Forward Inventory Positioning: The Ultimate Guide to Faster Delivery, Lower Costs, and Supply Chain Resilience (Part 1 of 2)

Why Forward Stocking Locations (FSLs) Are the Competitive Edge Every E-Commerce and DTC Brand Needs in 2025

If you work in supply chain, run a growing brand, analyze retail investments, or simply want to understand how companies are staying alive in this high-cost, low-margin jungle we call 2025 — you’re in the right place.

This post is Part 1 of a two-part series introducing forward inventory positioning and its real-world applications.
In Part 2, we’ll dive into the mathematical models and AI-powered strategies that bring this concept to life.

This blog isn’t about fancy slogans or marketing magic,
it’s about execution. 🛠️

Global trade hasn’t exactly been a cruise lately.
In 2024, tariff-related costs jumped thirteen percent (13%) across consumer goods. Why? Geopolitics, duties on electronics, retaliatory trade action... you name it.
Meanwhile, customer expectations kept rising faster than a Gen Z TikTok trend: McKinsey says 75% of online shoppers now want their deliveries in two days or less — or else. 🚀

Retailers are stuck in a squeeze play. Costs up. Margins down. Shoppers more selective. Sure, things like product recommendations and better quality still matter — but they’re harder to move the needle on these days.

The new trifecta that wins loyalty? Speed, cost efficiency, and reliability.

So, what’s the one lever that affects all three?
Welcome to the world of forward positioning of inventory (aka putting your stuff where your customers actually are).

Forward Positioning of Inventory: A Fancy Name for Smart Storage 📦

Forward positioning of inventory means storing products closer to where your customers are, rather than keeping everything in one big, far-off warehouse. 🏬🚚 Think of it as setting up shop near the action instead of hoping cross-country shipping will save the day.

This approach is operationalized through Forward Stocking Locations (FSLs) — smaller, strategically placed inventory nodes that serve high-demand regions.

📦🌍 FSLs are the practical embodiment of forward positioning, enabling faster last-mile delivery and greater resilience against supply chain shocks.

By strategically positioning inventory — whether it’s in your own warehouse, a third-party facility, or via cross-docking — you reduce delivery time, cut transportation costs, and boost the chance of a happy customer (and fewer angry emails).

Use Case: Amazon and Zumiez

Amazon's fulfillment network uses predictive analytics and machine learning 🤖📊 to place products near expected demand, enabling same-day or next-day delivery. That’s not magic — it’s math, AI, and a bit of geopolitical chess.

Zumiez, the DTC streetwear brand, turned 500+ U.S. stores into mini-warehouses. [Additional resource, Chain Store Age Magazine] 🧢📬 That decision helped them cut delivery times and improve omnichannel efficiency. No warehouses? No problem.

This move toward Forward Stocking Locations (FSLs) isn't just about speed. It’s a way to bulletproof your fulfillment strategy against volatility, disruptions, and customer churn.
In an era where global shipping lanes are influenced by tariffs, regional policies, and economic sanctions, localizing your inventory has become a risk hedge, not just a convenience.

So... Why Does Inventory Even Matter?

Inventory isn’t just dead weight sitting on shelves. 🏗️📦 It drives:

• Unit economics (bulk buys = cheaper production & shipping)

• Customer satisfaction ("In stock" beats "Backordered" every time)

• Risk management (buffer against delays, spikes, or breakdowns)

Whether you centralize your inventory or go full FSL depends on your business model: 🧭

• Centralized = Lower cost, easier control, but more fragile

• Decentralized = Faster, more resilient, but higher complexity

• FSLs = A nice middle ground: local speed without opening 37 new warehouses

And don’t forget, tariffs and cross-border regulations have made it riskier than ever to rely solely on distant suppliers.

⚠️🌐 Keeping goods closer to customers = fewer customs headaches and better control over lead times.

What Makes FSLs Awesome?

1. Faster delivery = Happier customers

2. Lower transport costs = Healthier margins

3. Better service = You look like a logistics wizard (even if you're running on coffee and willpower)

4. Resilience to geopolitical events = Less scrambling when a port gets blocked or a new tariff drops overnight

Who Should Use FSLs?

Not every business. Let’s be clear.

If you're selling custom leather sofas with a 3-month lead time — maybe stick to centralized fulfillment. But if you're in fast moving commerce, electronics, food, IT parts, or DTC and you need to move fast?
FSLs could be a game-changer.

Here's a breakdown by sector (see chart in post). 📊🗂️

Wrapping It Up 🌍

Forward positioning isn’t a silver bullet. But for the right business, in the right context, it delivers where it counts: speed, cost, and customer retention.

In a world shaken by geopolitical uncertainty, unpredictable tariffs, and supply chain fragility, it's more than just a logistics choice — it's a strategic defense.

That said, it's not for everyone. 🤷‍♂️ Businesses with slow-moving goods, high SKU complexity, or low margins might not see the ROI. And that’s okay.

But if your customers expect you to be fast — and happy — you might want to ask yourself: Is your inventory in the right place? 🧐📍

Next Up in Part 2:

We’ll dive into the math behind forward positioning, including cost modeling, service levels, and how small brands can start using AI to optimize inventory placement. Bring your spreadsheets — and your coffee. ☕