We live in a period of upheaval, which means that businesses need to be able to adjust swiftly to new developments.
The traditional methods of managing supply chains can no longer keep up with the ever-increasing levels of demand. The implementation of automation technology is essential to achieving a strategic advantage in the marketplace.
You are going to find out why supply chain automation has become vital in this post, as well as how data capture automation may help you optimize your operations, save money, and make your company more competitive.
What Is Supply Chain Automation?
The complete process of creating and selling items is referred to as the supply chain. This process begins with the purchase of raw materials and continues through manufacture, storage, distribution, delivery, and recovery. It is vital, in order to maintain a competitive advantage, to optimize your supply chain to be as efficient as possible.
The term “supply chain automation” refers to the utilization of contemporary technology that automate formerly manual processes with the purpose of streamlining workflows and improving operational effectiveness. Among these technological advancements are:
- Warehouse robotics
- Internet of Things
- Artificial Intelligence
- Machine learning
- Predictive analytics
- Digital process automation
- Optical Character Recognition
- Data entry automation
- Etc.
Automation of document processes is more than just a passing fad; it’s a game-changer and a requirement. In today’s rapidly evolving world, businesses that continue to depend only on outmoded procedures will, sooner or later, find themselves unable to compete successfully.
Legacy Processes with No Automation Are Outdated and Costly
The conventional supply chain travels in a straight path from the suppliers to the final customers and is dependent on on-site operations such as paperwork, stock and inventory tracking, tracking and verification of items, etc.
On the other hand, the strategies that ensured success in the past aren’t nearly as successful as they once were and will eventually become totally irrelevant. The world has already transitioned to a demand-driven paradigm, in which customers place orders more often and anticipate having access to real-time data along with expectations of quick delivery.
The inability of legacy processes to keep up with increased demand levels is a simple fact. In addition to this, they are expensive and prone to making mistakes. Your consumers may end up giving their business to a rival company if they experience problems such as misplaced or delayed merchandise.
Because of this, continuing to use outdated procedures might be detrimental to the success of your company. Increasing numbers of businesses are adjusting their operations to account for this fact. According to the findings of a survey conducted by Raconteur, 41% of supply chain experts have either bought a supply chain or have plans to do so within the next year.
The Economic and Scalability Benefits of Automating Your Supply Chain
Not only can automating data-related business activities help your company cut expenses and improve the efficiency of its supply chain, but it may also make it easier for the company to grow. Here is how it works:
Automate manual chores. One of the activities that consumes the most time in supply chains is the processing of paperwork. Even worse, it may cause bottlenecks in the process. You may save a significant amount of time and money while also making your supply chain run much more smoothly if you automate processes that were previously performed manually. In addition, workers are free to concentrate on more fruitful activities, such as customer relationship management and business development.
Access to information and complete openness. Employees in a variety of departments and locations may remain on the same page thanks to visibility, which helps reduce the likelihood of order and delivery mistakes. In a similar vein, shipping automation enables increased transparency, which means that consumers can monitor the status of their purchases and get information that is current at all times.
Data that is both accurate and usable. The interconnection of data generated by automated processes contributes to the destruction of data silos and ensures prompt access to accurate data. Leaders are able to swiftly make educated decisions based by trustworthy data, such as demand planning, and develop dynamic reports that are simple to share with their teams.
Service to customers that is both better and faster. Through the use of automation, you can assure quick delivery times, reasonable rates, and accurate order information at all times. Customers nowadays have higher expectations than in the past; thus, it is essential to not only satisfy but even surpass those expectations in order to survive in your market.
It is already abundantly obvious that automation in supply chains offers several benefits. But what precisely does it mean to automate something? Now that we have that out of the way, let’s take a look at some of the most important applications of automation.
Various Forms of Automation Used in Supply Chains
There are many different kinds of automation. Listed below are some of the automation technologies that have seen the most widespread use:
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Data capture automation
Automation of processes relating to data may make a significant impact on a company’s bottom line during periods in which it is essential for firms to cut costs as much as possible.
Due to the sheer volume of paperwork that must be handled on a daily basis, including but not limited to invoices, inventory lists, buy and sales orders, shipping notes, and bills of lading, data entry is one of the most labor-intensive and error-prone operations in the whole supply chain. On top of that, not only is there a limit to how quickly employees can manually enter data, but their capacity to remain focused and productive will inevitably decrease the longer they continue examining documents and entering data. This is because there is a limit to how quickly employees can enter data manually.
Thankfully, Optical Character Recognition (OCR) and other technologies that are conceptually similar can help automate the process of extracting information from scanned or digital copies of documents. This procedure will just take a few seconds of your time and may be carried out using all of the documentation that you possess.
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Automated systems for the warehouse
Because of the various benefits they offer, such as higher production and order accuracy, businesses are investing in warehouse robots. To be exact, 55% of companies are investing in warehouse robotics. Because robots take care of the proverbial heavy lifting, they help minimize the number of worker injuries that are caused by accidents or weariness.
The term “warehouse automation” refers to the usage of a number of different devices, including but not limited to collaborative robots, smart forklifts, automated storage and retrieval systems (AS/RS), autonomous trucks, automated sortation systems, and so on.
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Things Connected to the Internet (IoT)
Devices connected to the internet of things are able to keep tabs on stored items, report on their position and status, and exchange data. They help managers of supply chains cut down on paperwork while also allowing better tracking of the flow of commodities. They are also very helpful for tracking items that are temperature or humidity sensitive, which is something that is vital in the food and retail industries.
IoT devices require wireless networks (such as WiFi and Bluetooth) and educated employees in order to function correctly, but the potential return on investment (in terms of optimizing inventory and eliminating waste) makes the investment more than worthwhile.
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Analytics predicative of the future
The technique taken by legacy supply chain management is often reactive, meaning that it waits for client demands, whereas the approach taken by contemporary supply chain management is proactive. The identification of upcoming trends through data analysis is one of the contributions that predictive analytics makes to this endeavor. This rapidly growing automation technology has a broad variety of applications, including demand forecasting, pricing strategy management, and inventory control, to name a few.
The Advantages of Using Technology to Automate Supply Chain Data Capture
Did you know that mistakes made while entering data in areas such as procurement, supply chain, and other areas cause organizations to lose over $600 billion annually?
Automated data capturing offers a potential solution to a significant portion of this inefficiency. To be more specific, it enables you to:
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Improve efficiency in the process of data collecting. Automation makes procedures in the supply chain more streamlined while simultaneously boosting data accuracy, which eliminates the possibility of invoicing backlogs and order mistakes. In addition, this improved capacity for processing will make it possible for you to take on additional business.
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Spend less money. Automation saves hundreds of hours of labor that would have been spent manually inputting and verifying data. In addition to this, it lessens the risk of making mistakes, which in turn reduces the likelihood of suffering financial losses and the expense of making corrections.
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Reduce the amount of human mistake. As the size of your company increases, so does the quantity of data that has to be processed; this, in turn, will definitely result in an increase in the number of mistakes and the total cost. Even the most diligent workers will inevitably slip up at some point or another. Automation, when properly configured, reduces the likelihood of errors caused by humans and increases the degree to which orders are accurate. This, in turn, boosts customer happiness and loyalty.
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Get easier access to data. In order to make it possible to share paper documents, you will need to scan them, fax them, or, in certain instances, send someone to another place in order to deliver them. The digitalization of papers, on the other hand, makes the transfer of data relatively simple, which in turn saves a significant amount of time and work for everyone concerned.
Another advantageous feature of this sort of supply chain automation is that its implementation is the simplest and most expedient among the available options.
Final Thoughts
In today’s hypercompetitive business environment, every step of the supply chain needs to be optimized for optimal productivity in order to remain competitive. You will be able to take on more business and provide a higher level of satisfaction to your clients if you automate the collecting of data along the supply chain. This will save you a significant amount of time and money.
Amit Gaurav, is a 20-year veteran of the information technology industry, serves as Sr. Director of the MENA and APAC for Routeget Technologies Limited. He is responsible for the overall performance of the company’s operations in the entire APAC, MENA, and Indian subcontinent.
In this role, Amit is responsible for the long-term strategic development and execution of the company’s global operations and engineering efforts. Among his key priorities is ensuring the alignment of core business functions, including corporate financials with global supply chain operations and delivering continuous improvement – Lean – across the operations and engineering functions. Other focus areas include establishing and maintaining the policies and initiatives related to Quality, Health, and Safety.
Amit Gaurav has a wealth of experience in business management, new business acquisition, and account management. His success and extensive experience in Enterprise solutions suite and business development management are power-packed.
A family man, proud father of cutie “Aahana” and a through-and-through Barcelona & CSK supporter, Amit enjoys nothing more than kicking back at the weekend to play games with his daughter.
Amit Gaurav, is a 20-year veteran of the information technology industry, serves as Sr. Director of the MENA and APAC for Routeget Technologies Limited. He is responsible for the overall performance of the company’s operations in the entire APAC, MENA, and Indian subcontinent.
In this role, Amit is responsible for the long-term strategic development and execution of the company’s global operations and engineering efforts. Among his key priorities is ensuring the alignment of core business functions, including corporate financials with global supply chain operations and delivering continuous improvement – Lean – across the operations and engineering functions. Other focus areas include establishing and maintaining the policies and initiatives related to Quality, Health, and Safety.
Amit Gaurav has a wealth of experience in business management, new business acquisition, and account management. His success and extensive experience in Enterprise solutions suite and business development management are power-packed.
A family man, proud father of cutie “Aahana” and a through-and-through Barcelona & CSK supporter, Amit enjoys nothing more than kicking back at the weekend to play games with his daughter.
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