Supply Chain Automation:
Trends, Benefits, Workflow Automation

Logistics manager explores the benefits of supply chain automation

Leverage the power of supply chain automation - from start to finish. Increase visibility, minimize human errors, and create a seamless workflow that scales with your business. Discover how Artsyl can take your supply chain to the next level.

Supply chain automation is rapidly transforming the global logistics landscape. As more businesses face supply chain disruptions, the demand for streamlined and resilient solutions has skyrocketed.

Gartner informs that by 2026, over 75% of large enterprises are expected to adopt some level of automation in their supply chain, highlighting its growing significance. Automation technologies like AI, robotics, and IoT are enabling companies to enhance efficiency, minimize human errors, and improve visibility across their supply chains.

No wonder that the global market for supply chain automation is projected to reach $100 billion by 2030, driven by the increasing need for agility and cost savings in logistics management. In this article, we will explore:

Time to Automate Your Supply Chain?

Time to Automate Your Supply Chain?

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What is Supply Chain Automation?

Supply chain automation refers to the use of technology, such as artificial intelligence (AI), robotic process automation (RPA), Internet of Things (IoT), and machine learning, to streamline and manage supply chain processes with minimal human intervention.

The goal of supply chain automation is to create a more efficient, accurate, and resilient supply chain by automating repetitive tasks like order processing, inventory management, tracking shipments, and demand forecasting.

Automation tools help supply chain managers respond to changes faster, improve visibility across different supply chain stages, and reduce the potential for human errors, which can lead to delays or increased costs.

With the rise of global supply chain disruptions, many companies are adopting automation technologies to maintain resilience and agility.

Benefits of Supply Chain Automation

In general, automation enables companies to complete tasks that would normally take hours in just a fraction of the time. By using automated systems to handle repetitive processes like order fulfillment, inventory checks, and data entry, supply chains can operate much faster and with fewer bottlenecks.

According to McKinsey, supply chain automation can lead to a 50% reduction in order processing times.

In today’s competitive market, investing in supply chain automation is crucial for building resilience, ensuring agility, and providing an optimized customer experience.

How Can I Achieve Cost Savings with Supply Chain Automation?

One of the key benefits of automation is the potential to reduce operational costs. By minimizing the need for manual labor and reducing the risk of errors, businesses can save significantly on labor costs and wasted resources.

A PwC study found that companies adopting automation in supply chain management can save up to 30% on costs by improving operational efficiencies.

READ MORE: Document Automation for Logistics and Supply Chain Management

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Does Supply Chain Automation Improve Accuracy?

Automation reduces human errors in data entry and inventory tracking, which are common problems in manual processes. Robotic Process Automation (RPA) can ensure consistent accuracy when dealing with high-volume, repetitive tasks like invoicing, reducing costly mistakes. This improved accuracy also leads to better customer satisfaction, as products are delivered as expected.

How Does Supply Chain Automation Enhance Visibility and Control?

With automation, supply chain managers gain real-time insights into different aspects of the supply chain, including inventory levels, shipment tracking, and supplier performance. Technologies like IoT enable real-time monitoring, allowing businesses to stay informed and make adjustments as needed. Enhanced visibility helps in reducing risks, preventing disruptions, and making informed decisions.

Better Decision-Making in Supply Chain Automation through Data Analytics

Supply chain automation allows businesses to collect data from multiple stages of the supply chain and use advanced analytics to gain insights and improve decision-making.

By automating data capture and analysis, companies can forecast demand more accurately, optimize routes, and manage inventory levels effectively. This helps avoid issues like stockouts or overstocking, ensuring a more balanced and optimized supply chain.

How Does Supply Chain Automation Ensure Scalability?

Automation makes it easier for businesses to scale their supply chains as they grow. Automated processes can handle increased volumes without requiring significant additional labor, which is particularly beneficial for companies experiencing growth or handling seasonal spikes in demand.

Can Supply Chain Automation Improve Customer Satisfaction?

By reducing errors, speeding up order processing, and providing real-time tracking information, supply chain automation can lead to higher customer satisfaction. Faster and more reliable deliveries create a better customer experience, increasing loyalty and repeat business.

In summary, intelligent supply chain automation offers significant benefits by improving efficiency, reducing costs, enhancing accuracy, and providing valuable insights for better decision-making.

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Like many processes across industries, supply chain automation is becoming disrupted by the use of AI and machine learning (ML). These technologies are providing businesses with predictive analytics, improved decision-making capabilities, and the ability to adapt to market changes in real-time.  AI-driven supply chain automation tools help companies forecast demand, optimize routes, and analyze supplier performance.

According to Gartner, by 2025, 50% of supply chain management tasks are expected to be automated using AI and ML, allowing businesses to be more agile and efficient.

Robotic Process Automation in Supply Chain Automation

Robotic Process Automation (RPA) is being increasingly adopted to automate repetitive tasks such as data entry, order processing, and inventory management. RPA can significantly reduce the time spent on routine processes and minimize errors, freeing up human employees for higher-value activities.

McKinsey estimates that RPA can lead to 30-50% savings in overall supply chain costs, making it an attractive option for companies looking to streamline operations.

Supply Chain Automation with Internet of Things (IoT) and Real-Time Tracking

IoT is revolutionizing supply chain management by providing real-time tracking and monitoring of goods. The use of IoT-enabled tracking is projected to reach 50 billion connected devices by 2030, according to Statista, indicating a significant increase in smart supply chain management.

IoT in supply chain automation improves visibility and control over inventory and shipments. Smart sensors attached to products or delivery vehicles provide real-time data that can help reduce delays, in turn improving inventory management and optimizing delivery routes.

FIND OUT MORE: Optimizing Supply Chain Management: Benefits of AP Automation

What Is the Role of Autonomous Mobile Robots in Supply Chain Automation?

Autonomous Mobile Robots (AMRs) are increasingly being used in warehouses and distribution centers to automate picking, sorting, and moving inventory. Unlike fixed systems, AMRs can adapt to changing conditions, making them highly versatile for dynamic environments. By 2026, IDC predicts that the use of AMRs will be standard in over 60% of warehouses, improving efficiency, reducing labor costs, and enhancing overall productivity.

What Are Digital Twins in Supply Chain Automation?

Digital twin technology is an emerging trend where virtual models of supply chain processes are created to simulate and optimize operations. Digital twins enable companies to test scenarios, identify inefficiencies, and make data-driven decisions without disrupting actual operations.

What Are Digital Twins in Supply Chain Automation?

According to PwC, 34% of supply chain leaders believe that digital twin technology will play a key role in future supply chain optimization.

Cloud-Based Supply Chain Solutions: Optimising Supply Chain Automation

The shift to cloud-based supply chain solutions is a trend driven by the need for scalability, flexibility, and improved data collaboration among stakeholders. Cloud ERP solutions allow businesses to access real-time data, collaborate seamlessly with partners, and respond to changes more effectively.

The global market for cloud supply chain solutions is expected to reach $8.5 billion by 2027, according to MarketsandMarkets, highlighting the demand for flexible and integrated supply chain systems.

What Is Hyperautomation in Supply Chain Automation?

Hyperautomation refers to the combination of multiple technologies like AI, ML, RPA, and IoT to fully automate end-to-end supply chain processes. Hyperautomation aims to create an intelligent supply chain with minimal human intervention.

By combining these technologies, businesses can automate decision-making, improve resilience, and maintain high levels of efficiency across supply chain functions.

LEARN MORE: ERP Automation Software: Improve the Financial Supply Chain

How Can Businesses Benefit from Predictive Maintenance in Supply Chain Automation?

Another trend is predictive maintenance, where IoT and AI technologies are used to predict potential failures in equipment and take proactive measures before issues arise. This trend is gaining traction in supply chains involving production facilities, where unplanned downtime can lead to significant delays and costs.

Predictive maintenance helps minimize disruptions and optimize the performance of machinery, ultimately improving overall productivity.

As you can see, the latest trends in supply chain automation can cause improved operational efficiency, enhanced visibility, and greater agility in managing the complexities of global supply chains. By staying ahead of these trends, businesses can achieve a competitive edge.

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Workflow Automation: A Vital Role in Supply Chain Automation

Workflow automation plays a vital role in optimizing processes across the supply chain by reducing manual effort, increasing efficiency, and improving the accuracy of tasks. By automating repetitive workflows—such as order processing, inventory tracking, and shipment scheduling—companies can significantly cut down on the time required to manage these tasks and reduce the risk of human error.

Workflow automation helps supply chains to be more agile by providing real-time data, which allows businesses to make timely decisions. This in turn helps respond faster to changes in demand or disruptions.

According to McKinsey, companies that use supply chain automation see an improvement of 20-30% in productivity and a significant reduction in operational costs.

Additionally, workflow automation enables seamless communication between different parts of the supply chain. It integrates various functions, such as procurement, warehousing, and distribution, into a single, coherent system, allowing for end-to-end visibility.

This level of connectivity helps prevent bottlenecks, reduce delays, and ensure that products reach customers on time.

Overall, workflow automation empowers businesses to streamline their supply chain operations, enhance productivity, and gain a competitive edge by making processes faster, more predictable, and more responsive to the market’s demands.

Final Thoughts: The Future of Supply Chain is Automated

Supply chain automation is no longer a luxury—it’s a necessity for businesses that want to remain competitive in today’s fast-paced environment. Automation in the supply chain can lead to 50% faster order processing, a 20-30% reduction in operational costs, and improved customer satisfaction through enhanced service delivery, according to McKinsey.

By embracing trends like AI-driven analytics, robotic process automation (RPA), and end-to-end workflow optimization, businesses can reduce risks, improve efficiency, and gain real-time insights into their operations.

The time to embrace supply chain automation is now—companies that invest in these technologies are positioning themselves to thrive in the future by achieving faster processes, cost savings, and a more resilient supply chain.

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