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ASCM Insights

Knowing When — and When Not — to Automate

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The iconic Star Wars droids R2-D2 and C-3PO have captured imaginations for decades, highlighting the potential of robots to perform tasks efficiently and reliably and inspiring dreams of a future where technology seamlessly integrates with our daily lives. In supply chain, robotics and automation are becoming increasingly prevalent, offering practical solutions to a wide range of challenges. From automating mundane tasks to enhancing precision and efficiency, these technologies are transforming the way people work.

In the news this week are two interesting examples: First, Amazon is now using a drone-enabled shipping process to transport products to fulfillment centers; plus, shipping company Maersk is investing in autonomous vessels to move goods more efficiently and with less fuel. Inbound Logistics lists numerous benefits of supply chain automation, including:

  • Enhanced inventory visibility to help companies avoid overstocking products at risk of growing obsolete or understocking popular items and losing sales
  • Meeting sustainability goals by streamlining vehicle routing and scheduling, making sure trucks on the road are at capacity, and reducing the potential for emissions.
  • Boosting decision-making with digital twins that help supply chain professionals simulate key events
  • AI-enabled solutions that augment data insights and enable early adopters to improve logistics costs by 15% and inventory levels by 35%, according to the article

These automation options can be especially enticing for industry leaders who want to save time and money by cutting out the inefficiencies of human labor. But more automation doesn’t necessarily equate to more productivity: “This new environment offers fewer opportunities to automate processes in their entirety and makes them more dependent on the ingenuity and flexibility that human workers provide,” Industry Week notes. The crucial solution, then, is to integrate the automated elements — robots, for example — with the existing human workers who control them. In fact, cobots, or collaborative robots, are the fastest-growing robotics segment.

This concept is being explored at Parker-Hannifin, which uses a hierarchical approach to deciding whether automation makes the most business sense:

  1. Simplify the process as much as possible.
  2. Consider an unpowered mechanical solution.
  3. Consider the programmed robotic option.

This method also prevents wasted energy and resources because the company isn’t automating an inefficient process. Better still, it ensures the business continues to innovate and evolve.

Educate, then automate

Informed and effective supply chain professionals know how and when to choose the right process for their organization’s digital transformation goals. That’s where the ASCM Supply Chain Technology Certificate comes in. This credential helps you build a working knowledge of emerging technologies and how they may affect your networks, helping you propose innovative solutions, evaluate benefits and risks, and know which technology will improve supply chain performance and which will waste resources. Use code LEARNANDSAVE when you sign up for this certificate and save 15% today!

About the Author

Abe Eshkenazi, CSCP, CPA, CAE CEO, ASCM

Abe Eshkenazi is chief executive officer of the Association for Supply Chain Management (ASCM), the largest organization for supply chain and the global pacesetter of organizational transformation, talent development and supply chain innovation. During his tenure, ASCM has significantly expanded its services to corporations, individuals and communities. Its revenue has more than doubled, and the association successfully completed three mergers in response to both heightened industry awareness and the vast and ongoing global impact driven by supply chains. Previously, Eshkenazi was the managing director of the Operations Consulting Group of American Express Tax and Business Services. He may be contacted through ascm.org.