The automation of processes in the supply chain 

Manual processes, the lack of precision in inventory management and prolonged delivery times are just some of the recurring problems affecting logistics operations. 

Can you imagine a flow of efficient work where human error is minimized, delivery times are lowered, and operational costs are optimized? 

The automation of processes in the supply chain makes this scenario possible, by allowing repetitive and manual tasks to be done using advanced technologies and systems, and freeing up human potential to focus on activities with greater added value. 

What is the supply chain? 

The supply chain, also known as the logistics chain, is a fundamental concept in the business field and refers to the flow of goods, services, information and capital from the point of origin to the point of consumption. 

Hence the need to implement innovative technologies with the aim of setting up more efficient and productive logistics and production processes.

Some of them include robotic process automation (RPA), artificial intelligence, digital twins and machine learning. 

In itself, the supply chain covers all the stages involved in the production, transformation, storage and distribution of products. 

Its effective management is essential to guarantee the availability and quality of the products, as well as to optimize costs and delivery times. 

What are the processes in the supply chain?

In the current business world, understanding the different processes in the supply chain is essential to guarantee the opportune delivery of products and satisfy clients’ needs: 

• Planning. It implies predicting and forecasting the demand for products or services depending on different factors, such as historical patterns, market trends and special events. 
• Evaluation of suppliers. It includes the selection of reliable suppliers, contract negotiation and the management of orders to ensure the quality of the supplies and the continuity of the supply. 
• Inventory management. Its aim is to maintain a balance between the cost of storage and the availability of products to meet the demand. 
• Production and operations. They are focused on the administration of production capacity, the programming of activities, quality control and continuous improvement of processes. 
• Logistics and transport. It includes the physical movement of products from suppliers to the end clients. In addition, packaging, transport coordination and route optimization. 
• Orders. This focuses on the reception of orders, the verification of product availability, the preparation of dispatches and the coordination of the delivery.
• Customer service. It is everything implied by the management of claims and returns, and the solving of problems in order to generate loyalty or maintain solid commercial relations. 
• Continuous improvement. Throughout the supply chain, it is fundamental to identify areas of inefficiency, carry out data analysis, implement corrective measures and aim for operational excellence in all aspects. 

What is the automation of the supply chain? 

It is a strategic approach which seeks to improve the efficiency and productivity of the processes involved in the management and operation of the chain. 

It consists in applying advanced technologies and systems to carry out tasks automatically, reducing human intervention and optimizing available resources. 

It actually covers different aspects, from the planning and control of inventories to the management of orders, logistics and the tracking of products. 

Benefits of the automation of the supply chain 

Automation of the supply chain offers a series of major benefits for businesses: 

• Improved operational efficiency. By not relying on manual or repetitive tasks you speed up processes, minimize error, boost productivity and efficiency in the supply chain. 
• Reduction in response times. For example, automated inventory management systems help to update in real-time stock levels and allow for more accurate replenishment planning. At the same time, they help speed up the reception, verification, preparation and dispatch of the same. 
• Increased visibility and traceability. With the use of technologies like the Internet of Things (IoT) and radiofrequency identification (RFID), you can accurately track the location and state of the products in real-time. 

This helps in inventory management, the detection of possible problems and data-based decision-making. 

• Cost and resource optimization. By reducing human intervention in repetitive tasks, you lower the possibility of errors and minimize costs associated with reworks. 
• Greater precision in decision-making. One of the advantages of automated systems is that they gather and analyze a huge volume of data quickly and accurately, thus permitting more informed, data-based decision-making. 
• It strengthens client satisfaction. This is particularly due to the fact that delivery times are shorter. Accuracy in order processing and visibility of the products in real-time are factors that generate trust in clients. 
• Error reduction. The implementation of automatic solutions based on technologies like artificial intelligence and RPA (robotic processes automation) lowers the possibility of mistakes in process management and in the handling of goods. 
• Accurate inventory management. For this, digital programs are used to control the inventory in real-time. Digitalization also covers synchronization with other programs involved in the supply chain. 

Examples of automation in the supply chain 

Below are a few examples of automation at different stages: 

• Inventory management. Companies can use advanced systems of managing inventories which use technologies like bar code scanning and radio frequency identification (RFID) to trace and track in real-time inventory levels. 
• Planning demand. It is essential to foresee clients’ needs and guarantee proper supply. The work entails the use of algorithms and advanced models to analyze historical sales data, market trends and other relevant factors. 
• Processing orders. Using automated systems, the orders are captured electronically, checked and processed efficiently. 

As a result, fewer mistakes are made, processing times are lower and client satisfaction is raised with products being delivered earlier.

• Warehouse management. Automated warehouse management systems (AWMS) avail of technologies like voice scanning, robotics and smart storage systems to optimize operations. 
• Automation of transport and logistics. Transport management systems (TMS) enable routes to be improved, the programming of deliveries and real-time tracking of shipments. In addition, the introduction of self-driving vehicles and drones has revolutionized the work by permitting greater speed and precision in distribution. 

As can be appreciated, the automation of processes in the supply chain is a fundamental step forward for companies in their quest for efficiency, precision and competitiveness in an increasingly demanding environment. 

However, it is important to underline that it cannot completely replace the need for skilled professionals. 

It is true that technology is a powerful tool, but it requires a human approach to take strategic decisions and adapt to the changes in the market. 

At KENSA Logistics, we are leaders in solutions for the automation of processes in the supply chain. 

If you are interested in optimizing your operations, improving efficiency and gaining a competitive edge, please contact us.