Top Ways to Improve Supply Chain Processes Through Automation

 Automation is fast becoming an important part of our daily lives in 2022, with robots performing surgeries and computer sensors measuring pollution levels in engine exhausts.

The global supply chain management and logistics industry is no stranger to automation either. A BCI study suggests that before the year’s end, only 17% of logistics companies will be out of the automation loop.

This can lead you to wonder—why is there a craze surrounding the automation of supply chain processes, and what purpose can it serve? Let’s find out!

What do you mean by supply chain automation?

The term supply chain automation is quite self-explanatory. It refers to the use of different digital and computer technologies to cater to different aspects of the supply chain management process.

Supply chain automation can provide a 360o overview of your supply chain operations and streamline them. Automating supply chain tasks can also help you save time, improve operational efficiency and make money.

How does an automated supply chain differ from a conventional supply chain?

The conventional supply chain has undergone tremendous changes over the past few years. Automation of different supply chain operations has simplified complex logistics networks and helped companies cater to increasing demands.

With automated supply chains becoming the norm, it is important to understand the difference between both supply chains. This can help you understand the significance of automating the supply chain processes at a logistics company.

Here are the primary differences between a traditional supply chain model and an automated supply chain.

1. A conventional supply chain model primarily focuses on the production and supply of end products. However, an automated supply chain is also capable of handling customer interaction and engagement in addition to product deliveries.
2. An automated supply chain is more of an intra-connected network of vendors and teams interacting with each other. This is in contrast to a conventional model, which resembles a straight line or chain.
3. A conventional supply chain seldom has strategies that can enhance the product value. Automating the chain can reduce the time required to design and develop products which makes it much more feasible to incorporate customer expectations at a steady pace.
4. Automated supply chains are very rarely prone to human errors or fallacies, which can significantly cut losses and expenditure.
5. While a conventional supply chain does account for multiple partnerships, an automated model is more suitable for collaborations and industry alliances.

Why should you focus on automating the supply chain in a logistics company?

The advantages of automating supply chain processes in a logistics company are multi-fold. Automation can allow supply chain managers to expand company operations, double down on production, and reduce expenditure caused by manual errors.

Here are the primary benefits of adopting an automated supply chain model for a logistics business:

1. You can save on resource effort and time spent on menial or manual tasks.
2. You can improve the transparency and visibility of different operations.
3. You can cope with sudden demands to ramp up production or delivery.
4. You can expect better compliance with domestic and international regulations.
5. Your supply chain processes can become more resilient to catastrophic events or market fluctuations.
6. You can increase the overall productivity and efficiency levels of different supply chain operations.
7. An automated system can facilitate better collaboration with different vendors and businesses, which can help you scale your company.

How can a company achieve supply chain automation within a short time?

Adopting a technology-driven approach to your supply chain operations can help you streamline them and spike your profits. Contrary to popular belief, there are multiple ways to achieve supply chain automation, including:

1. Using project management tools to track and streamline purchasing and procurement operations and documentation.
2. Using automated shipping notifications to enhance customer service.
3. Managing shipping documents through an electronic archive.
4. Use scheduling apps to streamline supply payments.
5. Using invoicing apps and payroll software to address slow invoice turnaround and high DSOs.
6. Using autonomous self-driving truck systems to overcome a shortage of qualified truck drivers.

What are the different aspects of the supply chain that you can automate?

According to a study published on AImultiple.com, the supply chain automation market is projected to grow at a rate of 10.3% by 2026. Automation of supply chain processes can help companies remain competitive in the market and enhance their customer experience.

Here are some of the key areas to focus on when you are considering automation in a logistics company.

1. Back-office tasks like keeping track of delivery orders and dock receipts.
2. Transport operations such as trucking and freighting.
3. Warehouse operations such as loading and storing delivery supplies and surplus products.

The best way to be on top of supply chain automation technologies is to follow the latest industry trends within the logistics domain. Relevant supply chain management courses can help you keep yourself updated with the latest happenings in the industry.

The IBAT College Dublin offers a great Diploma in Supply Chain Management that can give you an extensive knowledge of supply chain and logistics. It can also help you keep up with innovative solutions for procurement, product development and timely deliveries.

This supply chain management course in Ireland can also help you understand how AI-empowered supply chain models have positively impacted conventional procurement and delivery approaches and strategies.

Click here to view other features of this expansive supply chain management programme at IBAT today!