Technological advancements that have occurred in the past few decades have led to improvements in various business sectors. Automation in these sectors is an example of how technology has been used to improve results. It’s a supply chain strategy that the logistics industry is benefiting from. Over time, more people in the industry are embracing the use of automation to improve efficiency and enhance supply chains. Have you started using automation and other relevant self-driving supply chain technology in your business? How is it affecting your supply chain process? It can do so in numerous ways.
What is Supply Chain Automation?
It refers to systematizing part of or the whole of a workflow to improve processes. It’s using technology to manage a complicated web of working parts. Automation of the supply chain is a game-changer and has several potential benefits, especially in this digital age where businesses have to maintain a competitive edge.
Many of the supply chain aspects that can utilize automation include; – order eCommerce fulfillment and inventory updates, payments, packing, customer service like email confirmation, and tracking revenue. For instance, when it comes to order management, automation can help reduce/eliminate some of the challenges like the complexity of global supply chains, rising customer expectations, and the outburst of order and delivery channels.
Tangible Value of Supply Chain Automation
Automation is known by those in the logistics industry as the solution to optimizing several processes like planning, distribution, procurement, and more. Platforms like an S2P software enhance the accuracy of work being done while ensuring that businesses comply with the stipulated procedures.
Robotic process automation used in most modern warehouses can and has helped in doing tasks that would be performed by humans, leading to a reduction in the number of employees. That saves businesses time and money. Also, most automated warehouses have been made more efficient to counteract competition at whole levels. Let’s see further reasons why you can use automation:
- Improved Operational Efficiency. What do we expect of machines which don’t tire out or get hungry? They always improve how we do things. Automation also enhances operational efficiency as its more accurate and effective. It also cuts down on operational costs. For example, one study found out that robotic process automation led to an over 40% reduction in resources used in order-to-cash processes like billing and pricing.
- Better Customer Service and Experience. One challenge the supply chain sector faces is the high expectations that clients have concerning the level of service they should be provided with. Businesses face pressure to offer faster and more personalized order management. They have to provide fast shipping and 24-hour customer service. Thankfully, with automation, that can happen. It keeps customers updated on order statuses in real-time and reduces the duration between ordering and fulfillment, thus enabling businesses to better serve customers.
- High Transparency Between Business and Customers. The automated supply chain does more than satisfy customers and ensures faster service delivery. It also creates transparency in operations, leading to trust. When customers see that updates are provided during the whole order management and fulfillment process, they’ll be more inclined to trust the business.
- Boosting Inventory Management. The new technological trend has led to improved inventory and order tracking, and enhanced demand forecasting. Automated reporting can help you make informed decisions on where to improve your business.
- Protection for Your Supply Chain. Unexpected things do happen and they can do so anytime. Automation helps put systems in a position to immediately react to extreme conditions. For instance, if a manufacturing plant has a problem, an automated system can immediately order fundamental parts or equipment from another partner without the need to do so by the normal command chain. That way, you eliminate worries that may arise if a breakdown occurs and also a team to supervise and react to such-like situations.
- It Enables Scalability. An automated supply chain allows for a remarkable level of scalability and productivity.
Some Automation Trends in Supply Chain
The beauty of technology is that it advances with time and what is used today might be improved to a greater extent in years to come. Supply chain automation has received a boost in past years and more improvements will continue to be made. Some of the automation in this sector include; – automated trucking (driverless trucks), improved machine learning, robotic process automation in warehouses, automated yard and dock management/scheduling, and self-generating reports. Others are automated notifications for managers and staff, smart forklifts, and conveyor belts.
Challenges of Implementing Supply Chain Automation
While automation of supply chain processes has several benefits that can accrue to a business, it can be a challenge to implement it. Some top challenges to doing so include:
- The full integration of automation within the supply chain requires an in-depth understanding of the whole supply chain process. Knowing how the freight flows, its position at any time, and the possible checkpoints can be hard. Being able to visualize how problems affect the rest of the supply chain and to act upon them promptly isn’t an easy task.
- Difficulties in applying data collected from technologies that enable automation. It might be hard to understand data from automated systems, something that can lead to inefficiencies.
- Cost of Supply Chain Automation. Automation will indeed lead to improved efficiency and cut costs by reducing the workforce, installing it can be expensive. It’s costly to set up robots and other machines used in automating operations. Most enterprises wishing to use this system hold back because of the adoption rates of automation.
- Inability to perform menial tasks. Yes, robots are beneficial and efficient but they can’t fully replace humans. Some tasks might only be sufficiently done by real employees. Also, humans are more suitable for making real-time decisions that depend on stimuli around them. These mechanical workers are programmed and can’t make any quick needed adjustments.
Conclusion
You can bolster your supply chain performance with automated processes. It’s the best way to augment the value of your existing supply chain network. Why not streamline operations and improve your staff’s workload? Some tasks are worth automating! Try using this strategy and experience a productivity boost.
