February 17, 2026 • 8 minute read
Author: Phyllis Jackson, Senior Manager, US Marketing, UPS

Key Points

• AI and automation can help take the guesswork out of your busiest days, allowing you to plan, adapt and deliver.
• Smarter inventory, smoother deliveries and faster returns help you turn last-minute chaos into consumer loyalty.
• With the right tech, your team can spend less time trying to solve problems and more time growing your business.

Every wholesaler knows the feeling: The last-minute order that gets your heart racing, the customer who needed it yesterday, the stack of tasks that only grows. Sometimes, that adrenaline is part of what keeps the job exciting. But more often, it’s just a reminder of how quickly a good week can unravel with stockouts, missed deliveries, or simply not having the right data at the right time.

Competition is fiercer than ever. Labor is tougher to find and afford. In fact, labor accounts for 50% to 70% of warehouse fulfillment costs.¹ Operational costs keep climbing. That’s why it’s no surprise that even seasoned teams are rethinking how they stay ahead.

You don’t have to muscle through the chaos alone. Here’s how automation and artificial intelligence (AI) can help your business discover greater efficiencies.

Stay Ready, Not Reactive, with Automation and AI

The difference between a good week and a stressful one often comes down to timing. Ever get that rush when a big order drops in at 8 a.m.? It can be a thrill. Until you realize you’re unsure if you have everything you need in place to succeed.

That’s where automation and AI step in. Automated systems can take care of routine tasks, while AI-powered forecasting and predictive analytics let you spot trends before the orders even land. No more relying on last-minute gut checks or late-night number crunching. With real-time data and smarter automation, you’re ready for the rush and not overly spending on extra stock you don’t need.

The numbers don’t lie: Companies using AI tools are seeing up to 65% fewer lost sales, a 20% to 50% reduction in forecasting errors, and a 30% boost in speed to market and productivity.² Wholesalers are realizing that AI can also provide a blueprint for proactive changes, rather than reacting to demand challenges.

And AI does more than help you get a handle on demand. The innovation can also help with inventory management.

What you can do:

Start by reviewing your past six months of sales data. Are there recurring demand spikes or last-minute orders that catch you off guard? Identify where forecasting could make a difference and consider how AI could help you analyze faster and more efficiently.

Inventory Automation Helps Remove Guesswork

Ever had one of those days where you find a product you forgot about or realize you’re out just when demand spikes? If inventory feels like a guessing game, chances are you’re watching products pile up when you don’t need them—or facing empty bins when you do.

With AI and smart platforms designed for your business, you can swap second-guessing for real answers. Real-time data gives you a crystal-clear view of your inventory: Just enough stock, right where you need it, and alerts before you run low. And when AI helps you accurately see your operations, you can potentially reduce inventory by 20% to 30%.³

“When you actually see what’s really happening in your warehouse, you can focus on running your business,” Cawthorn adds. “Let AI handle the tracking.”

What you can do:

Audit your inventory turnover for your top-selling items. Where are you consistently overstocked or understocked? Consider how AI-powered inventory automation tools could help you maintain the right stock levels, avoid lost sales, and reduce costly excess.

Turn Delays Into Success Stories

Unexpected traffic jams, sudden storms, and last-minute changes can send your best-laid plans sideways. But the right technology and shipping automation can help turn those wild cards into wins by providing greater reliability and visibility.

Behind the scenes, UPS uses advanced technology—like real-time network modeling, enhanced visibility with RFID, and AI-powered route optimization—to help minimize disruptions, adjust delivery windows, and keep your shipments on track. That means fewer surprises and more peace of mind for wholesalers.

Tools like UPS My Choice for Business automate tracking and notifications for inbound and outbound shipments, including commercial deliveries on weekends or after hours. This level of shipping automation helps you stay ahead of inventory needs, avoid missed shipments, and communicate proactively with your customers—all without extra manual work.

What you can do:

Does your shipping provider offer real-time delivery tracking and route optimization? If not, look into solutions that can proactively notify you (and your customers) about potential delays.

Boost Efficiency, Build Morale

Staffing remains one of the biggest challenges for businesses like yours. Finding dedicated help can be difficult, turnover can be high, and training new groups of people again and again can be time-consuming.

AI is here to help make everyone better at what they do. By taking care of repetitive tasks that take up workers’ time (think mapping out schedules, optimizing routes and even forecasting for peak seasons), you’ll be better prepared for the ebb and flow of business.

Technology can also improve morale. Approximately 83% of employees say AI and technology make work feel more enjoyable.⁴

“With AI, the little wins can add up,” Cawthorn says. “When you can get ahead of demand, keep your shelves stocked, move faster, and give your team more breathing room, everything just works better for the business.”

What you can do:

Identify which repetitive tasks are slowing your team down. Ask how your processes stack up against industry peers—UPS can help benchmark your operations so you know where you stand and where you can automate for the biggest impact. Look for automation solutions that add reliability and flexibility, freeing your team to focus on what moves the business forward.

Fast Track Your Returns

Sometimes, what your customers remember most isn’t what they bought. It’s how easily and quickly they can return their purchase when it’s not the right fit.

For wholesalers, clunky return processes don’t just slow things down. They can strain your relationships with the retailers who keep your business moving. The fix? Give your partners an easier way to initiate returns or exchanges, track their status, and get credit or replacements from a single, account-based portal. Automation and a strategic process for reverse logistics keeps the details moving, so goods get back where they need to go and your team isn’t stuck sorting out paperwork.

AI can also look for patterns in your returns so you can tackle recurring issues and build more trust across your network of suppliers and manufacturers. That can mean your team spends less time sorting paperwork, while happier customers are more likely to engage with you in the future.

Given this, it’s no wonder companies using AI for returns have seen up to 30% lower customer service operational costs.⁵

What you can do:

Ask your retail partners how easy it is to initiate and track returns or exchanges. Where do they get stuck, and what frustrates them? Use that feedback to pinpoint bottlenecks; then explore automated, account-based return solutions that can take the friction out of every step.

¹ “Labor Remains Highest Operating Cost in Modern Warehouses,” Supply House Times, March 20, 2025.
² “AI for Demand Forecasting: Use Cases, Implementations, Benefits, and Examples,” Appinventiv, May 13, 2025.
³ “Harnessing the Power of AI in Distribution Operations,” McKinsey & Company, November 15, 2024.
⁴ “AI in the Workplace Statistics 2024,” AIPRM, accessed June 23, 2025.
⁵ “61 AI Customer Service Statistics in 2025,” Desk365, April 1, 2025.

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.