We live in a time where speed and efficiency are of paramount importance. Moreover, technology is also rapidly coming up with its newest trends, such as automation, to embrace these key values. Besides other fields, automation has been crawled up within the supply chain.
But how can automation within the supply chain benefit businesses like yours? Moreover, what is supply chain automation? Let’s explore!
What Is Supply Chain Automation & Why Is It Important?
Supply chain automation, in simple terms, refers to streamlining and automating the supply chain processes & operations using modern technologies. These modern technologies may include Machine Learning, Artificial Intelligence, the Internet of Things, Predictive Analysis, etc.
Besides manual operations, you may also automate software-driven processes using technologies such as intelligent document processing (IDP). Automation is a great, efficient, and cost-effective way of reducing manual work within your business operations, thus improving visibility and making the workflow more efficient and productive.
Benefits of Supply Chain Automation
Keeping up with the latest technological trends and innovations, such as automation, is important for every business. Besides reducing human labor, these technologies offer tons of other benefits. Here are some benefits of supply chain automation.
1. Improved Supply Chain Transparency
With supply chain automation, you’ve automated systems that can monitor, track, record, and present data in real-time. Thus, supply chain automation provides transparency and visibility within the supply chain. This enables businesses to make informed decisions, improve communication with suppliers and customers, and enhance overall supply chain collaboration.
2. Increased Productivity & Efficiency
By implementing automation within the supply chain, businesses can see a drastic 20% rise in productivity. It’s because automation streamlines routine and repetitive activities, thus speeding up operations and reducing errors. Thus, supply chain automation can handle complex data and tasks more easily and accurately than humans, thus saving time and resources.
3. Reduced Costs
Supply chain automation eliminates the need for manual labor, thus saving up on labor costs. Besides, it also reduces paperwork and optimizes transportation and logistics operations, thus reducing costs and enabling businesses to make cost-effective decisions.
4. Increased Accuracy
Manual processes are accompanied by human errors and the risk of inconsistency. At the same time, supply chain automation improves accuracy by minimizing human intervention and standardizing processes. Automated systems ensure data consistency and accuracy throughout the supply chain, reducing the risk of data entry errors, misplaced orders, and inaccurate inventory records.
5. Greater Agility
With automated systems, businesses can quickly adjust production schedules, reroute shipments, and optimize inventory levels based on changing circumstances. Thus, automation enables greater agility by providing real-time data, enabling quick responses to market changes, demand fluctuations, and supply disruptions.
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Tools for Supply Chain Automation
Supply chain automation revolves around using tools and technologies to handle supply chain tasks & operations without little to no human intervention. Some of the most common tools and technologies used in supply chain automation are discussed below:
1. Artificial Intelligence (AI) & Machine Learning (ML)
AI & ML can be used in supply chain automation, right from demand forecasting to warehouse automation. Besides these, they may also be used for inventory management, route planning, etc. These transformative technologies can easily analyze historical & real-time data to identify patterns and anomalies.
AI and ML technologies provide real-time visibility into the entire supply chain, integrating data from various sources and systems. Not just this, AI and ML-powered chatbots and virtual assistants even improve customer service by providing instant responses to inquiries, order tracking, and personalized recommendations.
2. Robotics
Robotic Process Automation (RPA) will prove to be a revolutionary tool in supply chain automation by using software robots or “bots.” One of the key areas where RPA can make a significant impact is in the order processing and fulfillment process. RPA bots can retrieve customer orders from different channels, validate the data, and automatically enter the order details into the enterprise resource planning (ERP) system.
Besides this, RPA can regularly monitor and update inventory data and changes in it, thus improving overall supply chain responsiveness. RPA also plays a crucial role in streamlining the procure-to-pay process. Bots can automate the retrieval and verification of supplier invoices, match them with purchase orders and receipts, and initiate the payment process.
Furthermore, RPA can be seamlessly integrated with other supply chain automation tools, such as warehouse management systems (WMS) and transportation management systems (TMS). This creates a cohesive and interconnected supply chain ecosystem.
3. Internet of Things
The Internet of Things (IoT) connects the physical world with the digital one, thus enabling seamless communication, data exchange, and automation across the entire supply chain. IoT devices, such as sensors, RFID tags, and GPS trackers, enable real-time tracking and monitoring of assets, inventory, and shipments.
IoT devices at retail stores can capture real-time sales data, providing accurate and up-to-date information on consumer demand. Moreover, IoT-powered smart warehousing systems leverage sensors, beacons, and connectivity to optimize warehouse operations. As IoT technologies continue to evolve, the future holds even greater opportunities for leveraging IoT as a powerful tool for supply chain automation and innovation.
Examples of Supply Chain Automation
Supply chain automation can save time and money, improve productivity, and prepare businesses for the future. Here are some examples of supply chain automation:
- Shop floor equipment with fixed automation or robots on an assembly line can speed up production.
- Automating manual tasks such as generating essential documents, processing orders, assigning picking slots, and paying out invoices can be extremely time-consuming.
- Warehouse robotics, the Internet of Things, Artificial Intelligence, Machine learning, Predictive Analytics, Digital process automation, Optical Character Recognition, and Data entry automation are some of the technologies used in supply chain automation.
- Autonomous vehicles, including supply chain vehicles, can be used for transportation in the supply chain.
FAQ: Supply Chain Automation
1. What is supply chain automation?
Supply chain automation, in simple terms, refers to streamlining and automating the supply chain processes & operations using modern technologies.
2. Why is supply chain automation important for your business?
Automation is a great, efficient, and cost-effective way of reducing manual work within your business operations, thus improving visibility and making the workflow more efficient and productive.
3. What are some examples of supply chain automation?
Some examples of supply chain automation include production line automation, autonomous vehicles, automated management reports, etc.
4. What are the benefits of supply chain automation?
Supply chain automation offers numerous benefits, including improved transparency, increased productivity and efficiency, reduced costs, increased accuracy, and greater agility.
5. What are the tools for supply chain automation?
Some tools for supply chain automation are Robotic Process Automation (RPA), Artificial Intelligence (AI), Internet of Things (IoT), etc.
Wrapping Up
Supply chain automation has emerged as a game-changer in the ever-evolving business landscape. From warehouse management to inventory control, businesses are harnessing the power of automation tools to streamline operations, reduce costs, and improve overall efficiency.
If you’re looking for some amazing supply chain automation solutions, don’t forget to check out QodeNEXT. Get in touch with us now to help you make the best choice to manage your fleet and optimize your process!
