The modern food industry faces a range of challenges. Consumers want fresh, high-quality products delivered quickly and conveniently, while companies deal with rising costs, labor shortages, and the ongoing issue of food waste. Traditional supply chain models are struggling to keep up in this fast-paced environment. The solution lies in flexible fulfillment, which uses technology to create agile and efficient fulfillment systems that can adapt to the changing needs of the fresh food sector.

The fresh food supply chain is marked by perishability, varying demand, and strict safety regulations. Fresh produce, dairy, meat, and seafood have limited shelf lives, so speed and accuracy are crucial. Any delays or inefficiencies can lead to spoilage, waste, and significant financial losses. Consumer preferences are also changing quickly. The rise of omnichannel shopping, personalized nutrition, and a demand for sustainable products are transforming the grocery market. To thrive, companies must be able to adapt to all these challenges.

Flexible fulfillment is a logistics strategy that enhances the agility and responsiveness of processing orders from multiple distribution centers. This approach is closely tied to the omnichannel trend, which creates a seamless experience for consumers across all shopping channels. 

Flexible fulfillment makes the best use of existing infrastructure and inventory to meet customer needs, no matter where the order comes from. It promotes a connected supply chain that can quickly adapt to real-time changes in demand and stock levels. 

Deloitte Insights report highlights that “In the long run, it is agility that can make the difference between operations that thrive and those that merely survive.” This underscores the importance of investing in technology so companies can respond quickly to shifting consumer preferences and market conditions.

Flexible fulfillment is gaining traction in the fresh food industry for several reasons:

• E-Commerce Growth: The rise of online grocery shopping created new demands on the supply chain. Customers now expect fast delivery of fresh produce in top condition. Flexible fulfillment helps companies meet these demands as part of a network of distribution centers and last-mile delivery services.
• Omnichannel Retailing: Consumers shop through various channels — online stores, mobile apps, and physical locations. Flexible fulfillment supports companies in offering a seamless shopping experience across all platforms, ensuring consistency no matter how their customers shop.
• SKU Proliferation: As grocery stores expand their product ranges, the number of stock-keeping units (SKUs) increases. Managing this complexity requires effective inventory management. Flexible fulfillment optimizes inventory levels to ensure products are available when and where needed.
• Demand Volatility: The fresh food market faces fluctuations due to seasons, weather events, and other factors. Flexible fulfillment allows companies to adapt quickly by reallocating resources and adjusting production plans.
• Labor Shortages: Shortages of workers hinders efficiency in the food industry. As part of flexible fulfillment, automation and robotics can handle repetitive tasks and boost productivity. 

Dematic is leading the way in flexible fulfillment for the fresh food industry with a variety of automation and software solutions designed for its unique challenges. These solutions, often centered around Automated Storage and Retrieval Systems (AS/RS), Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), Sortation Systems and driven by advanced Warehouse Execution Systems (WES) and the powerful Dematic software, are helping companies streamline operations and adapt to changing consumer demands. 

• Finnish retailer Kesko partnered with Dematic to automate its fresh food distribution center. The integration of an AS/RS system and automated picking systems, managed by WES software, allowed Kesko to speed up order fulfillment, cut down on waste, and improve customer service. This showcases how Dematic’s AS/RS solutions enhance storage efficiency and expedite order processing in temperature-controlled environments, which is vital for perishable goods.
• Tesco has used Dematic’s automated picking and sortation systems to boost efficiency and lower costs in its distribution centers. With the help of Dematic's WES software, Tesco has successfully addressed the growing demand for online grocery shopping and improved supply chain performance, highlighting the effectiveness of integrated solutions.
• Beyond grocery retail, Dematic solutions are also impacting food manufacturers. The Tasty Fresh Food Co. significantly improved its speed to market and ensured consistent delivery of fresh, high-quality products. By adopting automated picking and packing solutions, they achieved a 99.9% order accuracy rate, reduced labor costs, and optimized space utilization, all vital elements of a flexible fulfillment strategy.
• Americold, a leading temperature-controlled warehouse and logistics provider, demonstrates how Dematic is enabling retailers to meet the increasing demands of the frozen food industry. By updating their facilities with AS/RS and advanced warehouse management software, Americold improved efficiency, cut operating costs, and enhanced service offerings, including better product traceability and real-time inventory visibility. 

These examples highlight the transformative impact of Dematic solutions across the fresh food supply chain. From grocery retailers to food manufacturers and food distributors, Dematic is equipping retailers to tackle modern challenges and thrive in a rapidly evolving market.

Flexible fulfillment provides a strategic way to streamline the supply chain, minimize waste, and enhance customer service. By embracing flexible fulfillment, companies can benefit from agile and efficient fulfillment systems that adapt to changing market demands. As consumer preferences evolve and the demand for fresh, high-quality products grows, flexible fulfillment will be increasingly crucial for success in the food industry.