Automation In Logistics - Opportunity Or Challenge

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What is Automation in Logistics?

Logistics encompasses all activities from raw material warehousing, outbound logistics, storage, and packaging, to transportation. Thus, automation in logistics is the process of applying technological advancements to the operational processes of the logistics chain.

Typically, logistics automation occurs within factories or large distribution centers, focusing primarily on tasks handled by modern technical means to reduce manual labor and shorten processing times. It especially minimizes the risk of damage and losses to the lowest possible level.

Why Automate in Logistics?

The importance of automation in logistics is increasingly emphasized as the COVID-19 pandemic disrupts and breaks numerous supply chains. The question arises: Why should businesses automate logistics?

• Customer demands are steadily increasing. Specifically, customers require faster and more accurate services.
• Manual operations in the processing phase no longer meet market requirements.
• The entire logistics operation process, from warehousing, storage, packaging, and transportation to distribution, requires more precise calculations and adjustments in the Industrial and Digital Age.
• A seamless, fast, and efficient logistics experience creates a competitive advantage for businesses operating in this field.

These impacts pose a challenge in forming automation requirements for logistics operations.

Automation in logistics is a factor promoting sustainable growth

Opportunities for Businesses Applying Automated Logistics

Reduced Operational Costs

Redirecting robot-assisted material handling operations and technology-controlled "just-in-time" platforms in warehouses primarily aims to reduce manual labor and processing times.

Strengthened Competitive Capabilities

Technological capabilities are the key to unlocking seamless logistics operations. Once order processing times are shortened, the organization's competitive advantage is quickly affirmed and strengthened.

Minimized Excess

Technology facilitates inventory checking and monitoring based on the most transparent standards. Post-automation ensures that inventory is used to its fullest potential, minimizing waste. Using automated management software helps prevent production and inventory from exceeding consumption or falling short of market demand.

Error Prevention

Even the smallest errors can lead to significant losses. Somehow, post-automation allows for automatic access to the storage system. All storage data is accurate, without errors. Cases of damaged inventory are quickly detected and handled promptly.

Synchronized Management Information

Continuous information updates avoid data errors or dispersion, reducing processing time.

Improved Customer Service

While attracting new customers is essential, retaining existing customers is equally important. Automation aspects expedite the packaging and transportation processes, providing a foundation for meeting customer needs under optimal conditions.

Ensured Transparency of Information

Transparency is the key to any business operation. Without it, it's challenging to determine accurately what is wrong and why. Automation provides a clearer display of inventory and shipping data, ensuring greater transparency. With transparency, subsequent business decisions are better, bringing more benefits to the company.

The company enjoys many benefits from setting up automatic warehouses

Challenges When Automating Logistics

No one can deny the advantages of automation. However, every opportunity also comes with challenges:

High Costs

The average cost of investing in logistics automation is relatively high. They are 3-4 times higher than usual standards. Securing large budgets is a significant issue many businesses face, especially small and medium-sized enterprises.

Lack of Suitable Technical Personnel

The process of transitioning and operating technology in the logistics chain demands high-quality training. Meanwhile, the current conditions do not allow for the smooth operation of the management chain, posing many difficulties.

In which Logistic Automations are Effective?

Transportation: Logistics automation is present in transportation operations, especially in road transportation, through the process of loading and unloading goods, saving up to 50% of time and energy using automated robots.

Storage Warehouse: Automated Storage and Retrieval Systems (ASRS), and automated storage systems using Shuttle robots for safe heavy cargo circulation within the warehouse.

Organization and Data Management: Information systems provide alerts, support planning, and management of supply chain components to ensure the smoothest flow of goods.

When automation in logistics is no longer a phenomenon, it becomes a modern trend in supply chain operations. Businesses should seek appropriate solutions with the appropriate strategic goals to "restrain" and counter challenges, as well as maximize the advantages they bring. Hopefully, this article has provided you with the most comprehensive overview of automation in the logistics domain.

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