Transforming Supply Chains: An Interview with Steve Cheung, President, Asia & China, Dematic
By Ahmad Alshidiq, Senior Editor
In today’s fast‐paced global economy, the integration of automation and digital intelligence isn’t just an operational upgrade – it’s a necessity. Industrial Automation Asia recently sat down with Steve Cheung, President, Asia & China at Dematic, a leader in intralogistics and supply chain solutions. With decades of experience and a passion for innovation, Steve shares with us his insights on industry trends, disruptive technologies and the strategies Dematic employs to overcome current sector challenges. His clear vision for the future of logistics is both thought‐provoking and instructive for anyone looking to stay ahead in the rapidly evolving landscape.
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IAA: Could you share with us more about the industry that is most lucrative to Dematic?
Steve Cheung (SC): Without a doubt, our most lucrative sector has been warehousing and distribution – especially as e-commerce continues to reshape consumer expectations around speed, accuracy and efficiency. Our solutions have revolutionised how modern warehouses operate. We see a tremendous impact in the logistics arena of retail, where the demand for agile, high-throughput systems has never been higher.
The industry’s shift from traditional manual workflows to highly automated environments has consistently produced a robust return on investment. In essence, as companies look to optimise the fulfilment process and reduce overhead costs, the warehousing and distribution sector remains our cornerstone in terms of profitability and innovation.
By focusing on this industry, Dematic has enabled partners to meet escalating market demands and enhance service quality while keeping operational costs in check. It is this fusion of technology and industry expertise that not only drives revenue but also furthers our commitment to shaping the future of global logistics.
IAA: What are the main technologies or systems that form the core of your solutions?
SC: At Dematic, we have built our solutions upon a robust integration of advanced mechanisation and intelligent software systems. Our portfolio includes automated storage and retrieval systems (AS/RS), state-of-the-art conveyor systems, robotics integration, and warehouse control systems (WCS). These are complemented by sophisticated inventory management software and data analytics platforms that allow end-to-end visibility of the supply chain. Our systems communicate seamlessly with each other, ensuring real-time synchronisation of operations while adapting to variability in order demand. This blend of physical automation with digital intelligence is the backbone of our solutions, creating a holistic ecosystem that optimises every facet of warehousing and distribution.
The synergy between these technologies enables us to transform conventional warehouses into smart, responsive hubs. Each component – mechanical precision, real-time data processing, and robust software – contributes to a system that not only streamlines operations but also provides valuable insights for future strategic planning.
IAA: How has your biggest customer benefited from your solutions?
SC: One of our largest customers has experienced a positive transformation since adopting our solutions. Through the deployment of our integrated systems, the customer achieved a reduction in order cycle times, coupled with an impressive improvement in inventory accuracy and throughput.
By automating critical components of their supply chain, they have not only slashed operational expenses but also enhanced customer satisfaction through faster deliveries and more reliable order fulfilment. This efficiency has translated into tangible cost savings and opened up opportunities to reinvest in emerging technologies and market expansion.
Moreover, our customised approach allowed them to adapt quickly to surges in demand, while our modular systems provided the flexibility to scale operations based on real-time needs. The success of such clients reinforces our belief that a well-executed automation strategy can fundamentally reshape business efficiencies and drive sustainable growth.
IAA: What are your thoughts on the rise of artificial intelligence (AI) in the automation industry?
SC: The rise of AI in this industry is nothing short of revolutionary. Artificial intelligence and machine learning are greatly enhancing traditional automation processes by introducing elements of predictive analysis, adaptive decision-making, and real-time responsiveness. AI enables systems to learn from historical data and operational patterns, thereby identifying potential bottlenecks and optimising routing, scheduling, and maintenance before issues even develop. This level of insight is invaluable – it transforms reactive systems into proactive ecosystems that are agile enough to respond to constant market fluctuations.
In my view, AI isn’t merely an add-on; it’s a catalyst that accelerates innovation. The capability to integrate deep learning into logistical operations is reshaping how companies approach efficiency, safety, and cost management. This isn’t just a technological trend – it’s a paradigm shift that will continue to create opportunities for smarter, more resilient automation systems in the years ahead.
IAA: Have you embedded AI in your solutions? And how does the technology make your solutions more effective?
SC: Absolutely, we have. AI is now at the heart of many Dematic solutions. By embedding AI algorithms into our analytics and control systems, we can offer dynamic, real-time decision support that significantly enhances operational effectiveness. For example, our predictive maintenance tools continuously analyse the performance data of moving parts to detect anomalies before they escalate into costly failures.
Additionally, our demand forecasting models powered by AI allow our clients to adjust inventory and resource planning accurately, ensuring that supply and demand remain in balance.
The integration of AI transforms our systems from static assemblies into interactive and self-optimising networks. This adaptive quality improves not only speed and precision but also operational resilience—ensuring that companies are better prepared to manage sudden changes in market behaviour or unexpected disruptions in the supply chain.
IAA: What are the challenges in the current intralogistics and supply chain sector, both globally and in Southeast Asia?
SC: Globally, the intralogistics and supply chain sectors face a complex web of challenges. Geopolitical uncertainties, labour shortages, fluctuating demand due to economic cycles, and disruption from unforeseen events all contribute to a volatile environment. In Southeast Asia, the challenges become even more pronounced due to infrastructural limitations, competitive maritime and land transport conditions, and evolving regulatory landscapes.
There’s also a significant digital gap; many traditional firms are still in the early stages of integrating advanced automation, which impedes their ability to fully tap into the efficiencies modern technology offers.
These challenges demand a multifaceted approach. The industry must reconcile rapid technological change while navigating regulatory and operational variances across regions. Our understanding of these dynamics has informed our strategy, enabling us to develop solutions that are both globally robust and locally adaptable – a necessity in today’s market.
IAA: How does Dematic address them?
SC: At Dematic, we take a proactive stance in tackling these challenges by designing solutions that are inherently flexible and scalable. We invest considerably in research and development, ensuring that our systems remain at the forefront of innovation. Our modular designs enable quick adaptation to changing market conditions, while our strategic partnerships with local stakeholders across Southeast Asia ensure compliance with regional regulatory standards and infrastructure peculiarities. We actively collaborate with governments and industry bodies to foster an environment where technology adoption is both streamlined and supported.”
Our approach is built on resilience and agility. By integrating adaptive technologies such as AI and IoT with traditional automation, we’re able to offer our clients solutions that are future-proof. This means that whether it’s a sudden surge in demand or unexpected market disruptions, our systems remain robust and responsive—a critical advantage in a globalised economy.
IAA: What plans do you have to navigate through the challenges posed by the new US tariffs?
SC: The new US tariffs have indeed introduced another layer of complexity to global supply chains. In response, Dematic is implementing a multifaceted strategy that focuses on supply chain diversification and risk mitigation. We are actively reassessing our production and sourcing models to reduce dependency on any one region – this includes expanding partnerships with facilities outside of tariff-impacted areas and increasing investments in local supply chains. Additionally, we are leveraging advanced digital tools that monitor trade flows in real time, allowing us to adjust logistics networks swiftly and minimise exposure to tariff fluctuations.”
By proactively redesigning our supply framework, we aim to turn a challenging situation into an opportunity for strengthened resilience. Our goal is to maintain operational efficiency while insulating our operations from adverse market forces. Through continuous innovation and strategic realignment, we’re confident that we can not only navigate the current tariff challenges but also set a robust foundation for our future growth.
Conclusion
Steve Cheung’s insights clearly reflect a broad vision – from harnessing AI to reimagining traditional systems, to mitigating external economic pressures through strategic planning. With Dematic’s commitment to adaptive technology and proactive problem-solving, it’s evident that the company is poised to set new benchmarks in intralogistics and supply chain excellence. As global markets evolve and regulatory landscapes shift, leaders like Steve are inspiring confidence by demonstrating that true innovation comes from embracing change and anticipating future challenges.