Will Automation Optimize Supply Chain Processes?

As demand continues to increase for the logistics industry, incorporating artificial intelligence (AI) and automation has proven to be a crucial part of the fix. Advanced technology offers a realistic option that eases the burden while still allowing companies to provide high levels of service and improve productivity.

From supply shortages to port bottlenecks, the logistics industry has faced challenge after challenge. At the same time, demand for shipped goods has only increased. The U.S. Bureau of Labor Statistics reports the costs and demands of goods have continued to rise well into 2022, showing the “largest increase since 12-month data were first calculated in November 2010.”

Automation and AI solutions are evolving rapidly, and logistics companies are incorporating new tech to streamline their processes. Supply and Demand Chain Executive found that 25% of industry leaders are fast-tracking automation programs, and 39% are implementing a control-tower approach to increase end-to-end supply chain transparency.

It’s getting harder and harder to compete in the current market and make a profit without automating certain processes.

How Automation will Save the Supply Chain

There are many benefits that come with integrating AI and automation . There is a concern that machines will take our jobs. However, as you will see, machines can help us do our jobs more efficiently and effectively—especially in light of the current talent shortage .

Machines can handle jobs that people don’t want to do or can’t do without advanced computing support. We can create a stronger, more resilient and more effective supply chain using modern tech solutions.

Alleviating Workforce Burdens

One of the most important jobs of AI and automation comes in reducing the amount of needless busy work done by front-line workers. Tasks like data entry and load matching are examples of work easily streamlined by technology.

Companies can use software to automate responses to frequently asked questions and complete redundant tasks. Tech solutions allow the workforce to focus on high-level tasks instead. Companies find they have more time to solve customer problems and bring in more business when their teams aren’t burdened by busy work.

Organizing Data and Information

Companies are strapped with more data than ever before. The need for data is sometimes outweighed by the cost of collecting, organizing, and normalizing that data; teams are overloaded with documents and files they need to integrate into the system.

AI can scan emails or documents and assess the purpose, contents, and value of the contents. The software can audit against existing information, organize new data or respond to the sender based on parameters set. AI can also provide automatic tracking updates to improve shipping visibility and transparency.

For example, when feeding that data uncovered by AI, machine learning is able to detect anomalies in the supply chain network and help improve decision-making or catch costly errors that are increasing operational costs, such as shipping in the wrong mode or carrier or catching errors on invoices found in freight audit data .?

Streamlining Processes and Tasks

Automation makes it possible to get more accomplished each day. Companies aren’t replacing people with bots; they are using bots to get high quantities of tasks done for increased profits. Using automation, companies can reach larger audiences and empower their team to keep up with increased demand. With automated AI-powered email response bots, logistics companies have been able to eliminate email inbox tasks by 80%, for example.

Improving Resource Use Efficiencies

With the current chassis shortage, freight forwarders and carriers should carefully manage resources. Not only does better management improve capacities for higher profit, but improving efficiencies also leads to more sustainable practices.

Strengthening Vendor Relationships

Building up relationships with partnering companies is a smart move in the logistics industry. Vendors want to be paid on time for services rendered. Using invoice uploading software and auditing automation , companies can check their expenses against initial quotes and create a faster cash flow system.

Building Customer Trust and Respect

Of course, procuring work is one of the most important tasks for any company in the supply chain. AI and automation have made it easier to build trust and respect by enabling 24/7 response times. AI makes it possible to respond immediately to customers over email or through chatbots without the need for human intervention.

For example, RPA Labs reported only 31% of freight forwarders responded to quote requests with an average response time of 57 hours (most didn’t respond at all). Using AI to create competitive estimates and then automating the quote process is one way a logistics company could earn the business of shippers without overtasking their team.

Identifying Points of Lost Productivity

AI can even help companies find areas where they are losing momentum and profits because of inefficiencies in their process. Companies can measure their productivity to find areas where employee jobs are more difficult than necessary. Using productivity metrics to pinpoint problem spots in their processes, companies can then adjust to incorporate the modern solutions that improve that area of operation.

Orchestration & Exception Management

Orchestration is a fancy way of saying “provide the ability for supply chain professionals to streamline processes around specific objects, like orders or shipments, in the supply chain process and offer an ability to gain holistic visibility, source information faster, provide contextual information, and help prioritize decision making in a collaborative way.” At the end of the day digitizing logistics processes and the quest for optimization is really all about sourcing the right information, at the right time, that yields actionable insights to truly root out waste and inefficiencies in order to stay proactive. After all, a competitive supply chain is one that can get the best speed to market all while keeping your Cost of Goods Sold at a place that protects overall profit margins. Automation is the key to sourcing this information.

Additionally, automation is helping with proactive exception management. Platforms are coming online to help bring parties together, through orchestration, both on the upstream side for ocean freight at origin and downstream all the way to the final mile. These platforms give an orchestrated approach that allows for exception management and delivery order automation in the last mile and other modes, better insights from data, and the ability for cross-department collaboration to work together towards a more sustainable goal.

Technology in the supply chain continues to evolve, and the biggest competitors will incorporate solutions that support sustainable growth.?