An automated supply chain refers to the use of artificial intelligence (AI) and machine learning to streamline a supply chain’s processes, making these processes – and by extension a business – more efficient. The benefits are myriad, yet only 12% of supply chain professions report that their organisations are currently making use of AI in their supply chains with 60% claiming they’ll implement AI within the next five years. But the strange thing is this tech is already here. Rather than planning to implement it five years down the line, why not gain competitive advantage and embrace an automated supply chain now?
It's been suggested that, so far, the low adoption rates of an automated supply chain are due to the perceived complexity of AI and machine learning. In reality, its ‘complexity’ is quite simple – and far from prohibitive. AI doesn’t need to be a team of data scientists, lines of sophisticated code, and incomprehensible software to make a difference. Sometimes, it’s simply storage and fulfilment processes or bonded warehouse technology that takes the monotonous tasks out of your team’s hands – so they can focus on the big stuff.
With that in mind, here are the benefits of investing in an automated supply chain.
- Keep your business reactive
AI helps supply chains stay ahead of demand changes, price changes, and potential disruptions using historic data to create forecasts – much faster. With the current logistics landscape so prone to difficulties, this goes a long way to alleviating uncertainties and keeping a business one step ahead.
- Respond faster and more nimbly to customer demand
An automated supply chain offers real-time inventory visibility, tracking on transportation, and faster storage and fulfilment processes. Through this, it’ll work to delineate the most efficient way to get your products to a store, bonded warehouse, or customer’s doorstep – whatever the current demand is.
- Boost your bottom line
Countless efficiencies delivered by an automated supply chain work to boost your bottom line – from freeing up staff by taking care of the menial tasks to waste reduction and correct product storage and fulfilment processes. Another key aspect of AI and machine learning is that both work to prevent breakdowns: of systems, machines, and vehicles. By monitoring usage on an ongoing basis and uncovering hidden signs of impending breakdown, an automated supply chain then proactively schedules maintenance to overcome the faults.
- Handle stock more efficiently in your warehouses
With the help of AI and automated vehicles, bonded warehouse operators can handle much larger volumes of goods each day. These operators can even rely on machines to handle dangerous goods and/or heavy loads, with a reduction in harm and error. The benefit to your business? A reduction in waste and cost and an increase in productivity, to help you grow faster.
Machines aren’t taking over. Rather, an automated supply chain works collaboratively with your team to increase productivity and minimise risk. With logistics costs rising, the efficiencies that AI and machine learning can bring to your business' processes are key. With better automation, inventory forecasting, and technology-led shipping strategies, you won’t have to pass the growing logistics costs onto your customers and risk sacrificing their loyalty.
JPGL offers full-service bonded warehouse, inventory management, and shipping solutions across the entire global end-to-end supply chain – all powered by the latest technology. For a bespoke solution tailored to your business needs, contact our team today.