How are modern-day automation systems helping logistics providers scale in line with business needs? Danielle Fernandes, vice president of strategy and go-to-market with Dematic, explains.

Labor issues, resilience and profitability are among the main challenges to companies looking to serve their customers in the most efficient manner, Fernandes says. A key to their success is acquisition of warehouse automation that’s flexible enough to enable the service provider to scale operations in line with customer demand. A typical distribution facility might start with a handful of automated guided vehicles or autonomous mobile robots, then add units in subsequent years. The same requirement for flexibility exists for day-to-day operations serving industries that experience regular peaks and valleys in demand, such as the year-end holiday shopping season. In all cases, though, the point is to make adjustments to the greatest extent possible to existing facilities, rather than having to build an expensive greenfield operation.

Warehouse networks today take a variety of forms, all geared toward enhancing the customer experience. Facilities range from giant regional distribution centers to much smaller locations closer to customers. In some cases, fulfillment might involve pulling directly from retail store inventory, possibly by way of a micro-fulfillment center located onsite. In the end, the precise form that a distribution chain takes will depend on which channel and fulfillment methods offer the best option for the ultimate customer.

“Software intelligence holds it all together,” Fernandes says, and that requires complete “orchestration” of multiple software and hardware applications, both within the facility and point-of-sale systems at the retail level. With the help of such technology, she says, retailers can better forecast demand and predict maintenance needs in the warehouse — all without disrupting the steady flow of product to the buyer.