MANY ORGANIZATIONS are implementing or considering investments in automation solutions. The goal for most? To drive workforce productivity and agility, which was cited by 60% of respondents to a recent IBM survey. “For too long, we’ve thought about supply chains as cost centers,” says Rob Cushman, senior partner, supply chain transformation, with IBM Consulting. At their best, however, supply chains are growth drivers, he adds. Automation is key to corporate initiatives to drive growth. As more supply chains digitize, they can deliver a wealth of data. A lack of automation, however, can keep supply chain leaders from accessing real-time, enterprise-wide information that can help them identify operational inefficiencies. Here’s a look at the benefits possible from automating the supply chain.
solution further maximizes space utilization and cuts transportation costs. These benefits have gained prominence as attention to sustainability increases. “More companies are aiming to streamline processes and align automation efforts with initiatives that address environmental concerns,” notes Craig Moore, vice president, sales, North America, with K Ö rber Supply Chain. Gain Control Once an organization has data, it needs to convert it to information. This may take the form of a supply chain control tower, which Gartner defines as “a combination of people, process, data, organization, and technology that captures and uses (close to) real-time operational data from across the business ecosystem to provide enhanced visibility and improve decision making.” By assembling information from across a supply chain, control towers can develop “one source of truth,” says Barry Bradley, head of supply chain with Crisp, a collaborative commerce solutions provider.
Enhance Inventory Visibility Many benefits possible with automation stem from the visibility it can provide. Visibility and automation are key tools for companies facing pressure from customers, as well as internally, to cut inventory and costs. “CFOs are closely monitoring supply chain and logistics operations,” says Ashutosh Dekhne, partner and head of Americas supply chain operations and tech practice with EY. “Many are questioning the labor required to make and ship items.” Automation can streamline processes, allow workers to contribute strategically, and cut costs. The inventory visibility made possible through automation helps companies avoid overstocking products that are at risk of growing obsolete, or understocking hot-selling items and losing sales. Accelerate Speed to Market Companies can leverage automation to rev up speed to market. When they leverage dynamic planning solutions and employ automation, companies can act as soon as they receive market signals. “Conversely, if a company takes several days to plan, it negates the benefit of getting the demand signal quickly,” Dekhne says. Attract Workers By making many warehouse and distribution center positions more appealing, automation can help companies tackle the current labor shortage. “Nobody wants to work in a
facility where the easiest thing to use is their cell phone and everything else is 15 years behind the curve,” Dekhne says. Meet Sustainability Goals Even once products are in transit, automation has a role to play. Vehicle routing and scheduling solutions enhance full truck utilization and optimize routes, reducing emissions, among other benefits, says Robert Recknagel, vice president, logistics and manufacturing with Flexis, a provider of supply chain solutions. Integrating a three-dimensional container-loading
Manual inventory management methods are no longer productive. Many companies are incorporating Inventory visibility technology into their omnichannel fulfillment operations to better predict inventory flows and reduce operating costs.
34 Inbound Logistics • February 2024
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