In this article, we will discuss the intricacies of autmation in Supply Chain Manangement.
Status Quo:
Currently, the B2B automation of supply chain management frameworks over the internet requires custom implementations. Having standard protocols for such automation will help reduce TTM significantly. We will need both technical as well as business standards.
Why Automate SCM:
Every business faces global pressure to increase their profitability. Cost Reduction could seem like a viable approach but actions like cutting on manpower, reducing capabilities of computer center might affect the entire company negatively.
Automation software would be a better alternate in such situations.
Automation leads to:
Cost Reduction
By reducing the manpower needed, the error margin incurring due to human intervention etc.
Productivity
As the system runs 24×7, without fatigue and also gathers valuable data which can be analysed by other processes and departments to improve productivity.
Availability
Automation is as effective as the underlying hardware, internet connectivity and maintenance of the system. If the connectivity part is taken care of, there are no shifts for this system, it’s at work without a break.
Reliability
Unlike its human counterparts, an automated system is highly reliable as there is a minimal margin of error.
Performance
Automation when in combination with artificial intelligence, leads to unmatched performance and consistent information flow among all parties of the supply chain management system.
