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How supply chain automation is changing the future

Feb 21, 2022

After the supply chain issues of the past year, most businesses are concerned with implementing measures to mitigate these problems moving forward. Developing these structures will prove essential across industries, as Zippia found supply chain disruptions can cause a hefty 62% loss in finances — possibly worse if issues are highly mismanaged.

As organizations continue to recover from disruptions and demand remains high, it's advantageous to focus on proper supply chain management. One of the most important aspects of improved management will be implementing automation processes where they're applicable.

In terms of supply chain management, automation can provide a host of benefits. These include:

Increased transparency and operation visibility

Improvements in technology have led to beneficial systems and applications being introduced, however, these new technologies can be less than helpful if data and information are too sporadic. Automation is an effective approach to connect all systems to establish a centralized location of information. This can provide workers with access to real-time data, as well as a more holistic view of operations throughout the process. Not only is improving visibility critical for more efficient operations, but it's also valuable for customers to monitor progression along the way.

Reduced repetitive and manual tasks

One of the most advantageous elements of automation is the opportunity to free employees from repetitive and manual tasks. In regards to supply chains, this often involves storing and processing countless documents. Automation can efficiently manage these processes, opening up employees to focus on more essential work. And, as a result of these systems taking over the majority of menial work, organizations can expect to see a decrease in operational costs, a substantial reduction in human error and improved inventory management.

Improved ability to respond to the unexpected

After the constant supply chain hurdles of the past few years, companies are quickly realizing the necessity of being prepared for anything. While the specific needs of organizations certainly vary, automation platforms can help businesses stay connected to information for individual adaptability along the way. This consistent connection to vital information and data will be invaluable for navigating the evolving supply chain.

Ensured regulation compliance

Meeting compliance requirements can feel overwhelming in the post-COVID world. But, automation is useful to ensure your organization is meeting industry standards — including standardized pricing, products and vendors. This often involves implementing Enterprise Resource Planning in your automation systems. The integration of core business processes can greatly improve operations — especially in terms of scheduling and storing data — while simultaneously providing organizations the oversight they need to continuously meet industry standards.

While businesses and industries continue to work around ongoing supply chain disruptions, automation will become fundamental to operational efficiency and overall management. In fact, NetSuite reports the supply chain management software market is projected to grow from $15.85 billion in 2019 to $37.41 billion by 2027. These projections highlight that automation was once an extra measure to improve operations, but it's quickly becoming a necessity to keep pace with competition.

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