As customer demand and requirements continuously evolve, the implementation of automation across supply chains is gathering momentum to ensure operations remain as agile as possible. The growth in ecommerce is set to continue, so seamlessly adapting to this ever-changing environment is critically important for businesses.
However, it’s important to note that much research must be done to understand the specific needs of your own business, what exactly you are trying to achieve, any capital expenditure constraints and, ultimately, engaging with a partner that can meet with overall expectations.
Why automating processes in supply chain operations is important
The need for automation fundamentally comes down to providing customers with the level of service they demand.
In markets with lower product margins, there needs to be an understanding of how to best make use of automation. Systems need to operate relative to the order sizes to enable efficiencies to be achieved.
Next-day delivery has now become commonplace across the online retail sector, which means supply chains need to react for this to be achieved. Automation can support and enhance this to ensure customer demand is met.
The real focus, however, is on the ability to serve and the cost to serve, and ensuring businesses are agile enough to deliver the required service.
Overcoming the challenges of automation
In order for a business to select the correct type of automation, there needs to be high levels of due diligence undertaken so that the precise system requirements are understood internally. The integrity of the business data relative to product and order profiling are two of the key fundamentals to determining system choice and how material will flow both in and out of the system itself.
It is imperative that businesses install an automation system that is appropriate to their operations. If the system doesn’t deliver what you intended, it could be hugely disruptive to a business’s supply chain and, in turn, negatively impact customer service.
If automation unfortunately fails in a working day, there are usually very limited options available to recover and maintain order flows. This can ultimately put pressure on businesses as customers have choices to buy elsewhere. Therefore, it’s crucial that businesses have the required service level agreements in place to maintain its automation systems.
Back-office systems also need to be integrated and robust in order to have a fully supportive material flow that enables the efficient and smooth order process from receipt to despatch and customer delivery. In the main, the less complex a back-office system is, the better it becomes.
Consumer demand driving the introduction of automation
Due to the B2B market in the UK being saturated, growth in projections ultimately come from B2C demand hence why the consumer has played a critical role in automation.
The acceleration of e-commerce and the pandemic has bolstered this elevation in the last two and a half years. As a result, businesses have become more interested in automated systems to remain competitive in their markets.
Upskilling, not replacing, staff
Automation creates many opportunities for a business’s employees, due to it requiring a different level of skill. It brings into focus a different way of planning, maintaining optimised levels, and its impact on other processes within the business.
Businesses will ultimately get the best out of automation when it is optimised, which requires a team of highly trained operators in the background. There is always a question about robots replacing people, but once communicated and made clear to all, a collaborative process needs to be in place that underlines the business requirement for both people and robots.
For example, having planning managers with highly developed analytical skills, whilst also understanding general business dynamics, is key to the operation.
Operations managers who understand more about material flows, and system superusers who possess the knowledge to avoid disruption and understand the ergonomics of the equipment are also a must.
The implementation of automation provides the opportunity for warehouse operatives to learn new skills which meet the aforementioned skillsets and enable and aid their own career progression.
Harnessing the power of automation to drive supply chain improvement
There are a range of factors for businesses to consider when introducing automation in supply chain operation. However, the most important of these is whether the system will deliver and support long-term strategic plans for businesses.
Although automation comes with its pressures, e-commerce demands has meant automation is becoming increasingly important to the online retail sector. However, these automated processes are still reliant on human interaction, and offers businesses the opportune moment to help upskill and develop their workforce.
