We have discussed this before. There are enough examples of Supply Chain Disasters in this world to convince us about the importance of supply chain management. Moving further in this direction is the automation. Of course, it goes without saying that no matter what we do – automate or otherwise, we have to be careful, the whole task has to be taken seriously if you do not wish to waste your company’s revenue for no reason. That said, why automate? Why not let humans continue doing their tasks?
We’ll give you a quick roundup as to why; the obvious reason is that Supply Chain Automation can improve the rate at which products go from suppliers as raw materials to customers as finished goods, all the while reducing costs. But, there is a bigger picture as well.
Low Operating Costs
It’s a low hanging fruit. We have to mention this before moving on to anything else. Automation by definition brings down the labour costs. It can also reduce inventory, warehousing and overhead costs associated with inventory storage, including rent, labor and lighting costs.
Improving time savings
By streamlining business processes, supply chain automation boosts time savings by reducing the time associated with implementing labor-intensive tasks like accounting. This reduction in manual processes can save manufacturers vast amounts of time and money.
Depending on the industry, automation can greatly help your organization’s ability to comply with industry standards. Compliance can be maintained via automation by standardizing pricing, products and vendors.
Reducing environmental footprint
Automation can impact the environment in a positive way, especially if your organization’s objective is to go paperless. By eliminating the paper and energy necessary to print documents, automation can help reduce a manufacturer’s carbon footprint.
Automation means we can work 24/7, while humans will be needing time off and if we manage with different shifts, the cost is more in all scenarios. Companies can increase productivity in the manual areas.
Being worked on by a computer means it’s programmed not to create any errors. Humans are bound to make some errors owing to a variety of reasons – stress, fatigue, actual error and more. Automation can also help plan the cost by bringing down the manual control.
Increasing sales and production count
The number of products completed and shipped will get drastically improved thanks to automation. Also, predictability increases. With manual labour there is a quotient of question that does not allow us to make an accurate prediction.
Now that you have you reasons, it’s time to check out mSupplier. Our inhouse Enterprise Supplier Management Solution. Check out the 2-min video here.