Robotic Automation Is Powering Elastic Logistics — Amplo Global Inc.

Robotic Automation Is Powering Elastic Logistics In 1982, Steven Spielberg’s E.T. the Extra-Terrestrial had emerged as a major box office hit, even going on to become the highest-grossing film of all-time.

In this age of social media and viral marketing, trends come and go, often driven by memes and transient fads. Estimating production volumes, inventories, and demand for what is currently popular tends to be an activity fraught with risks. DHL gives the examples of fidget spinners which had become wildly popular in 2017, selling 50 million units in the first six months of the year. Manufacturers were caught completely off-guard and had to scramble to meet demand. Which, as you might assume, did not last long. DHL calls this a “textbook example” of how traditional business models can be overwhelmed by unpredictability in demand and supply. “But today’s fast-moving world means that companies must be able to quickly expand or shrink their capabilities to meet the demand within the supply chain at any point in time. This flexibility is known as elastic logistics.”

Elasticity in logistics includes everything from being nimble on the manufacturing front to being able to optimize delivery fleets. It also includes being able to forecast risks, costs, and demand. And here, organizations are increasingly relying on the latest in data analytics, robotics, IoT, remote sensors, automation and predictive technologies that leverage artificial intelligence and machine learning. “Having such early warning systems helps companies monitor and avert fluctuations in demand, and deals with supply-side disruptions such as material shortages,” notes DHL.