How Integrated Automation Impacts Supply Chain and Logistics
Finding ourselves smack-dab in the middle of the age of technology, the advancement of tech-driven systems is inevitable in the day-to-day, year-to-year business operations of every industry. Well, maybe not “almost” every organization in every industry. After all, automation integration can often be intimidating, especially to smaller companies.
But, what does automation integration mean?
Simply put, it means that more and more, businesses all over the world are operating with minimal human assistance or operating with the help of integrated automation, greatly impacting the logistics of business on a grand scale. In the following article, we will take a look at what automation does now and how it will integrate with logistics companies in the future.
A Look at Current Advancements of Integrated Automation
Let’s look at some current advancements (and benefits) of integrated automation.
⧫ Reducing the level of human error
⧫ Improving faster turnaround times
⧫ Decreasing the overall cost of company spend
⧫ Resulting in greater control of rates
As it is now, automated systems provide real-time inventory updates, create labels, cut manual hours, and ensure that all sorts of other back-end business functions happen without issue. Creating solutions to common industry problems, running a business without automation is quickly becoming, well, priceless.
One of the best examples of current automation advancements that could change logistic business in the future is Amazon using Drones to deliver packages close to their east coast headquarters. Still, in testing stages, this integration makes drop-off times incredibly fast, creating fast turnarounds and increased customer loyalty.
The Impact on Logistics by the Future of Integrated Automation
As AI and other cloud-based tools are becoming more powerful, and more ubiquitous, we are going to see these tools implemented into back-end logistics like never before. And, a few things will happen.
⧫ Expanding the reach of business
⧫ Demanding a higher level of education for employees to run automated tools
⧫ Eliminating great amounts of waste
On top of the above-mentioned future projections for how automation will affect logistics, we will most likely see small businesses being merged and acquired due to the high cost of keeping up with technology integration. In turn, this could lead to large-scale logistics companies with less competition because less and less smaller-scale operations will be able to afford such automation.
Just imagine the cost of digitizing a supply-chain. It will increase global trade and reduce friction while limiting how many companies can actually achieve this scale of automation. It is overall expansion, nothing less. But, as business owners know, expansion can often cost money. Having an experienced partner at your side can help you not only expand but help you do so in a way that’s attainable.
An Intimidating Prospect for Established Businesses in the Industry
These projections may sound scary or as if the future of logistics is going to change unattainably overnight. However, the reality is, if you adapt slowly and steadily to changing times, the process of integrating automation can actually be easy, helping your supply and demand grow and flourish.
Keeping an eye on trends, and partnering with an expert, is the best bet for staying relevant. ClearFreight is your helpful partner that will keep you moving forward. Contact us today to see how you can keep staying relevant in our dynamic environment.
ClearFreight. Customer forward.