The Covid-19 pandemic aided organizations in identifying flaws in their supply chains. Repeatable, process-oriented, and error-prone tasks abound in supply chain networks. It includes everything from manual documentation errors to picking and stocking mistakes, shipping and receiving mistakes, and much more. Automation is a powerful tool for improving existing supply chain processes and introducing new ones.
Supply chain managers are recognizing the advantages of automation. As a result, the supply chain automation market grew 10.5 percent per year from 2015 to 2019, and this market is likely to double by 2026. Therefore, businesses must place a greater emphasis on automating operations in order to overcome supply chain weak points and remain competitive.
As a result, businesses should place a greater emphasis on automating operations in order to overcome supply chain weak points and remain competitive. Automation has the potential to improve the efficiencies and synergies of the entire supply chain. Furthermore, by automating shipment and transit, logistics providers are able to use drones for delivery, as well as self-driving trucks and vehicles that can be on the road for extended periods of time. Before going to the major automation ways, first look at some benefits of automation in logistics.
Benefits of automation in the logistics
Automation benefits the logistics industry in a variety of ways. Logistics automation allows for much greater control within the organization. Some of the main benefits of automation in logistics are;
It reduces costs errors
Automation enables businesses to fully integrate inventory management into their ERP systems. It allows access to your address book, the introduction of fuel charges, and other types of automatic storage, all of which help to eliminate significant errors.
When entering multiple data points by hand from available documents, the possibility of making mistakes is much higher. All of these have serious financial ramifications. These include raising delivery costs, maintaining excessively high availability, and also future penalties for documentation errors, among other things.
It improves customer service
Many customers – both new and loyal – face constant challenges in the business world. Logistics automation strives to improve customer service. Controls the shipment much better while managing the supply chain. One of the most significant benefits of the software is that it allows complete tracking of the movement of goods from one location to another.
Your customer will be conscious of the final cost of shipping. It’ll also be able to get real-time updates on the shipment’s status, including where and when it will arrive.
Many businesses lose control of their internal processes to varying degrees. This is not good news for many new users of automated logistics software. You can quickly keep track of inventory, financial revenue and expense, freight costs, and so on.
You will be able to reduce the overall cost and, as a result, offer a more competitive rate. Automated software is adaptable and appropriate for any personalized business. They offer not only efficient but also cost-effective shipment delivery from beginning to end.
Major modes of automation in the supply chain logistics
Logistics automation is a broad term that encompasses all technologically possible functions. Each company has a Transportation Management System (TMS) for managing its transportation and freight departments. Assists all possible units in stock monitoring, planning, administrative, accounting, and management departments.
Back-office automation can benefit greatly from automation. Delivery orders, dock receipts, and sea waybills, for example, are all part of supply chain management processes. Employees in the supply chain department should constantly store and process these documents for a variety of reasons, which takes time.
Businesses can achieve nearly end-to-end document automation by combining artificial intelligence (AI) and optical character recognition (OCR). Back-office supply chain tasks can also benefit from robotic process automation (RPA). RPA will have a significant or moderate impact on supply chains, according to 44% of participants, by 2023. As a result, supply chain leaders must prioritize the execution of RPA in their supply chain back-office operations.
The most common mode of logistics in the world is road transportation. Almost all of the items in your kitchen cabinet were delivered via road logistics. Currently, the road transport industry is suffering from a truck driver shortage and is likely to predict this shortage to worsen in the future.
Transportation automation is a viable solution to the truck driver shortage crisis. More supply chain executives are focusing on this solution and investing in transportation automation. The market for self-driving cars is forecast to expand from $1.6 billion in 2021 to $11 billion by 2028. The transportation of supplies in the network can be easier through autonomous vehicles like autonomous trucks and drones.
Logistics automation seeks to address the ever-increasing transportation costs. It is precisely in the direction of implementing a policy that will result in financial benefits for shippers, as well as immediate cargo savings. Modern logistics software is of the highest quality. You will be able to receive carrier rates in real-time – online via the Internet – as a result of such integration.
Tusimple, a trucking company based in the United States, has completed 550 miles of driverless trucking and plans to expand its operations by 2023. The Parcelcopter from DHL is ready to revolutionize last-mile delivery with drone technology in transport automation. In the logistics and supply chain industry, going to invest in self-driving trucks can give you a competitive advantage.
Warehouse automation can assist supply chain leaders in overcoming the shortage problem. Furthermore, warehouse operations include both repetitive and high-risk tasks such as inventory management. Companies that automate such tasks can increase productivity, workers’ rights, sustainability, and reduce costs.
Despite the fact that many businesses (80%) have yet to implement warehouse automation in any way. studies indicate that the warehouse automation market will more than double to $30.5 billion by 2026. Warehouse automation will be a major trend in the supply chain and logistics industry by 2022. As a result, leaders should view it as a critical component of sustainable warehousing long term.
In conclusion, the main intent of this post is to elaborate on the significant ways of automation to influence the logistics industry. The role of automation is demonstrated in almost every field, even in the supply chain and logistics industry. There are a number of advantages of automation. The ability to free employees from repetitive and manual tasks is one of the most advantageous aspects of automation. In the case of supply chains, this frequently entails storing and processing a large number of documents. Automation can manage these processes more efficiently, freeing up employees to focus on more important tasks.
The role of transportation in the logistics sector is highly significant. A van truck and the invention of an autonomous are examples of transportation in the logistics sector. The problem may arise in this mode when there is a shortage or lack of drivers. The third mode of automation is in the warehousing sector. It also plays part in the success of this industry. These are the main areas where automation is influencing and evolving in near the future.