By Arshdeep Mundi, Executive Director, Jujhar Group
With increasing globalisation and consumer demand in today’s world, supply chains and logistics have expanded into large and complicated ecosystems. These networks, which connect suppliers, manufacturers, distributors and retailers across the world, are essential for ensuring that goods reach effectively from production unit to consumers. Their critical role is visible in cost savings, simplified operations and increased customer satisfaction.
However, with time, challenges like bottlenecks, delays and interruptions have become common in the supply chain, caused by natural calamities, political instability or labour shortages. These issues may cost organisations money, cause delivery delays and even harm their reputations. Moreover, it also results in higher pricing and unsatisfied expectations for customers. This, in turn, necessitated the integration of automation in supply chain and logistics operations.
Understanding supply chain automation
Supply chain automation is the use of diverse technologies to manage various operations, assisting humans with manual and repetitive actions. It has the potential to alter supply chain management by simplifying processes of manufacturing, supply chain and logistics. Today, businesses can function at scale and ensure more precise and dependable operations by leveraging technology like robots, artificial intelligence (AI) and data analytics. Furthermore, supply chain automation enables organisations to overcome bottlenecks and disturbances beyond human control, guaranteeing operational efficiency. Consequently, around 45 per cent of businesses globally have adopted automation in the supply chain, as reported by G2.
Here’s how automation helps organisations tackle supply chain bottlenecks:
Enhanced inventory management
Real-time inventory management systems and other automation solutions assist firms in maintaining appropriate stock levels. By utilising sensors and IoT (Internet of Things) devices, organisations can track stock movement, avoid overstocking and receive notifications about inventory shortages. They can also use automated inventory management to adapt swiftly to evolving customer preferences while ensuring that items are constantly accessible without overburdening storage capacity.
Simplifying warehousing
Warehousing holds a key value in the supply chain and delays at this stage can have diverse consequences. In order to prevent such issues, organisations have started using automated guided vehicles and robotic systems to significantly speed up the picking, packaging and sorting of items in warehouses. Additionally, automated storage and retrieval systems (AS/RS) can save the required time to identify and retrieve things, leading to overall warehouse efficiency.
Predictive maintenance
Sometimes, manufacturing operations encounter bottlenecks due to machine faults or unexpected maintenance. Automation, along with predictive analytics, possesses the capability to forecast when equipment can fail and plan its maintenance accordingly. This further aids organisations in eliminating unplanned downtime, allowing manufacturing to complete smoothly and decreasing production delays.
Improved logistics
One of the significant uses of automation in supply chain and logistics is route optimisation and autonomous mobility. Today, with GPS-enabled devices, organisations can determine the most effective delivery routes while analysing real-time traffic, weather conditions and fuel use. Likewise, the most recent technologies like drones and self-driving trucks are poised to transform last-mile delivery, providing swift and more efficient transportation of products.
Better decision making
Automated systems can analyse large volumes of data in real-time. They can gather, analyse and give actionable information, assisting organisations to make educated decisions. Whether it’s about rerouting shipments due to bad weather or altering production schedules to meet increased demand, automation helps organisations adapt effectively and decrease disruptions.
In addition to the aforementioned perks, supply chain automation assists organisations to stay ahead of the competitive curve. By employing automated data analysis and adapting swiftly to evolving trends, businesses can gain new opportunities and effectively mitigate risks. As a result, they become more resilient and capable than their competitors, who rely on traditional supply chain approaches.
As industries become increasingly interconnected, the demand for rapid, reliable supply chains will continue to witness a surge. Automation remains no longer a future notion; instead, it has evolved as a critical component of contemporary supply chain management. Businesses that embrace automation may not only minimise bottlenecks but also establish a robust and adaptable supply chain capable of meeting the demands of a quickly changing global market.
In conclusion, the integration of automation in supply chains not only enhances operations but also helps organisations build critical strategies for mitigating bottlenecks. Its benefits have further left organisations with two options, either to automate or bear the risk of being left behind.