Supply chain management evolves, and supply chain leaders have a grand opportunity to leverage supply chain automation and drive success. However, many leaders approach automation with a poor understanding of its capabilities, not to mention potential risks during implementation. To put the real power of automation (including its complimentary benefits through advanced AI, machine learning and big data) to work within the supply chain, leaders need to understand the barriers to implementing such processes, how automation enables competition, and its benefits.
Today’s supply chain leaders face considerable uncertainty, and Amazon’s unrelenting push for world domination shows no signs of stopping. Unfortunately, significant barriers to supply chain automation still exist. As explained by Supply Chain 24/7, companies struggle with evaluating investment options. Executives may rely on the wrong criteria for new technology evaluation and implementation, and of more serious concern, is the execution of poor investment strategies, such as a mediocre integration. This can render savings obsolete. However, all agree that automation is essential to supply chain success, and the key lies in understanding its value.
As explained by Supply Chain Digital, automation will pave the way for robotics within warehouses and throughout the supply chain. As digital transformation continues around the globe, those that fail to meet the same customer expectations of Amazon, Walmart, Target, and others will risk losing customers and face potential bankruptcy. However, supply chain automation effectively levels the playing field between companies of all sizes. In other words, small businesses can finally take advantage of the same resources available to Amazon and the Big Box retailers. However, it does come at a cost, including the potential pushback of shareholders and employees. Instead of trying to please everyone, demonstrate how automation will benefit all parties involved. For instance, automation improves worker safety and does not add to labor costs.
Proper execution of automation within the supply chain will help leaders realize key benefits within their organizations. These benefits include:
Any supply chain automation strategy must follow a carefully defined path to achieve success. Poor implementation will leave a gap within capabilities and may lead to costs higher than your prior use of technology. To avoid this problem, supply chain leaders must have the wherewithal and experience to implement systems effectively and reduce investment costs. More leaders are choosing to outsource the process by partnering with a supply chain systems integrator.
To subscribe to our blog, enter your email address below and stay on top of things. We'll email you with a confirmation of your subscription.
Send this to friend