In today’s volatile trade environment, supply chain resilience has become a boardroom priority. Tariff fluctuations, geopolitical uncertainty, labor shortages, and rising transportation costs have put unprecedented pressure on manufacturers and distributors, especially mid-market companies operating under $1 billion in revenue.
To unpack how these companies can adapt, The Real Finds Podcast host Gordon Lamphere sat down with Rob Kress, founder of Waypost Advisors. Rob’s firm specializes in bringing Fortune 50-level supply chain expertise to mid-sized manufacturers and distributors, delivering both strategic de-risking and operational execution.
Why Mid-Market Supply Chains Struggle
Rob’s career spans more than two decades in senior leadership roles at large multinational corporations. Time and again, he noticed a glaring gap: while big companies have deep teams dedicated to supply chain strategy, most mid-market companies operate with lean staffing and limited expertise.
This often leads to a mismatch between company size and capability.
“A $300M manufacturer might still be running like a $50M shop,” Rob explained. “They’ve grown, but they haven’t built the processes to match that growth.”
Unlike Fortune 50 firms, mid-market companies can’t always “throw money at the problem” by hiring a team of high-cost specialists. Instead, they must be scrappy, finding ways to stretch scarce resources while managing increasingly complex global networks.
From Problem Solving to Capability Building
Waypost Advisors takes a hands-on approach, focusing 100% on execution. They don’t just advise, they step in, identify bottlenecks, fix them, and leave the client stronger than before.
One common pain point? Inventory imbalances.
Many mid-sized firms are either overstocked with the wrong SKUs or struggling with customer backlogs because procurement teams place orders reactively instead of strategically. Rob’s team builds internal capabilities so that once they leave, the client can maintain and improve the new systems.
De-Risking in a Tariff-Fueled World
With tariffs and geopolitical tensions reshaping sourcing decisions, Rob recommends companies evaluate supplier diversification but warns that it’s rarely quick or cheap.
“If all your supply is coming from China, finding and validating new sources elsewhere can take six to eighteen months,” he said.
Case in point: a medical device manufacturer sourcing catheter tubing exclusively from China. Waypost helped identify a secondary supplier in Thailand, creating a dual-source strategy. While production costs rose 30%, the client gained a critical backup that could keep operations running if Chinese supply was disrupted.
Balancing Resilience with Efficiency
Many firms fear that de-risking will destroy efficiency. Rob argues you can do both, but it requires internal operational improvement.
Even if you keep your primary overseas supplier, you can offset cost increases through smarter logistics and process optimization.
In one project, Waypost saved a Midwest industrial client $3 million through network optimization, re-routing trucking lanes, eliminating double-backs, and maximizing load efficiency.
Automation and AI: Promise and Pitfalls
Automation is gaining momentum in mid-market manufacturing, especially as labor shortages persist. Robots and advanced manufacturing systems can make reshoring feasible by reducing labor dependency.
AI adoption, however, is uneven. While large companies lead the way in machine learning and predictive analytics, mid-sized firms often lack the clean, organized data needed for effective AI models.
Rob cautions against AI “snake oil”:
“Ask for specific examples and references. If someone won’t take a few hours to understand your business before charging you, that’s a red flag.”
Breaking Barriers to Change
Rob emphasizes that technology is only a tool, real transformation comes from culture. Continuous improvement must be led from the top, with leadership actively championing change and creating space for employees to contribute ideas.
He also warns against overwhelming already maxed-out teams:
“If people are working 80 hours a week, telling them to ‘go make things better’ won’t work. You have to remove pressure, guide them through change, and show how life will improve.”
Industrial Real Estate Implications
Looking ahead 10 years, Rob predicts steady U.S. industrial real estate growth, with site selection increasingly tied to supply chain strategy.
Mexico, he notes, could see renewed manufacturing investment due to its lower costs and proximity to U.S. markets. Incentives will also shape where companies build industrial assets, as states compete to attract facilities.
Advice for the Next Generation
If he could advise his younger self, Rob’s message is simple:
“Listen more than you talk. Be willing to learn, raise your hand, and ask questions. You know less than you think you do.”
Recommended Read
Rob’s top book pick: Never Split the Difference by Chris Voss — a must-read for anyone looking to improve negotiation skills and build empathy in business.
Final Takeaway
Mid-market companies can’t afford to “wait and see” in today’s unpredictable trade climate. The winners will be those who take action now — diversifying suppliers, investing in automation wisely, and building a culture of operational excellence.
“You need a Plan B before it becomes your Plan A,” Rob concluded.
If you would like to learn more about how we tailor our services to meet the needs of middle-market businesses, please reach out to our team of commercial real estate agents.