5 Logistics Automation Strategies You Should be Aware Of
Logistics management is one of the most crucial aspects of a business. It includes the planning, implementation and control of the movement of goods from the point of origin to the point of consumption.
With the advancement of technology, logistics automation has become an essential part of logistics management, especially in today's fast-paced business world where logistics companies are under immense pressure to deliver goods quickly and efficiently.
To meet these demands, logistics companies are turning to cutting-edge automation technologies to streamline their operations and increase productivity. From automated warehouses to self-driving trucks, automation is changing the logistics industry.
In this article, we’ll discuss the top 5 logistics automation strategies you should be aware of.
What is automation in logistics?
Automation in logistics refers to the use of technology and machinery to streamline and optimise various aspects of the supply chain, helping to increase efficiency, reduce labour costs and improve accuracy in logistics operations.
They can also help to minimise errors and delays, which can have a positive impact on customer satisfaction and overall business performance.
Automation in logistics can involve various levels of complexity, from simple barcode scanning systems to more advanced artificial intelligence and machine learning technologies.
Some examples of automated logistics systems include automated guided vehicles (AGVs) for material handling, autonomous drones for delivery, predictive analytics software for demand forecasting and inventory management, automated storage and retrieval systems (AS/RS), conveyor belts, robotic arms, and other types of equipment that can handle tasks such as sorting, picking, packing, and shipping.
How automation affects businesses
While automation can bring many benefits to logistics operations, it also requires significant investment in terms of time, money, and expertise. Companies need to carefully evaluate their needs and capabilities before implementing automated systems…
Benefits of Logistics Automation
- Increased efficiency: Automation reduces the time and effort required to complete tasks, which leads to faster and more efficient logistics processes and increased productivity by reducing the need for manual labour and repetitive tasks. This can help businesses to increase output without increasing their workforce.
- Improved accuracy: Automation reduces the risk of human error, as machines and software can perform tasks with a higher degree of precision and consistency than humans. This can help businesses to reduce errors and waste, leading to more accurate and reliable logistics management.
- Reduced costs: Automation reduces the need for manual labour, which leads to lower staffing costs and overheads. This allows businesses to operate with higher profit margins, encouraging company growth.
- Improved customer service: Automation allows businesses to provide faster and more reliable service to their customers.
Challenges of Logistics Automation
- Job displacement: Automation can lead to job displacement and changes in the workforce, as some tasks that were previously performed by humans are now being automated; businesses need to carefully consider the social and ethical implications of automation, and to plan for the impact on their employees and communities.
- Cost of implementation: Equipment and machinery to enable automation in logistics is no small investment - according to Shiphero, this can cost anywhere from $1-25 million.
“A smart warehouse facility can cost you anywhere from $1 million to $25 million depending on the technology you purchase and what needs you have. This can include upgrades with robotic conveyor belt systems, robots, inventory management software, and much more.”
With all that in mind, let’s look at the top 5 logistics automation strategies you should be aware of in logistics…
1. Warehouse Management System
A Warehouse Management System (WMS) is a software application that helps businesses manage their warehouse operations. Additionally, it can help businesses to improve inventory management, reduce labour costs and increase the accuracy of inventory tracking.
With a WMS, businesses can automate various tasks such as receiving, putaway, picking, and shipping. Automated systems such as conveyor belts, robotic pickers and automated storage and retrieval systems (ASRS) can help speed up the movement of goods, reduce the risk of errors and free up workers to focus on more complex tasks.
Additionally, automated inventory management systems can help track inventory levels in real-time, ensuring that goods are always in stock when needed, which ultimately increases customer satisfaction as this minimises delays in delivery and ensures a smooth fulfilment process.
When considering implementing a WMS, it’s important to consider how this integrates with the ecommerce platform to ensure that order data is transmitted accurately as well as efficiently and can be fulfilled. Our flexible Codept integration platform effortlessly plugs into all ecommerce platforms and warehousing systems to connect any 3PL's WMS with any merchant's shop system, whatever they are.
2. Transportation Management
A Transportation Management System (TMS) is a software application that helps businesses manage their transportation operations. This can help reduce transportation costs, optimise routes, and improve the efficiency of their transportation operations through fast and reliable order data transfer between manufacturers, wholesalers, online merchants and carriers.
With a TMS, businesses can automate tasks such as carrier selection, load planning and shipment tracking. Part of Codept logistics solution allows businesses to configure rules that automate the carrier selection process based on a number of factors, such as the size of item and delivery location - this is perfect for micro-fulfilment where localised centres can be assigned to delivery rules.
TMS software can help reduce transportation costs, improve delivery times and increase visibility of the supply chain.
3. Autonomous Vehicles
Autonomous vehicles, such as self-driving trucks, drones and delivery robots are quickly becoming a reality.
These vehicles can operate without the need for a human driver, reducing labour and fuel costs, whilst improving safety (since around 90% of road accidents are currently caused by human error!). Self-driving vehicles can also operate around the clock, increasing delivery speeds and reducing transit times.
In February 2023, Aramex, the Middle East's biggest courier company, announced the successful testing of its drone and roadside bot deliveries in Dubai as the company explores emerging delivery technologies and options to reduce its carbon footprint.
It’s a drone, it’s a bot … it’s an Aramex Delivery!
Not only do these little bots look cute but these methods of transport allow for same-day delivery AND dramatically reduce operating costs, with Amarex reporting an 18% rise in third-quarter income for 2022 as lower expenses helped to offset a dip in revenue.
Furthermore, a trial is being conducted in London to explore the use of self-driving vehicles for delivering groceries. Wayve, in partnership with Asda and Ocado, is testing autonomous vehicles on selected London postcodes with the aim of improving road safety.
Kaity Fischer, Director of Partnerships and Business Development at Wayve, believes that such vehicles could become common within the next decade. She highlighted the potential of autonomous vehicles to reduce accidents caused by human error, emphasising that they are never drowsy or intoxicated. Wayve's technology, developed using Jaguar I-Pace electric cars, will be tested on Ocado delivery routes, and a 12-month trial with Asda has already begun.
If businesses deliver locally, driverless vehicles, drone and robot delivery systems provide an excellent way to ensure fast, secure delivery, however, longer distances are better served through autonomous vehicles like self-driving trucks or driverless cars. Although they may sound futuristic, they’ve been around longer than you’d expect.
Google, a pioneer in the field, started its self-driving car project in 2009 with its autonomous vehicles completing 100,000 miles on public roads and back in 2016, Ryan Peterson, CEO of Flexport, wrote in TechCrunch “The driverless truck is coming, and it’s going to automate millions of jobs”.
4. Predictive Analytics
Predictive analytics, as part of logistics automation, has revolutionised the way logistics operations are managed today. It refers to the use of historical data, machine learning algorithms and statistical analysis techniques to generate future insights and make informed decisions.
The logistics industry has embraced predictive analytics as it helps in forecasting demand, optimising inventories and enhancing overall supply chain efficiency. By analysing data such as shipment volumes, customer behaviour and weather patterns, companies can make informed decisions about the allocation of resources, reducing delivery times and predicting potential obstacles.
Furthermore, predictive analytics enables logistics companies to identify and address potential issues proactively, reducing the likelihood of failed deliveries or unhappy customers.
By leveraging predictive analytics as part of logistics automation, companies can operate with leaner inventory and staffing levels while still meeting customer demands, resulting in higher profitability and increased customer satisfaction.
Not only can predictive analytics be used to streamline the fulfilment and last mile aspects of logistics, but also to make internal operations more efficient through predictive maintenance - by using AI to analyse data and predict maintenance needs, businesses can address issues before they affect operations and productivity.
5. Robotic Process Automation (RPA)
Robotic Process Automation (RPA) is a logistics automation strategy that involves using software robots to automate repetitive tasks. By using RPA, businesses can reduce errors, improve accuracy, and increase productivity.
With the help of software robots, RPA can streamline various logistics processes such as:
- Order processing
- Invoice processing
- Inventory management
- Order picking and palletising
- Packaging and labelling
- Shipment tracking
By automating these processes, the human workforce can dedicate more time to tasks that require critical thinking and decision-making, improving overall efficiency and reducing operational costs.
Additionally, RPA can help logistics companies meet customer demands with faster and error-free processing. The technology is poised to revolutionise the logistics industry and drive advancements in process automation, among others.
Conclusion
Logistics automation is rapidly transforming the logistics industry. By implementing cutting-edge technologies such as warehouse automation, transportation management systems, autonomous vehicles, predictive analytics, and robotic process automation, logistics companies can improve efficiency, reduce costs, and better serve their customers.
As the industry continues to evolve, staying up-to-date on the latest automation strategies will be essential for success - so be sure to start exploring how they can benefit your business.
FAQs about automation in logistics
Will logistics be automated?
Yes, logistics processes are already being automated and will continue to become more automated in the future. The use of technology and machinery to optimise supply chain operations is increasing, with advancements in areas such as robotics, artificial intelligence, and machine learning. Automation can help to increase efficiency, reduce costs, and improve accuracy in logistics operations. However, the degree of automation will depend on various factors, such as the level of investment, the nature of the business, and the regulatory environment.
How are automated technologies likely to impact the logistics industry?
Automated technologies are likely to have a significant impact on the logistics industry, as they can help to increase efficiency, reduce costs, and improve accuracy in various aspects of the supply chain.
For example, automated systems such as robotics, artificial intelligence, and machine learning can be used to optimise warehouse management, order processing, and transportation. This can lead to faster and more reliable delivery times, better inventory management, and lower labour costs. However, the adoption of automated technologies also raises concerns about job displacement and the need for re-skilling of the workforce, as well as the potential for security and privacy risks associated with the use of new technologies.
How can logistics automation benefit my business?
Logistics automation can help improve efficiency, reduce costs, and increase productivity. By automating tasks such as warehouse operations, transportation management, and inventory management, logistics companies can focus on more complex tasks and better serve their customers.
What are some challenges of implementing logistics automation?
Implementing logistics automation can be costly and time-consuming. Additionally, it may require changes to existing processes and workflows. Logistics companies should carefully evaluate the costs and benefits of automation before making any decisions.
What are some best practices for implementing logistics automation?
Logistics companies should start by identifying areas where automation can have the biggest impact. They should also carefully evaluate different automation technologies and choose solutions that are scalable and flexible. Finally, they should communicate with employees and provide training to ensure a smooth transition to automated systems.
How is RPA different from AI?
Logistics companies should start by identifying areas where automation can have the biggest impact. They should also carefully evaluate different automation technologies and choose solutions that are scalable and flexible. Finally, they should communicate with employees and provide training to ensure a smooth transition to automated systems.
Robotic Process Automation (RPA) and Artificial Intelligence (AI) are two different technologies, although they are often used together. The main difference between RPA and AI is that RPA is designed to automate repetitive, rules-based tasks, while AI is designed to simulate human intelligence and perform tasks that require cognitive abilities.
RPA is a software technology that uses bots or digital workers to automate repetitive and manual tasks. RPA bots can be programmed to perform tasks such as data entry, invoice processing, and record keeping, among others. RPA bots follow predefined rules and workflows and can execute tasks faster and with greater accuracy than humans.
On the other hand, AI is a broader category of technology that includes machine learning, natural language processing, and other cognitive technologies. AI can be used to analyse data, recognise patterns, and make decisions based on that analysis. AI can also be used to perform tasks that require cognitive abilities, such as recognising images, translating languages, and understanding natural language.
In summary, RPA is a technology used to automate repetitive and manual tasks, while AI is a technology used to simulate human intelligence and perform tasks that require cognitive abilities. While they are different, RPA and AI can be used together to automate tasks more efficiently and effectively.
Logistics management is one of the most crucial aspects of a business. It includes the planning, implementation and control of the movement of goods from the point of origin to the point of consumption.
With the advancement of technology, logistics automation has become an essential part of logistics management, especially in today's fast-paced business world where logistics companies are under immense pressure to deliver goods quickly and efficiently.
To meet these demands, logistics companies are turning to cutting-edge automation technologies to streamline their operations and increase productivity. From automated warehouses to self-driving trucks, automation is changing the logistics industry.
In this article, we’ll discuss the top 5 logistics automation strategies you should be aware of.
What is automation in logistics?
Automation in logistics refers to the use of technology and machinery to streamline and optimise various aspects of the supply chain, helping to increase efficiency, reduce labour costs and improve accuracy in logistics operations.
They can also help to minimise errors and delays, which can have a positive impact on customer satisfaction and overall business performance.
Automation in logistics can involve various levels of complexity, from simple barcode scanning systems to more advanced artificial intelligence and machine learning technologies.
Some examples of automated logistics systems include automated guided vehicles (AGVs) for material handling, autonomous drones for delivery, predictive analytics software for demand forecasting and inventory management, automated storage and retrieval systems (AS/RS), conveyor belts, robotic arms, and other types of equipment that can handle tasks such as sorting, picking, packing, and shipping.
How automation affects businesses
While automation can bring many benefits to logistics operations, it also requires significant investment in terms of time, money, and expertise. Companies need to carefully evaluate their needs and capabilities before implementing automated systems…
Benefits of Logistics Automation
- Increased efficiency: Automation reduces the time and effort required to complete tasks, which leads to faster and more efficient logistics processes and increased productivity by reducing the need for manual labour and repetitive tasks. This can help businesses to increase output without increasing their workforce.
- Improved accuracy: Automation reduces the risk of human error, as machines and software can perform tasks with a higher degree of precision and consistency than humans. This can help businesses to reduce errors and waste, leading to more accurate and reliable logistics management.
- Reduced costs: Automation reduces the need for manual labour, which leads to lower staffing costs and overheads. This allows businesses to operate with higher profit margins, encouraging company growth.
- Improved customer service: Automation allows businesses to provide faster and more reliable service to their customers.
Challenges of Logistics Automation
- Job displacement: Automation can lead to job displacement and changes in the workforce, as some tasks that were previously performed by humans are now being automated; businesses need to carefully consider the social and ethical implications of automation, and to plan for the impact on their employees and communities.
- Cost of implementation: Equipment and machinery to enable automation in logistics is no small investment - according to Shiphero, this can cost anywhere from $1-25 million.
“A smart warehouse facility can cost you anywhere from $1 million to $25 million depending on the technology you purchase and what needs you have. This can include upgrades with robotic conveyor belt systems, robots, inventory management software, and much more.”
With all that in mind, let’s look at the top 5 logistics automation strategies you should be aware of in logistics…
1. Warehouse Management System
A Warehouse Management System (WMS) is a software application that helps businesses manage their warehouse operations. Additionally, it can help businesses to improve inventory management, reduce labour costs and increase the accuracy of inventory tracking.
With a WMS, businesses can automate various tasks such as receiving, putaway, picking, and shipping. Automated systems such as conveyor belts, robotic pickers and automated storage and retrieval systems (ASRS) can help speed up the movement of goods, reduce the risk of errors and free up workers to focus on more complex tasks.
Additionally, automated inventory management systems can help track inventory levels in real-time, ensuring that goods are always in stock when needed, which ultimately increases customer satisfaction as this minimises delays in delivery and ensures a smooth fulfilment process.
When considering implementing a WMS, it’s important to consider how this integrates with the ecommerce platform to ensure that order data is transmitted accurately as well as efficiently and can be fulfilled. Our flexible Codept integration platform effortlessly plugs into all ecommerce platforms and warehousing systems to connect any 3PL's WMS with any merchant's shop system, whatever they are.
2. Transportation Management
A Transportation Management System (TMS) is a software application that helps businesses manage their transportation operations. This can help reduce transportation costs, optimise routes, and improve the efficiency of their transportation operations through fast and reliable order data transfer between manufacturers, wholesalers, online merchants and carriers.
With a TMS, businesses can automate tasks such as carrier selection, load planning and shipment tracking. Part of Codept logistics solution allows businesses to configure rules that automate the carrier selection process based on a number of factors, such as the size of item and delivery location - this is perfect for micro-fulfilment where localised centres can be assigned to delivery rules.
TMS software can help reduce transportation costs, improve delivery times and increase visibility of the supply chain.
3. Autonomous Vehicles
Autonomous vehicles, such as self-driving trucks, drones and delivery robots are quickly becoming a reality.
These vehicles can operate without the need for a human driver, reducing labour and fuel costs, whilst improving safety (since around 90% of road accidents are currently caused by human error!). Self-driving vehicles can also operate around the clock, increasing delivery speeds and reducing transit times.
In February 2023, Aramex, the Middle East's biggest courier company, announced the successful testing of its drone and roadside bot deliveries in Dubai as the company explores emerging delivery technologies and options to reduce its carbon footprint.
It’s a drone, it’s a bot … it’s an Aramex Delivery!
Not only do these little bots look cute but these methods of transport allow for same-day delivery AND dramatically reduce operating costs, with Amarex reporting an 18% rise in third-quarter income for 2022 as lower expenses helped to offset a dip in revenue.
Furthermore, a trial is being conducted in London to explore the use of self-driving vehicles for delivering groceries. Wayve, in partnership with Asda and Ocado, is testing autonomous vehicles on selected London postcodes with the aim of improving road safety.
Kaity Fischer, Director of Partnerships and Business Development at Wayve, believes that such vehicles could become common within the next decade. She highlighted the potential of autonomous vehicles to reduce accidents caused by human error, emphasising that they are never drowsy or intoxicated. Wayve's technology, developed using Jaguar I-Pace electric cars, will be tested on Ocado delivery routes, and a 12-month trial with Asda has already begun.
If businesses deliver locally, driverless vehicles, drone and robot delivery systems provide an excellent way to ensure fast, secure delivery, however, longer distances are better served through autonomous vehicles like self-driving trucks or driverless cars. Although they may sound futuristic, they’ve been around longer than you’d expect.
Google, a pioneer in the field, started its self-driving car project in 2009 with its autonomous vehicles completing 100,000 miles on public roads and back in 2016, Ryan Peterson, CEO of Flexport, wrote in TechCrunch “The driverless truck is coming, and it’s going to automate millions of jobs”.
4. Predictive Analytics
Predictive analytics, as part of logistics automation, has revolutionised the way logistics operations are managed today. It refers to the use of historical data, machine learning algorithms and statistical analysis techniques to generate future insights and make informed decisions.
The logistics industry has embraced predictive analytics as it helps in forecasting demand, optimising inventories and enhancing overall supply chain efficiency. By analysing data such as shipment volumes, customer behaviour and weather patterns, companies can make informed decisions about the allocation of resources, reducing delivery times and predicting potential obstacles.
Furthermore, predictive analytics enables logistics companies to identify and address potential issues proactively, reducing the likelihood of failed deliveries or unhappy customers.
By leveraging predictive analytics as part of logistics automation, companies can operate with leaner inventory and staffing levels while still meeting customer demands, resulting in higher profitability and increased customer satisfaction.
Not only can predictive analytics be used to streamline the fulfilment and last mile aspects of logistics, but also to make internal operations more efficient through predictive maintenance - by using AI to analyse data and predict maintenance needs, businesses can address issues before they affect operations and productivity.
5. Robotic Process Automation (RPA)
Robotic Process Automation (RPA) is a logistics automation strategy that involves using software robots to automate repetitive tasks. By using RPA, businesses can reduce errors, improve accuracy, and increase productivity.
With the help of software robots, RPA can streamline various logistics processes such as:
- Order processing
- Invoice processing
- Inventory management
- Order picking and palletising
- Packaging and labelling
- Shipment tracking
By automating these processes, the human workforce can dedicate more time to tasks that require critical thinking and decision-making, improving overall efficiency and reducing operational costs.
Additionally, RPA can help logistics companies meet customer demands with faster and error-free processing. The technology is poised to revolutionise the logistics industry and drive advancements in process automation, among others.
Conclusion
Logistics automation is rapidly transforming the logistics industry. By implementing cutting-edge technologies such as warehouse automation, transportation management systems, autonomous vehicles, predictive analytics, and robotic process automation, logistics companies can improve efficiency, reduce costs, and better serve their customers.
As the industry continues to evolve, staying up-to-date on the latest automation strategies will be essential for success - so be sure to start exploring how they can benefit your business.
FAQs about automation in logistics
Will logistics be automated?
Yes, logistics processes are already being automated and will continue to become more automated in the future. The use of technology and machinery to optimise supply chain operations is increasing, with advancements in areas such as robotics, artificial intelligence, and machine learning. Automation can help to increase efficiency, reduce costs, and improve accuracy in logistics operations. However, the degree of automation will depend on various factors, such as the level of investment, the nature of the business, and the regulatory environment.
How are automated technologies likely to impact the logistics industry?
Automated technologies are likely to have a significant impact on the logistics industry, as they can help to increase efficiency, reduce costs, and improve accuracy in various aspects of the supply chain.
For example, automated systems such as robotics, artificial intelligence, and machine learning can be used to optimise warehouse management, order processing, and transportation. This can lead to faster and more reliable delivery times, better inventory management, and lower labour costs. However, the adoption of automated technologies also raises concerns about job displacement and the need for re-skilling of the workforce, as well as the potential for security and privacy risks associated with the use of new technologies.
How can logistics automation benefit my business?
Logistics automation can help improve efficiency, reduce costs, and increase productivity. By automating tasks such as warehouse operations, transportation management, and inventory management, logistics companies can focus on more complex tasks and better serve their customers.
What are some challenges of implementing logistics automation?
Implementing logistics automation can be costly and time-consuming. Additionally, it may require changes to existing processes and workflows. Logistics companies should carefully evaluate the costs and benefits of automation before making any decisions.
What are some best practices for implementing logistics automation?
Logistics companies should start by identifying areas where automation can have the biggest impact. They should also carefully evaluate different automation technologies and choose solutions that are scalable and flexible. Finally, they should communicate with employees and provide training to ensure a smooth transition to automated systems.
How is RPA different from AI?
Logistics companies should start by identifying areas where automation can have the biggest impact. They should also carefully evaluate different automation technologies and choose solutions that are scalable and flexible. Finally, they should communicate with employees and provide training to ensure a smooth transition to automated systems.
Robotic Process Automation (RPA) and Artificial Intelligence (AI) are two different technologies, although they are often used together. The main difference between RPA and AI is that RPA is designed to automate repetitive, rules-based tasks, while AI is designed to simulate human intelligence and perform tasks that require cognitive abilities.
RPA is a software technology that uses bots or digital workers to automate repetitive and manual tasks. RPA bots can be programmed to perform tasks such as data entry, invoice processing, and record keeping, among others. RPA bots follow predefined rules and workflows and can execute tasks faster and with greater accuracy than humans.
On the other hand, AI is a broader category of technology that includes machine learning, natural language processing, and other cognitive technologies. AI can be used to analyse data, recognise patterns, and make decisions based on that analysis. AI can also be used to perform tasks that require cognitive abilities, such as recognising images, translating languages, and understanding natural language.
In summary, RPA is a technology used to automate repetitive and manual tasks, while AI is a technology used to simulate human intelligence and perform tasks that require cognitive abilities. While they are different, RPA and AI can be used together to automate tasks more efficiently and effectively.
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