Building resilient supply chains with AI

Denis Niezgoda at Locus Robotics describes how AI and robotics build resilient supply chains in a volatile world

 

Global supply chains have experienced wave after wave of disruption in recent years. From a shift in consumer behaviours and labour shortages to pandemics and geopolitical tensions, many organisations have been left to rethink what their supply chain strategies need to deliver. One thing is clear: flexibility is no longer a luxury; it’s a core requirement for supply chains today.

 

For decades, logistics optimisation has centred around predictability and efficiency. Now, however, as 87% of businesses expect to restructure their supply chains within the next five years, volatility has become the norm. Legacy infrastructure wasn’t designed for constant demand shifts or rapid change. Costs are fluctuating across the world. Consumer expectations are growing. Workforce availability is shrinking.

 

At the same time, volumes are shifting, order profiles are becoming more unpredictable, businesses must fulfil across multiple channels, returns are rising, and seasonality is becoming more extreme.

 

The businesses that will win in this environment will be those that can adapt quickly to the turbulent world around them. 

 

 

Flexibility as a core capability

When discussing supply chains, flexibility means so much more than just speed or scale. Flexibility enables businesses to adapt in real time, without major infrastructure changes or long lead times. That includes scaling capacity up or down, shifting fulfilment strategies quickly, adapting to new product lines, and operating across multiple networks.

 

Many legacy systems and automation solutions, particularly those that rely on fixed infrastructure, struggle to meet the demands of this new reality. 

 

They’re designed for consistency, not change. As a result, companies are now prioritising solutions and strategies that allow them to respond to uncertainty, not just endure it. Businesses now need supply chains that can bend, scale, and pivot. Resilience has replaced optimisation as the top priority for businesses. They need to be purpose-built for dynamic fulfilment environments.

 

 

Robots provide resilience on demand 

Robotics and AI are no longer futuristic concepts; they are heavily embedded technologies in day-to-day warehouse operations. From picking and packing to inventory management, these technologies are redefining warehouse operations, enabling faster adaptation and higher performance.

 

Autonomous Mobile Robots (AMRs) and real-time analytics are at the core of this transformation, enabling operations to be both adaptable and scalable.

 

For example, robotic fleets can be quickly redeployed to different zones, workflows can be reorganised in real time as demand changes, and new SKUs can be introduced with very little disruption. This level of flexibility allows warehouses to respond instantly, whether it’s to peak demand or unexpected disruptions.

 

Market conditions show no signs of calming down, and AMRs provide the resilience needed to meet increasingly complex customer expectations while maintaining throughput and accuracy, even as conditions change. By including AI and robotics, organisations gain responsiveness and reduce operational disruptions. 

 

 

Flexible automation

To stay competitive in a volatile market, flexible automation is the key. 

 

Not only does it allow for adaptive decision-making and real-time workflow optimisation, but it also means operations can evolve without the need for expensive infrastructure adjustments, unlike fixed systems.

 

Many warehouses are turning to solutions like person-to-goods AMRs, which offer real operational agility. These systems use intelligent routing and dynamic task allocation to guide human pickers to the correct location. This streamlines movement without the need for rigid automation. As a result, they can be dynamically reconfigured to meet changing demand without disrupting pre-existing workflows.

 

Embracing flexible automation doesn’t just mean businesses become more efficient. They gain the ability to respond to uncertainty and emerging trends. It’s all about future-proofing operations.

 

 

Flexible automation as a strategic add-on

Flexible automation is not limited to greenfield sites or companies looking to overhaul outdated systems. Increasingly, businesses are adding flexible solutions on top of their existing infrastructure, especially where legacy systems still serve core functions but lack the agility to respond to rapid change.

 

Instead of removing fixed automation, companies are using AMRs to fill the gaps. They scale throughput during peak seasons, support the launch of new product lines or other fast-rotating SKUs, or add capacity where rigid systems create bottlenecks. This hybrid approach gives businesses the benefit of both models: the stability of fixed infrastructure where it remains efficient; and the flexibility to respond to volatility without long-term commitments.

 

This strategy has become essential in managing seasonal demand, changing labour availability, and sudden shifts in order profiles. AMRs can be deployed quickly, scaled as needed, and moved between sites without disrupting core operations.

 

 

Building for uncertainty

When businesses partner with the right technology partner, they can scale smarter and faster. Across the industry, we’re seeing real-world momentum: companies are deploying AI-powered fulfilment to scale faster, adapt quickly, and support long-term growth.

 

Decision-makers are shifting their attention from models that focus on cost efficiency to ones that are agile and flexible. The ability to respond quickly to market dynamics is becoming a strategic priority.

 

This shift isn’t about replacing people; it’s about enabling them to focus on more valuable work.

 

People are needed in warehouses. This new wave means that people and technology can work together seamlessly, giving workers more time to focus on the integral parts of their roles. By combining the strengths of both, businesses can thrive in an unpredictable landscape.

 

 

The path forward is flexible

Remember, resilience comes from flexibility. Businesses that invest in AI-powered, adaptable fulfilment are better equipped to navigate uncertainty and seize just about any opportunity that arises.

 

The most successful organisations will be the ones that can pivot quickly when the unexpected happens. There’s no fixed roadmap, only constant change. Business operations must be built to adapt to whatever comes next.

 

The supply chain race is a hurdle; you can’t win with a sprinter’s mindset. You need an agile, enduring approach built for the long haul.

 

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Denis Niezgoda is Chief Commercial Officer at Locus Robotics

 

Main image courtesy of iStockPhoto.com and Suphanat Khumsap