Supply Chain : Automation

02-May-2024 Auth.-Sanjay Bohra

Introduction

Streamlining Supply Chain Operations Through

Automation:-

Agenda:-
► Current Supply Chain Challenges
► Overview of Automation Technologies
► Use Case: Implementing Automation
► Automation Implementation Process
► Benefits of Automation Implementation
► Case Study Results “In today's rapidly evolving
► Future Opportunities business landscape, the
efficient management of
supply chain operations is
paramount to success. This
presentation will delve into
how automation
technologies revolutionize
traditional supply chain
processes, addressing
challenges, exploring
implementation strategies,
and uncovering the
transformative impact on
Challenges in Traditional Supply Chain Operations

Manual processes:- Inefficiencies: Errors and delays:

► Reliance on manual data ► Lack of automation results ► Manual processes are
entry and paper-based in inefficiencies across the prone to human errors,
documentation slows down supply chain, including leading to delays in order
operations and increases excess inventory, processing, inventory
the likelihood of errors. inefficient use of resources, management, and delivery.
and suboptimal routing.
Imperative of Automation for Enhanced Performance

Efficiency Boost:- Cost Savings:-

► Automation streamlines ► Automation can streamline
processes, reducing reliance on processes, reduce errors, and
manual labor and tedious optimize resource utilization,
paperwork, thus speeding up leading to significant cost
operations and minimizing savings across the supply
errors. chain while enhancing
Manual processes:- customer satisfaction.
Collaborative
► Automated systems ensure
data accuracy and Efficiency:-
consistency, reducing the risk ► Integrated, automated
of human error and improving functions share data
the reliability of information between supply chain
across the supply chain. partners and enhance
collaboration
Real-time Visibility::- Employee Safety :-
► Robotic automation
► Automation provides real-time significantly reduces safety
insights into inventory levels, risks for employees by
order statuses, and minimizing their exposure to
production schedules, potentially hazardous
enabling better decision- environments and activities.
making and responsiveness to
changing demands.
Automation Technologies in Supply Chain Management
1- Robotic Process
Automation :-
Application:
► Automates repetitive tasks like data entry, order
processing, and invoice management.
► Integrates with existing systems to streamline
workflows.
► Executes rule-based processes with high accuracy
and consistency.

Impact:
► Increases operational efficiency by reducing
manual labor and processing time.
► Minimizes errors and improves data accuracy,
leading to better decision-making.
► Frees up employees to focus on higher-value tasks,
such as customer service and strategic planning.
Automation Technologies in Supply Chain Management
2- Warehouse
Automation :-
Application:
► Implements automated storage and retrieval systems
(AS/RS) for efficient inventory management.
► Utilizes robotic picking systems to fulfill orders
accurately and quickly.
► Deploys conveyor systems for seamless material
handling within the warehouse..

Impact:
► Optimizes warehouse operations by reducing order
fulfillment times and labor costs..
► Maximizes storage capacity and improves
inventory accuracy.
► Enhances order accuracy and reduces picking
errors, resulting in higher customer satisfaction.
Automation Technologies in Supply Chain Management
3- Autonomous Vehicles and
Drones:-
Application:
► Utilizes autonomous vehicles for transporting goods
within warehouses and across distribution centers..
► Deploys drones for inventory management,
monitoring, and delivery tasks.
► Integrates with warehouse management systems
(WMS) for seamless coordination and control.

Impact:
► Increases transportation efficiency by reducing
delivery times and costs.
► Enhances safety by minimizing the risk of
accidents and injuries associated with manual
handling.
► Improves overall supply chain agility and
responsiveness to changing demand patterns.
Automation Technologies in Supply Chain Management

4- Artificial Intelligence (AI) and Machine

Learning (ML) algorithms:-
Application:
► Applies AI and ML for demand forecasting, inventory
optimization, and supply chain analytics.
► Utilizes predictive analytics to identify trends,
patterns, and potential risks.
► Integrates with enterprise resource planning (ERP)
systems for real-time decision support.

Impact:
► Improves demand forecasting accuracy, leading to
reduced stockouts and excess inventory.
► Optimizes inventory levels and reduces carrying
costs, improving working capital efficiency.
► Enables proactive risk management and strategic
decision-making, enhancing overall supply chain
performance.
Use Case : Implementing Automation

Company Background :-
► Tech ware Solutions Inc. is a globally recognized leader in the electronics industry, specializing in the
design, manufacturing, and distribution of cutting-edge consumer electronics including smartphones,
tablets, and laptops. With a robust global presence, Tech Ware Solutions operates an extensive and
diversified supply chain network spanning multiple continents.“

Objectives of Automation
Implementation:-
► Tech Ware Solutions aims to streamline its supply chain operations through automation to achieve
several key objectives:

► Cost Reduction: Automation is expected to reduce labor costs associated with repetitive manual tasks, such as
order processing and inventory management.
► Improved Accuracy: By minimizing human intervention, automation can enhance accuracy in order fulfillment,
reducing errors and minimizing the likelihood of stockouts or overstocks.
► Increased Efficiency: Automation will optimize the flow of goods throughout the supply chain, leading to faster
order processing, reduced lead times, and improved overall efficiency.
Scope Of Automation Implementation

► Tech Ware Solutions implements automation across various aspects of its supply chain
operations:“
Order Processing :-
► RPA bots can be programmed to extract order information from emails or online forms, validate orders against
predefined criteria, and input data into the company's ERP system for further processing.
► RPA bots can automate the extraction of invoice data, perform validation checks, and update accounting systems,
reducing manual effort and minimizing errors.
► RPA can be used to automate data entry tasks such as updating inventory records, tracking shipments, and
processing returns, improving data accuracy and operational efficiency.
► AI-powered systems can analyze customer data and purchasing patterns to personalize order processing,
enhancing efficiency and customer satisfaction.

Inventory Management :-
► Automated systems continuously monitor inventory levels in real-time across multiple warehouses and distribution
centers.
► RFID technology and barcode scanners are utilized for automated inventory tracking and replenishment.
► Machine Learning algorithms analyze historical data and demand forecasts to optimize inventory levels, reducing
stockouts and excess inventory.
Logistics :-

► AI-driven dynamic routing algorithms optimize delivery routes based on factors such as traffic conditions, weather
forecasts, and delivery priorities.
► Autonomous vehicles and drones are deployed for last-mile delivery, reducing delivery times and transportation
costs.
► RFID technology and GPS tracking systems provide real-time visibility into the movement of goods throughout the
supply chain, improving logistics efficiency and accuracy.
Automation Implementation Process
Assessment of Existing
Processes: Training Process:

► Before diving into automation, it's crucial to ► Introducing automation into your
understand the current state of your supply supply chain requires a collaborative
chain. This involves a thorough evaluation effort from your workforce.
of existing processes to pinpoint Comprehensive training programs are
bottlenecks, inefficiencies, and areas ripe essential to equip employees with the
for improvement. Through detailed knowledge and skills needed to
analysis, you'll uncover opportunities to embrace and leverage new
streamline operations and enhance overall technologies effectively. By investing
efficiency. in training, you empower your team to
adapt to change and drive continuous
improvement.

Selection of Automation Integration with Existing

Technologies and Vendors: Systems:

► Once you've identified areas for ► Seamless integration is key to harnessing

automation, the next step is to explore the full potential of automation. This step
suitable technologies and vendors. This involves aligning chosen automation
involves diligent research, considering technologies with your organization's
factors such as functionality, scalability, existing IT infrastructure and software
and compatibility with your organization's systems. By ensuring compatibility and
needs and budget. By choosing the right interoperability, you create a cohesive
automation solutions and reliable vendors, ecosystem where automation enhances,
you lay a solid foundation for successful rather than disrupts, your operations
implementation.
 Benefits of Automation
Increased Efficiency and Cost Savings Through Labor
Productivity: Optimization

► Automation streamlines processes, ► Automation reduces reliance on

eliminating manual tasks and manual labor, resulting in
accelerating operations. This significant cost savings. By
boosts productivity as employees automating repetitive tasks,
can focus on value-added tasks, organizations optimize resource
driving overall performance. allocation and lower labor costs.

Improved Customer Satisfaction:

Reduction in Errors and Delays:

► Automation enhances customer

service by enabling faster order
► Automation standardizes processes, processing, accurate inventory
minimizing human error and ensuring management, and timely deliveries.
consistency. Tasks executed by This fosters loyalty and satisfaction,
automated systems are precise, driving repeat business
leading to fewer mistakes and
smoother workflow..
Case Study Results: Enhancing Supply Chain Performance through
Automation
► At Tech Ware Solutions, the integration of automation technologies has yielded profound
improvements in supply chain efficiency, accuracy, and cost-effectiveness. Below, we present
specific examples and metrics showcasing the impact of automation implementation:
Percentage Reduction in Processing Times:-
► Initial State: Before the adoption of automation, Tech Ware Solutions faced considerable processing times, with an
average of 24 hours required from order receipt to confirmation
► RPA Implementation: Following the introduction of Robotic Process Automation (RPA) for order processing, there was a
remarkable reduction 50% to 12 hours
► After ML-Driven Optimization: Further reduction by 20%, resulting in an average processing time of 9.6 hours.

Increase in Order Accuracy Rates:

► Initial State: Prior to automation, Tech Ware Solutions encountered occasional errors in order entry and fulfillment,
resulting in an order accuracy rate of approximately 92%.
► After AI-Powered Systems Implementation: Order accuracy rate improved to 98%.

Decrease in Labor Costs:

► Cost Reduction Through Automation: Labor costs reduced by 30%.
► Specific Example: RPA bots replaced the need for three full-time employees, resulting in significant cost savings.

Improvement in On-Time Delivery Performance:

► Initial State: Tech Ware Solutions previously grappled with meeting on-time delivery targets, evidenced by an on-time
delivery rate of approximately 80%.
► AI-Driven Dynamic Routing and Logistics Optimization: Post-automation, the implementation of AI-driven dynamic
routing and logistics optimization systems, the on-time delivery rate surged to over 95%
Future Opportunities in Supply Chain Automation:-
Integration of Emerging
Technologies:

► Explore the integration of automation

systems with cutting-edge
technologies like IoT (Internet of
Things) and blockchain. By leveraging
IoT sensors and devices, businesses
can capture real-time data across the
supply chain, enabling predictive
maintenance, inventory optimization,
and enhanced visibility

Expansion into Additional Areas:

Collaboration for Interconnected

Networks:

► Extend the scope of automation beyond

traditional functions to encompass
critical yet often overlooked areas such ► Foster collaborative partnerships with
as last-mile delivery and predictive industry peers, suppliers, and logistics
analytics. Automating last-mile delivery providers to establish interconnected,
processes, including route optimization, automated supply chain networks. By
scheduling, and delivery tracking, can sharing data, resources, and expertise,
improve efficiency, reduce costs, and businesses can create seamless end-
enhance customer satisfaction. to-end automation solutions that span
across multiple stakeholders and
functions..
THANK YOU

The first rule of any technology used in a business

is that automation applied to an efficient operation
will magnify the efficiency." - Bill Gates