Regardless of the business size, supply chain automation efficiency is crucial to reducing costs, improving order fulfillment rates, and boosting overall productivity. Inefficient supply chain management can lead to severe consequences including lost revenue, damaging market reputation, and compromising customer satisfaction.
Supply chain management is an intricate network of interconnected and complex processes that are quite hard to manage without technological aid. Therefore, supply chain automation is becoming a popular trend among business communities, particularly e-commerce entrepreneurs.
Here’s a complete introduction to digital tools that you should consider to automate your supply chain processes and drive successful outcomes.
1. RPA
One of the most important tools that every warehouse manager must have is RPA or robotic process automation. It comes with software robots that can help you automate repetitive and rule-based tasks such as data entry, order processing, and inventory tracking. Unlike the human workforce, these bots can work 24/7 without making any mistakes, ensuring accuracy and time efficiency.
2. WMS
The most popular tool that is widely used to streamline supply chain operations is WMS or warehouse management system. From order processing to inventory tracking, shipping, and returns management, it can perform all tasks efficiently and accurately, saving the time of the warehouse manager and other staff and allowing them to concentrate on other core tasks of your business.
3. AI and ML
Artificial intelligence and machine learning can also play a crucial role in predictive analytics, helping supply chain managers forecast demand, optimize inventory, and manage disruptions. For example, AI can analyze historical sales data and external factors like weather or market trends to predict future demand. This enables businesses to reduce stockouts or overstock situations, ensuring a smoother flow of goods through the supply chain.
4. IoT
IoT or the Internet of Things is simply a network of interconnected devices such as GPS trackers, RFID tags, and smart sensors that can help you share and access crucial data. They provide real-time visibility into the status of shipments, warehouse conditions, and equipment. For instance, IoT sensors can monitor the temperature of perishable goods during transportation, ensuring compliance with quality standards and reducing the risk of spoilage.
5. AGVs and AMRs
AGVs or automated guided vehicles and AMRs or autonomous mobile robots are also considered crucial supply chain automation tools. They can automate the movement of materials within warehouses or factories because they are specifically designed to transport goods from one location to another without human intervention, improving efficiency and cutting down on the amount of time required for material handling.
AMRs are more advanced than AGVs, using sensors and AI to navigate dynamic environments, making them ideal for complex warehouse layouts.
6. Cloud Based SCM
Cloud-based SCM platforms are known for their ability to provide a centralized hub for managing all supply chain activities, from procurement to logistics. These platforms enable real-time collaboration between different stakeholders, including suppliers, manufacturers, and logistics providers. They provide real-time data visibility, allowing businesses to make faster, more informed decisions.
7. Blockchain Technology
It is crucial to ensure seamless and secure recording of transactions throughout the supply chain process. It is crucial, particularly for those who have to manage multiple suppliers and across-the-border shipping to ensure transparency and improve traceability.
8. Digital Twins
A digital twin is a virtual replica of a physical asset, system, or process in the supply chain which allows companies to create digital models and test changes before implementing them, identifying potential bottlenecks or inefficiencies and making adjustments proactively.
9. A-IMS
Another significant tool that can help you automate supply chain processes is the automated inventory management system or A-IMS. It is specifically designed to keep track of inventory levels and accurate demand forecasting, resulting in eliminating the risk of understock and overstock issues.
10. OMS
OMS or order management system is a crucial supply chain automation tool that can help you streamline crucial order fulfillment processes and drive customer satisfaction. From order picking to packing, shipping, and tracking it can perform all tasks automatically, ensuring seamless order management even during peak seasons.
Key Takeaway
Supply chain automation is crucial not only to streamline complex operations or processes but also to avoid costly mistakes, ensure order fulfillment efficiency, and drive continuous growth and success. By leveraging these top 10 tools you can improve your supply chain visibility by 80% and achieve a 99% order fulfillment rate, the key to surviving and thriving in the bustling e-commerce world.
