Automation has been playing a key role in transforming the manufacturing industry, from supply chain management (SCM) to logistics. So what does supply chain automation refer to? How can automation and the Internet of Things (IoT) change logistics and supply chain management?
Automation refers to the process of utilizing technologies to automate manual work. This can be achieved by using different applications, APIs, or simply by connecting data using IoT. The manufacturing industry is encompassed with multiple types of equipment, steps, and processes that lead to a finished product – supply chain and logistics play a vital role in this process. To stay competitive, businesses must improve their workflows to increase efficiency, and automation can help achieve that.
By 2023, at least 50% of large global companies will be integrating AI, advanced analytics, and IoT in supply chain operations. -Gartner
Supply chain automation refers to leveraging digital technologies like Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) to improve supply chain efficiency, automate, and streamline processes.
Automating the supply chain lowers operational costs of product and service delivery. Whether automating an entire supply chain or just a piece of it, decreasing human labor can increase profits and boost productivity and process accuracy.
There are many benefits to adopting supply chain automation. Let’s check out 7 ways this transformative process can improve business.
Supply chain processes include necessary document processing a data entry, such as organizing and processing order receipts, delivery details, product details, invoices, etc. Sorting this paperwork can be time-consuming. Automating these tasks can increase the speed of completion, improve work accuracy by eliminating human error, and increase efficiency.
The conventional supply chain lacks transparency. Automating a supply chain connects all systems to create a centralized location that provides real-time data, status updates, and one single source of truth for the entire supply chain. This helps retrieve data and allows workers to monitor progress. It also provides customers with an overview of their order progress.
With the help of AI, organizations can track their delivery vehicles in real-time. They can access information about the products, shipping address, and delivery details, and receive notifications. Companies also get notified about potential delays due to circumstances such as bad weather, traffic jams, or vehicle issues. This allows manufacturers to optimize transportation, reducing delivery time and cost.
We can’t predict what the future holds, but by integrating data with automation platforms, companies can make agile decisions to unexpected scenarios. This helps organizations respond quickly to business needs.
Different manufacturing sites worldwide follow various health and safety regulations. In such scenarios, automating business process workflows and documenting them is ideal to ensure regulations are met. Additionally, automation offers real-time visibility into the supply chain, helps identify issues, prevent them, and improve risk management.
Customer satisfaction is directly impacted when the time between ordering and fulfillment is reduced. Automation allows companies to better serve customers by providing them updates on order statuses in real-time.
Automation can enhance inventory and order tracking and help reduce stock inconsistencies. Changes are automatically updated so employees know which products are available and which are out of stock. Automating the supply chain improves demand forecasting with automated supply chain procedures.
Logistics and SCM play a crucial role in the manufacturing industry. The supply chain involves critical demand planning, procurement, inventory, and logistics processes. Logistics includes activities such as inventory control, warehousing, and transport management. IoT is playing a crucial role in the manufacturing industry. Let's uncover some of the aspects of using IoT in the supply chain.
IoT devices have changed the way supply chains are managed. With IoT, it's now easier to figure out where items are, how they're stored, and when they will arrive at their final destination.
Here’s how automating logistics with IoT can streamline manufacturing.