Changes are in full swing when it comes to supply chain automation. Learn how these changes are beneficial to both the supplier and its employees.
Prepare for the Jobs Supply Chain Automation Will Create
Automation is here, but have no fear. As a worker in the supply chain industry we know automation may be a scary thought, but it’s important to remember how automation benefits your company. It’s also important to know that with the elimination of some jobs comes the creation of many new ones.
What is Driving the Use of Automation Forward in the Supply Chain Industry?
- The Need for Speed: The average attention span of a human is 8 seconds. This is less than the goldfish you bought for your child. An ever-increasing demand for instant gratification is driving the need for supply chains to make big changes. More automation equals higher production.
- Reducing Costs: Having more automation involved in supply chain processes reduces both hard and soft costs for a company
- The Customer is Always Right: Over everything, satisfying the needs of the buyer is the key to success. Having a more streamlined automation system doesn’t just get products in their hands faster. It also creates more brand loyalty and allows companies to put more effort and bodies into customer service rather than supply chain.
Automation is moving forward. Just how effective can it be for your supply chain management plans? Here are some straight facts to show what and how much it helps.
Three quarters of record-setting robotics automation ordering.
During the first 9 months of this year, companies ordered up almost 24,000 robots racking up $1.3 billion in costs. That’s a huge investment for a growing need and was a 7 percent increase year over year.
The bulk of these orders came from the automotive industry, but small and mid-size companies with high need for supply chain efficiency are also investing in this technology. Companies interested in learning about how this technology can help their business can attend Automate 2017, a technology conference held in Chicago, IL.
Supply chain automation reduces operating costs for businesses and can assist in almost 45% of current work activities in this industry.
In the supply chain, making mistakes can be very costly. Even minor defects can lead to massive recalls, production errors, and ultimately big out of pocket costs. For example, the average cost to re-work an order for a client costs $200-250 and on the customer service side it is common for employees to spend 20% of their time manually processing orders that could be automated. Using automation for orders, re-orders, and in supply chain production significantly reduces the chances of errors.
How are Companies Using Automation in their Supply Chains?
L’Oreal: This beauty product business has started to use automation in its supply chain, and the results are undeniable. They used a ‘slotting’ technology in one of their facilities and saw a 12 percent growth in efficiency in the first few months. Along with increased efficiency and a smaller occurrence of errors, L’Oreal has benefitted from the fact that statistics are both visible and clear to see to help continue improvement of processes in the future.
Heico Companies: This company with many delivery fleets purchased Ancra Systems B.V., a European company and world-wide leader in trucking automation. How are they using this? To attempt to take big steps ahead of their competition. The average time to load/unload one of their 53’ trucks used to take about 30-45 minutes. Now, it takes them 3 minutes.
Automation in the Supply Chain Industry is Positive, Even for the Workers.
For employees who are afraid automation might swoop in to steal your jobs, it’s time to think positive. Adaption will come through learning new skills. Find out what investments your company might be looking into for supply chain automation and decide what skills and certifications you can add to your resume to be able to compliment the automation. Jobs in IT, customer service, and management are great avenues to prepare for. With the elimination of jobs WILL come new jobs. For example, studies in the UK show for every job lost to automation, three new jobs will be created. The future is bright, and more efficiency in the supply chain will free up dollars to be spent by companies in other areas.
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