Automation in Supply Chain Management: Trends & Technologies

The supply chain industry is undergoing a massive transformation, thanks to automation. From reducing costs to improving efficiency, automation is reshaping how businesses manage their operations. In this article, we’ll explore the latest trends in supply chain automation, the technologies driving these changes, and how they’re impacting businesses worldwide.

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What is supply chain automation?

Supply chain automation is the application of technology to automate and simplify processes such as order processing, inventory management, and logistics to enhance efficiency. Automation of processes saves time, reduces errors, and enhances efficiency in general.

For example, order picking and order packing are being done by robots in automatic warehouses, and demand planning and inventory management are being done by AI-based solutions. These are no longer dreams but already a reality to drive the future supply chain.

The Key Trends of Supply Chain Automation

1. AI and Machine Learning

AI and ML power supply chain automation. They are taught with huge data sets and can predict demand, route optimization, and even disruptions.

For example, online retail businesses like Amazon use artificial intelligence to predict demand from customers and even optimise products offered. AI-powered supply chain computer systems can lower forecast error rates by as much as 50%, McKinsey says.

2. Robotic Process Automation (RPA)

Another supply chain transformer is RPA. RPA is about the automation of invoice reconciliation, data extraction, and order tracing. RPA offers relief from tediousness to human resources and allows them to focus their energies on the strategic end.

53% of organisations have already implemented RPA, finds a Deloitte survey, with nearly all of them realising significant improvement in terms of efficiency and precision.

3. Internet of Things (IoT)

IoT sensors and GPS trackers monitor the real-time movement of the supply chain. They track from warehouse stocks to destinations so companies can react in time to issues.

Walmart, for example, has IoT sensors that keep track of the temperature of perishables in transit so that they remain fresh when they reach their destination.

4. Blockchain for Transparency

Blockchain is rapidly becoming popular in supply chain management because of the power it possesses to make the supply chain transparent and traceable. Because it can have an unhackable, secure record of transactions, blockchain helps companies trace the product from source to destination.

It is particularly ideal for pharma and food, where traceability is necessary to add security and regulation.

5. Autonomous Trucks and Drones

Autonomous drones and trucks are revolutionizing logistics and last-mile package delivery. UPS and FedEx also use drones to test package delivery in small rural towns, with the delivery implemented in autonomous trucks.

Logistics costs will decline by 40% by the year 2030 as a result of autonomous trucks, a report published by PwC has shown.

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Technologies Driving Automation

1. Cloud Computing

Cloud platforms enable end-to-end collaboration and real-time sharing of data across the supply chain. Cloud platforms offer enterprises the scalability to expand or contract in order to match fluctuating demand.

For example, Google Trends have indicated increased demand for cloud supply chain solutions, which parallels their increasing popularity.

2. Advanced Analytics

Advanced analytics software helps companies make decisions through trends, patterns, and anomaly analysis. Cost savings, cost reduction, and customer satisfaction are key functionalities provided by the software.

3. Digital Twins

A digital twin is a virtual copy of an operating supply chain. The digital twin allows companies to plan and simulate without interfering with actual-world operations. Digital twins are utilised most in planning and risk management.

 

Supply Chain Management Automation Advantages

• Increased Efficiency: Elimination of errors and speed-up of processes.
• Cost Benefits: Processes become streamlined and help businesses save mounds of money.
• Improved Customer Experience: Rapid order fulfilment and lower shipping time translate to happy customers.
• Improved Decision Making: Real-time information and analytics translate to smart, informed decision-making.

Restrictions and Limitations

While automation is endowed with many strengths, it is also endowed with weaknesses. They are the expensiveness of their installation, the need for skilled human capital, and the threats of replacing the human capital. Companies are forced to spend their time daydreaming about them in an attempt to embrace automation technology.

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Future Trends in Supply Chain Automation

In the coming years, even more disruptive technologies will emerge. Quantum computing, 5G, and edge computing are just a few of the technologies that will dominate supply chain automation. Sustainability will also be one of the forces, and companies will become more obsessed with green practices and technology.

Automation is not something to be cherished but a reality to survive within the ever-changing world of the present. In leveraging cutting-edge trends and technology, corporations can redefine supply chains, slash costs, and provide the class-best customer experience.

Stay ahead and check out Google Trends and other related websites to be aware of supply chain automation today.