How does automation enable the future of intelligent digital supply chain?

In recent years, the global supply chain has experienced a major transformation with the rise of digitization. Forward-looking companies are increasingly assessing their supply chain initiatives and turning to new, advanced technologies to improve productivity and secure themselves against uncertainty. They are exploring new technological applications and possibilities in order to ensure the supply of production lines, the delivery to customers and build an independent supply chain management function.

With the advent of the fourth industrial revolution (Industry 4.0) technologies, supply chain functions have entirely disrupted and enabled businesses to reconsider the way they design their supply chain. Automated technologies have been proven to expedite and streamline supply chain processes, modernizing manufacturing, logistics and warehouse functions. With automation, supply chains have the opportunity to reach the new next level of operational effectiveness.

As the traditional supply chains are largely based on linear model with an absolute focus on the physical movement of goods, this supply chain management model is no longer efficient in today’s expanding expectations. In this way, supply chains need to embrace emerging digital supply chain business models that can help meet the ever-changing global consumer marketplace.

The Rise of Supply Chain Automation

Significantly, supply chain automation refers to the use of automated technologies that can manage a complex web of working parts. Automating the supply chain has numerous potential benefits for businesses, including reduced manual effort while increased productivity, efficiency, and accuracy. In addition to this supply chain automation considerably delivers enhanced client satisfaction, improved management accuracy and minimized turnover times, lessened risks of workspace injuries, and decreased environmental footprint and eco-compliance.

Implementing appropriate automation technology in place, businesses will have the ability to support zero-defect logistics processes and drive new levels of productivity. The potentials of supply chain automation continue to expand that can meet surged demands of companies across the globe for transparency, speed and compliance.

McKinsey identified several mega trends that have a heavy influence on supply chain management, including a continuing growth of the rural areas worldwide, with wealth shifting into regions that have not been served before. Simultaneously, the growing online trends has led customer expectations combined with a much stronger granularization of orders. There is also a very definite trend towards further individualization and customization that drives the strong growth of and steady changes in the stock keeping unit portfolio.

However, this online-enabled transparency and easy access to a multiple options regarding where to shop and what to buy is sent drive the competition of supply chains. Thus, to build on these trends and contend with the changing requirements, supply chains must to become much faster, more granular, and much more precise.

Digitization of Supply Chain

Effective modern supply chain management simply requires real-time visibility across every aspect of supply chain, from sourcing and transportation to manufacturing and inventory. As consumer and client bases continue to grow at rapid pace, supply chains will need to adapt to larger, more complex methods of product transportation. Digitizing the supply chain will enable companies to address the customers’ new requirements, along with the challenges of the supply of products. This will also enable enhanced visibility and deliver real-time insights into the supply chain, eliminating the need of face-to-face interactions and improving overall supply chain management