GXO WHITEPAPER
in transit. Some operators are using digital twins to model supply chain flows and identify the most efficient routing before orders are placed. In tandem, there has been a meaningful increase in inventory pre-positioning. The combination of regulatory unpredictability and the cost of delay has led many hyperscalers to order in advance and hold inventory closer to deployment sites, accepting higher carrying costs as the price of supply chain resilience.
Documentation management – and specifically the challenge of mixed country-of-origin declarations – is one of the most common sources of customs friction. GXO’ s response has been to design outbound processes as a single-piece flow with quality verification built into each step, supplemented by blind audits and customs brokers on staff whose training is kept continuously current.
Marcus highlights the additional layer of complexity introduced by the Free Trade Zone( FTZ) establishment, noting that the due diligence required is frequently underestimated in deployment timelines, with startup times not allocated at the level they require.
The risk, as Nicholas articulates, is a false sense of security during the low-volume ramp phase – when manual workarounds appear to be functioning, but the absence of connected backend systems means the model will fail under full operational load.
“ There are in-country nuances that absolutely need to be taken care of in order to maintain regulatory compliance, avoid fines and prevent brand damage”
Nicholas Baranski Vice President of Operations GXO
70 May 2026