Supply chain operators today face a convergence of challenges: rising costs, persistent labor shortages, and volatile market conditions. These factors create significant uncertainty, making long-term planning and investment decisions increasingly complex.
Amid these challenges, automation emerges as a key strategy for future-proofing operations. By leveraging advanced technologies, businesses can not only address current issues but also build more resilient and agile operations.
Managing rising costs
A recent energy survey from PricewaterhouseCoopers (PwC) highlights the profound effects of crippling energy costs on supply and logistics organizations. Over a third of respondents reported that high energy costs significantly impacted their profits and margins.
Automation technology and digital transformation can inform smarter and more consistent decision-making and produce cost-savings. For instance, retrofitting smart controls to industrial fridges or installing cloud-based technology can maximize yields, reduce waste, and drive efficiency gains. Moreover, Artificial Intelligence (AI) powered predictive analytics can improve demand forecasting, helping to balance inventory levels, warehouse costs, and consumer demand.
Addressing staff shortages
Staff recruitment and retention remain major issues for supply chain and logistics operators. Global figures suggest that 76% of operators have faced notable workforce shortages since 2020.
While investment in new talent and retaining existing staff is essential to ensure consistent operational efficiency, technological solutions can fill the gap left by labor shortages while having a positive impact on productivity.
Automation is ideal for handling repetitive, manual, or non-value-added tasks, such as optimizing delivery routes and enabling real-time shipment tracking. It also plays a role in attracting talent and retaining existing staff by supporting flexible working arrangements. Moreover, deployment of back-office automation and advanced analytics can bridge a knowledge gap in warehouse operations and optimise process efficiency. Automated systems offer the flexibility and scalability needed to manage peak season orders, reducing the dependence on temporary workers during peak times.
Tackling challenges in a volatile market
Digital transformation is crucial to ensuring preparedness, agility and responsiveness in supply chains. Digital tools and technologies provide real-time visibility into operations, enabling businesses to respond quickly to changes in demand and market conditions.
Enhanced data analytics, such as blockchain technology, can help identify issues or inefficiencies in the supply chain, offering insights for future planning.
The use of automated solutions like Automated Storage and Retrieval Systems (AS/RS), Autonomous Mobile Robots (AMRs), and automated sorting systems in warehouse operations reduces operational costs, increases efficiency, and enhances order fulfilment processes, enabling businesses to meet the growing expectations of their customers.
Unlock your competitive edge through automation
By embracing automation, companies can overcome current challenges, adapt to future disruptions, and maintain a competitive edge in the market. Innovative financial solutions such as rental and pay-per-use models allow businesses to scale their operations without the burden of large upfront costs or ownership commitments, helping preserve equity and cashflow.
Bespoke financing options for entire intralogistics projects, including variable payments and deferred payment schemes ensure that businesses can effectively manage their financial commitments while investing in automation.
