{"id":5105,"date":"2023-10-10T12:46:06","date_gmt":"2023-10-10T12:46:06","guid":{"rendered":"https:\/\/blog.verbat.com\/?p=3810"},"modified":"2024-05-24T12:37:53","modified_gmt":"2024-05-24T12:37:53","slug":"supply-chain-efficiency-the-role-of-automation-verbat","status":"publish","type":"post","link":"https:\/\/www.verbat.com\/blog\/supply-chain-efficiency-the-role-of-automation-verbat\/","title":{"rendered":"Supply Chain Efficiency: The Role of Automation"},"content":{"rendered":"\n

Embracing Automation in Supply Chain Management<\/strong><\/h3>\n\n\n\n

In the current business environment, automation is a critical component that enhances efficiency and effectiveness, especially in supply chain management. From automating data capture to warehouse operations, leveraging the Internet of Things (IoT)<\/a>, and utilizing predictive analytics, automation technologies are reshaping the way businesses operate and succeed.<\/p>\n\n\n\n

Diverse Forms of Supply Chain Automation<\/strong><\/h2>\n\n\n\n

1. Automating Data Capture<\/strong><\/h4>\n\n\n\n

In the quest to enhance profitability, data\nautomation is a game-changer. Data entry, one of the most labour-intensive and\nerror-prone processes in the supply chain, involves processing numerous\ndocuments daily.<\/p>\n\n\n\n

Data capture automation leverages technologies\nlike Optical Character Recognition (OCR) to extract information from digital or\nscanned documents swiftly and accurately, significantly reducing manual labour\nand potential errors.<\/p>\n\n\n\n

2. Automating Warehouse Operations<\/strong><\/h4>\n\n\n\n

A significant number of companies (55%) are\ninvesting in warehouse robotics due to their numerous benefits such as enhanced\nproductivity and order accuracy. They also minimise worker injuries as robots\nhandle the heavy lifting.<\/p>\n\n\n\n

Warehouse automation encompasses various\nmachines like collaborative robots, smart forklifts, automated storage &\nretrieval systems (AS\/RS), driverless vehicles, automated sortation systems,\netc.<\/p>\n\n\n\n

3. Internet of Things (IoT)<\/strong><\/h4>\n\n\n\n

IoT devices can monitor stored goods, report on\ntheir location and condition, and share data. They are particularly useful for\ntracking goods sensitive to temperature or humidity, crucial in the food and\nretail industries.<\/p>\n\n\n\n

While IoT devices require wireless networks\n(WiFi, Bluetooth) and trained staff to function correctly, the potential ROI\nfrom optimising inventories and reducing waste makes it a worthwhile\ninvestment.<\/p>\n\n\n\n

4. Predictive Analytics<\/strong><\/h4>\n\n\n\n

Modern supply chain management adopts a\nproactive approach as opposed to the reactive nature of legacy supply chain\nmanagement. Predictive analytics plays a part in this by identifying future\ntrends via data analysis. This increasingly popular automation technology has a\nwide range of uses from demand forecast to pricing strategy and inventory\nmanagement.<\/p>\n\n\n\n

Current Disruptors in Supply Chains<\/strong><\/h3>\n\n\n\n

Global supply chains have faced multiple\nunexpected events in recent years, emphasising the importance of frequent\nscenario planning for adaptability in the face of risks. Here are some of the\nmost common supply chain disruptions today:<\/p>\n\n\n\n

Geopolitical Changes and Conflicts<\/strong><\/h3>\n\n\n\n

Geopolitical changes and conflicts are\ncurrently at the top of the list. From the war in Ukraine disrupting major\nshipping lanes to dwindling output from Chinese manufacturing, companies are\nreevaluating their global supply chain choices.<\/p>\n\n\n\n

COVID-19 Pandemic<\/strong><\/h3>\n\n\n\n

The COVID-19 pandemic has upended international\nsupply chains, with companies struggling to catch up ever since. As some\nnations sought to revitalise their economies by focusing on ESG (environmental,\nsocial, and governance) efforts, demand increased for certain raw materials.<\/p>\n\n\n\n

Labour Shortages<\/strong><\/h3>\n\n\n\n

Labour shortages continue to affect supply\nchains, causing a lack of shipping crews, long-haul truckers, among other\nchallenges. This employee shortage affects more than just transportation and\nlogistics.<\/p>\n\n\n\n

However, scenario planning can only get you so\nfar. The events that bring the most pain are often the ones you don\u2019t see\ncoming. A good example of this is when the Ever Given ship blocked the Suez\nCanal for six days in March 2021\u2014this event cost the global economy roughly $60\nbillion in trade.<\/p>\n\n\n\n

Practical Examples of Supply Chain Automation<\/strong><\/h3>\n\n\n\n

Automation can play a role in nearly every part\nof a supply chain\u2014from office tasks to customer service. Let\u2019s explore examples\nof how supply chain automation applies to different business challenges:<\/p>\n\n\n\n

Manufacturing Shop Floor Use Cases<\/strong><\/h4>\n\n\n\n

Manufacturing companies have long adopted\nautomation tools such as industrial IoT devices to improve production:<\/p>\n\n\n\n