Kim Baudry, Dematic’s Global Market Development Director, explores the critical need for agility in supply chains and how innovative software solutions are redefining the way businesses navigate an unpredictable future.
Imagine waking up to find your supply chain has been disrupted overnight — how quickly could your business pivot and keep operations on track? The ability to adapt to these situations has shifted from being a competitive edge to an absolute need. “There is a requirement to be more flexible and nimbler in our operations,” says Kim. As industries face a wave of unforeseen challenges, the real question isn't whether disruptions will occur, but when — and how capable your business is to react.
Embracing flexibility and unpredictability
Kim emphasizes that today's customers face an uncertain future, unable to predict what the next three to five years — or even the next year — might bring. “Our customers don't know what's going to happen, so they're constantly changing,” she notes. This uncertainty spans all verticals, from retail to manufacturing, as geopolitical events and supply chain disruptions continue to reshape the global marketplace.
In response, Dematic is shifting focus from long-term planning to a more dynamic approach to provide solutions that allow companies to adapt to rapid changes. Whether it's in retail (where sectors like general merchandise and grocery are under constant pressure to reduce costs) or manufacturing (where geopolitical factors can have a significant influence), the need for flexibility is universal. This trend has led to an increased demand for software and solutions that are as agile as the businesses they support.
“One of the most exciting things we're going to see coming out of our industry in the coming years is the advancement of the importance of software and how it pulls things together across a network of our customers business.”
The role of software in the future of supply chains
Kim predicts software will play a pivotal role in integrating and optimizing supply chain networks, from small micro-distribution centers to large national ones. A software-driven approach empowers Dematic to act as a true integrator, bringing together the right products and solutions to meet the unique challenges of each customer.
The vision for the future is clear: Use software to create a toolbox of solutions that can be tailored to the specific needs of any business — whether it's reducing labor costs, increasing speed and reliability, or improving inventory visibility. This helps retailers and manufacturers stay agile, improve efficiency, and stay ahead of the competition by addressing their specific challenges directly.
Addressing industry challenges with innovative solutions
The supply chain industry faces significant challenges, with labor shortages continuing to be at the forefront. “We're dealing with staffing issues in both warehouses and stores,” says Kim, noting the increasing difficulty in meeting growing consumer expectations. As the labor pool shrinks and costs rise, the urgency for automation and labor-saving technologies intensifies.
Space constraints, particularly in urban areas, add another layer of complexity. Retailers are responding with innovative solutions like multi-level distribution centers that maximize vertical space and minimize the need for sprawling facilities.
“If businesses want to optimize inventory with placement closer to consumers, we can use advanced automation in compact spaces, like multi-level systems with shuttles.”
This approach is particularly effective in sectors such as food and beverage where direct-store delivery can enhance speed, freshness, and accuracy. By focusing on these specific requirements, Dematic helps customers navigate through their unique challenges to improve operational efficiency and gain a competitive edge.
Supporting customers in a competitive landscape
As supply chains continuously to evolve, the only hope for staying ahead of the competition is by anticipating and responding to changes quickly. “Any time a big company does something different, it causes other companies to react. I see a lot of customers trying to be more prepared for those changes and come out doing things ahead of their competition, ” Kim explains.
Retailers and manufacturers are increasingly preparing to lead rather than follow, and this constant pressure to innovate and adapt is driving them to seek out flexible, responsive solutions to keep them ahead of the curve. Dematic is committed to providing these flexible fulfillment solutions that feature smart software for optimizing operations for speed and efficiency.
Building the future of supply chains
With retailers and manufacturers knowing that many of their future challenges are unpredictable, the importance of flexibility, innovation, and software-driven solutions cannot be overstated. “Our mission is to empower our customers to overcome their toughest challenges,” says Kim. By understanding customer needs and providing tailored tools and technologies, Dematic helps its customers navigate through an evolving supply chain landscape to profit and success.