Alternative Logistics Providers Gained Ground in New York
Brands are adopting new last-mile and automated fulfillment solutions to increase shipping control.
Updated on Oct. 6, 2026 in Transportation
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At the recent Sourcing Journal summit in New York City, logistics industry leaders highlighted the growing shift toward alternative shipping providers. Retailers such as Macy's, Sephora, and Lululemon are increasingly utilizing these services to gain greater flexibility in delivery speeds.
Why it matters
Brands are moving to alternative logistics providers to regain operational control over their supply chains and offer customers varied shipping options. This shift responds to a need for more nuanced, flexible service models that traditional incumbents founded in the early 20th century may not prioritize.
Robotic automation now handles up to 30 percent of order fulfillment for Highline Commerce in Brooklyn. This utilization of bimanual manipulators marks a significant shift from traditional manual operations in a market where firms like UPS have operated since 1907.
The players
Highline Commerce
A third-party logistics company founded more than five years ago that integrates bimanual robotics into its order fulfillment operations.
Veho
A last-mile delivery provider headquartered in New York City that serves major retail brands.
Ultra Robotics
The technology developer responsible for the Fleetwood Pack robotic system used in automated fulfillment centers.
The details
Logistics providers are deploying bimanual robotic manipulators to mitigate the high costs of rent and labor in urban centers like New York. By integrating technology that predicts and reacts to individual consumer nuances, these firms allow brands to maintain tighter control over the last mile. This transition enables retailers to choose distinct shipping speeds and fulfillment pathways tailored to their specific inventory needs.
Timeline
September 29, 2026: Sourcing Journal summit occurred in New York City.
1907: UPS was founded.
Market Landscape
The rise of specialized, automated logistics providers represents a move away from the traditional, centralized shipping infrastructure pioneered by long-standing incumbents. This shift signals a broader industry trend toward decentralized, tech-driven fulfillment hubs tailored to local urban demand.
Operators should evaluate whether current fulfillment partners offer the flexibility and tech-driven cost efficiencies seen in newer robotic-enabled models. Assessing the potential to lower labor and rent overhead through automation could be a priority for firms facing margin pressure in urban markets.
The takeaway
The adoption of robotic fulfillment platforms demonstrates how mid-sized logistics providers are carving out niches by solving local real estate and labor constraints. Monitor the performance of automated packing systems like the Fleetwood Pack to determine if your current fulfillment workflow requires modernization.
Further reading
For more on industry shifts, see the Transportation section.
Source note: This article includes information reported by WWD.
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