To some, the word “automation” strikes fear. For others, it means hope.
Logistics leaders are seeking new ways to use supply chain automation to address the evolution happening within our industry. According to IBM:
- Six out of 10 executives are investing in automation centers to boost workforce productivity and agility.
- 89% of executives plan to invest in automation with generative AI. This involves using AI to produce content, images, and data.
- Responding to real-time demand shifts is a top operational priority (51%) over the next three years for executives.
While automation promises significant advancements, it’s crucial to understand the existing problems in logistics that these technologies aim to solve.
Existing Problems Logistics Automation Could Play a Role in Solving
A study by Precedence Research predicts that the global logistics automation market will reach USD 217.26 billion by 2033. This projection indicates that the market will grow significantly in the coming years. Companies in the logistics automation industry can expect to see increased opportunities for growth and expansion. The findings of the study indicate a positive outlook for the future of the global logistics automation market.
This doesn’t change the reality that the economy is suffering a significant blow. Supply chain news sources are reporting that businesses are shutting down. A decrease in trucking jobs and an increase in diesel prices are evident. These issues, along with various others, indicate problems in logistics, which is why innovating operations through automation is crucial.
EASE closely monitors market trends to stay strategically positioned in the changing landscape. Innovation serves as our driving force, compelling us to keep up with automation advancements consistently.
Automated Logistics Systems: The Unexplored Possibilities of Time and Cost Savings
At its core, automation embodies the seamless execution of tasks that, traditionally, have been labor-intensive and repetitive. This includes a wide range of functions like manual data entry, order processing, and inventory management.
The adoption of automation technologies translates into a substantial reduction in the human hours required to manage these tasks. This efficiency gain is not just a matter of time saved but also translates into cost savings for companies. Automation guides businesses towards reduced costs, increased overall efficiency, and much more:
- Streamlines supply chain processes, mitigating the chances of bottlenecks and delays that can inflate operational costs.
- Reduces otherwise inevitable human error, which can be expensive to fix.
- Ensure that inventory levels are just right, process orders correctly, and handle data carefully.
The Small Business Administration (SBA) found that automating routine tasks can lead to cost savings of up to 80%. DHL also reports a saving of 60% in booking costs – AI can instantly search options, compare costs, and book shipments faster than humans using machine learning and predictive analytics.
In this light, the untapped potential of automation in saving time and money is immense. Companies can benefit from automation and human-centric roles by shifting resources from repetitive tasks to strategic functions.
Elevate Talent, Reduce Repetitive Work
Of course, the pressing concern on everyone’s mind is: What about my job? Will automation replace me?
Experts estimate that by 2025, 85 million jobs could be at risk of elimination. But this phenomenon of innovation rendering old jobs unnecessary or requiring workers to upskill is not new. In 2018, 60% of jobs were new since 1940, according to MIT’s David Autor.
But this is where leadership must make a choice. Some people think automation means replacing people, but successful logistics leaders know we need people to succeed. We should use automation to help employees enhance their skills and abilities. This can lead to increased happiness and innovation in their jobs because they have the bandwidth to do so.
We’ve already established that automation technologies help reduce the amount of repetitive tasks that employees have to do. Ultimately, this makes the workday more enjoyable. These tasks, while essential, often require minimal creative input or decision-making.
In simpler terms, they waste time that could be dedicated towards innovation and strategy. This means generating ideas, collaborating, and implementing plans are now more attainable than ever before.
The reallocation of human resources from mundane activities frees up time for employee engagement and professional development. Employees can now channel their skills and energies toward tasks that demand higher cognitive engagement and creativity. This transition will boost job satisfaction and foster an environment where innovation flourishes.
This shift in task allocation has implications beyond individual employee satisfaction and personal development. It improves the team’s ability to work together better and handle supply chain challenges more effectively.
Employees who focus on problem-solving, strategic planning, and innovation help organizations handle challenges, take advantage of opportunities, and adjust to changing market demands. This leads to improved performance and adaptability in the face of obstacles. By prioritizing these key areas, employees can contribute to the overall success and growth of the organization.
Automation in supply chain operations is a strategic way to improve efficiency and save costs. It represents a profound investment in the organization’s greatest asset: its people. When employees are no longer stuck doing repetitive work, companies can operate more efficiently. This results in a motivated, engaged team that is eager to generate fresh ideas.
Supply chain automation can help organizations grow, be more resilient, and gain a competitive edge. This approach demonstrates the benefits of using automation in the supply chain. It can lead to growth, increase resilience, and provide a competitive advantage for organizations.
Automation With EASE
At EASE, we value innovation and explore how the latest technologies, including automation systems, fit into our business. Automation is not about eliminating jobs but elevating our workforce and positions. It enhances efficiency, reduces errors, and drives sustainability, ultimately benefiting our employees and customers.
Our research shows that automation positively impacts operations, increases employee satisfaction, and exceeds customer expectations. For instance, our deployment of automated trucking with real customer loads demonstrates these benefits in action.
We are committed to automation in two key areas:
- Automating Internal Duties: We use automation for repetitive tasks in accounting and finance, allowing us to remain competitive and pass on savings to our customers.
- Investing in Automated Trucking: By providing critical details like weather, road closures, and alternate routes, we help our team plan the best routes and travel times accurately.
How Automation Empowers Our Customer Service and Support
At EASE, humanity and technology work hand in hand to drive informed decisions. We prioritize human interactions and partnerships while leveraging technology to enhance our work processes without obstructing our connection with customers nationwide.
Automation allows our teams to focus on being strategic logistics experts rather than getting bogged down by repetitive tasks. We embrace new technologies not just for the sake of innovation but to improve our industry and support those who work within it.
Steering Toward Safety: Automation in Trucking
Human error is a leading cause of road accidents. Automated driving technologies and advanced logistics software aim to significantly reduce these potentially lethal mistakes. Automated trucking offers a path to safer highways, protecting both cargo and, more importantly, human lives.
Routing and scheduling can be optimized through algorithms that calculate the most efficient paths, considering traffic patterns, weather conditions, and delivery windows. These optimizations ensure timely deliveries, lower fuel consumption, and reduce carbon emissions, highlighting the environmental benefits of automation in logistics.
We are committed to driving change in the logistics industry. Here are some automated trucking projects EASE is involved in:
Ohio Rural Automated Driving Systems (ADS) Project
The ADS Project collects data on how automated semi-trucks, connected by AI technology, react to real-world scenarios such as winding roads and hilly terrain within rural settings. EASE is proud to be the first to deploy automated trucking technology on customer freight shipments in the U.S.
I-70 Truck Automation Corridor Project
EASE Logistics is a host fleet partner for DriveOhio, the Ohio Department of Transportation, and the Indiana Department of Transportation’s deployment of Automated Driving Systems (ADS) on the I-70 Truck Automation Corridor. This 166-mile stretch of Interstate 70, between Columbus and Indianapolis, will see the deployment of partial automation, including platooning and high automation.
These projects are collecting data to determine the positive impact on:
- Safety: Improving truck crash avoidance capabilities and reducing driver stress.
- Environment: Reducing fuel consumption and emissions output.
- Efficiency: Increasing labor productivity, thereby earning a positive return on investment.
- Acceptance: Using data, testing, deployment, and analysis to showcase the potential of truck automation as a valid direction for the future of logistics and the supply chain.
These initiatives are designed to demonstrate the efficacy of automation technologies and tackle the complex challenges facing today’s supply chain landscape. Automated trucks can improve fuel savings, reduce greenhouse gas emissions, and increase road safety. Ideally, these projects will result in a more agile, responsive, and robust supply chain capable of meeting the demands of a dynamic market environment.
Getting Started with Supply Chain Automation
Automation saves cost and time, enhances strategic employee contributions, increases job satisfaction, and plays a critical role in a sustainable supply chain.
If you’re exploring ways to incorporate automation into your supply chain, our experts suggest following the steps below:
- Execute a Thorough Needs Analysis: Start by analyzing your current supply chain management to detect inefficiencies and bottlenecks. This involves mapping existing processes, gathering insights from stakeholders, and evaluating performance indicators.
- Examine Your Goals, Mission, and Vision: After identifying areas for improvement, align them with your overall goals and how automation fits into your mission and vision.
- Identify Prospects for Automation: Using insights from your analysis, pinpoint areas where automation could introduce significant improvements. Focus on repetitive, labor-intensive activities prone to errors, such as data input, order processing, and invoice matching.
- Define Specific Objectives and Performance Indicators: Set precise, measurable targets for your automation efforts. Establish key performance indicators (KPIs) to monitor progress and assess effectiveness. Objectives might include reducing processing time, decreasing error rates, and improving customer satisfaction.
- Research Partners for Collaboration: Look for organizations currently excelling in automation and explore opportunities to learn from and collaborate with them. Partnerships can offer excellent opportunities for publicity, relationship building, and support when integrating automation.
Join the Logistics Automation Movement with EASE!
We’re looking for partners like you to help demonstrate how connected and automated semi-trucks can improve safety for drivers, passengers, freight, and communities. Contact our team today and speak with an expert on how supply chain automation can reduce your bottom line.
