In today's modern logistics sector, the new normal of increased demand for faster and more accurate delivery time from eCommerce, development of new technology, and other related processes mean it is becoming paramount that companies begin to upgrade their strategies and operations.
The rise of automation technology in the logistics world is revolutionizing the way businesses run and operate and is responsible for the progression of many strategies companies take to profit and appeal to both customers and firms.
What is Automation Technology?
Automation technology otherwise known as automatic control is the utilization of machinery, control system, or software to help improve the efficiency of operations. These operations can be performed anywhere from a distribution center, warehouse and in other industrial processes in a supply chain such as transportation, distribution, procurement and forecasting.
Logistics automation stands out as one of the biggest advancements for the industry and is in high demand from logistic firms and those who manufacture alike.
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Automation Technology- Advantages
Cost
One of the headmost advantages of adopting an automated system into a supply chain process is the cost saving benefits it holds. Automation Technology replaces the need for human workers, and in turn cuts down on the many different drawbacks companies face when using human operators for such methods of labour.
To begin, the use of these technologies reduces the sometimes-unpredictable nature of using real life workers. This is due to the fact that workers are not always able to turn up to work and perform to 100% ability every single day, and has been proven that in the recent times due to Covid 19 that lack of workers meant a decrease in speed, efficiency and yield. The advantageous side of such machines allows work to be continuously produced without facing such errors, this immediately boosts productivity gains and therefore allows continuous profit to be produced where it otherwise might not.
In addition to this, the use of industrial automation cuts back on the high-cost businesses face when employing workers and therefore in the long run saves firm's money, which can then be put back into the supply chain.
Improved Customer Service
Customer satisfaction is at the heart of any companies' success and the use of automated systems allows that to be achieved. The use of such systems allows cargo to be processed faster and more efficiently, allowing firms to deliver them quickly along with the supply chain network, this is vital in the day and age of next day and same-day delivery.
Automated notifications of real-time cargo cut the chance of negative feedback as customers and businesses can become more aware of delays, visibility and other related processes their items go through. Implementation of such solutions into order specifications creates a multitude of benefits for those awaiting delivery and further consolidates companies' opportunities to gain and satisfy clients.
Improved Organisation and Control
Automation Technology also enhances the improvement of management and control in industrial environments through its controlled and quality functions. The system allows inventory to be tracked meaning less chance of stock discrepancies, as well as improvement in demand forecasting.
RTLS is also known as Real-Time Location Systems enables inventory to be under constant digital control, and therefore always be accounted for. This paired with WMS or Warehouse Management Systems which allows real-time adjustments and solution efficiency, means that overall material handling, cargo processing and, visibility and other components can be handled with speed and awareness. This allows businesses much better skills in handling their items, and in turn creates faster supply chain flow without the need for human intervention.
Automation Technology- Areas To Implement
One area automated system can be used is in managing shipping in the logistics sector for rail, air, long-haul and ocean environments. The use of such systems allows shipments to be loaded and unloaded from one area to another by industrial robots to allow easier and quicker operations to take place.
This not only cuts down in cost for need of manual workers, but also implements quicker functions when processing orders and cargo. Companies can thrive due to the benefits reaped from such technologies taking over their supply chain process, and overall business strategies.
Another area to implement automation solutions without doubt is in the area of parcels in your supply chain. This helps companies remain competitive, as they increase the number of parcels they carry and ship out. By using automation technology customers and firms alike can be aware of the visibility of their shipment, this allows customers to also schedule orders when best fits them without needing exterior help. In relation to these businesses can gain further traction from this benefit.
Such Technology also allows logistics firms to keep track of efficient routes for delivery, as well as when items have been delivered to their approximate destination. It is also said that automation technology is responsible for increased productivity in parcels services through the increase of shipment unloading, from 700 items per hour now up to 3000.
Automation in logistics: Big opportunity, bigger uncertainty
Automation Technology- A Forecast For The Future
The future of automation solutions and technology is predicted to be a bright one, with new technologies meaning quicker speed and more efficient solutions when it comes to having more effective routes to the market. The product of this growing success could mean the logistics industry may be looking towards an industrial revolution of sorts.
Automation technology is progressing so much that it was also found that over 50 technologies could further automate some form of the supply chain, meaning that by 2030 most operations in the supply chain process and logistics industry could be a product of industrial automation. This historical development is a result of AI being integrated into the performance of more simple and persistent tasks, otherwise overlooked by human intervention.
Succinctly, automation control systems stand out as a big opportunity for further development and advantage within the logistics sector and companies as it provides a greater organization on larger-scale operations, supply chain operations and optimization of related processes. It is also proving positive for businesses saving money by having operations carried out for just a fraction of the price.
Moreover, companies can begin to be more proactive when managing their supply chains and worry less about possibilities of error and disruption to their income and customer satisfaction. Automation technology is beginning to become the answer for many firms' successes, as human operations are slowly turned away from looking towards a more efficient and cost-effective future for the logistical sector and its use of technology.
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