The opportunity to achieve upper-end operational excellence and maximize logistics efficiency lies within the proper deployment of automation in supply chain systems. Automation within the supply chain can be a double-edged sword. Too much automation can lead to excess costs, and poor management of servers could easily result in soaring IT maintenance spend and hassle. However, the best way to tap more automation in supply chain processes is through the application of software-as-a-service (SaaS) platforms, including SaaS-based transportation management systems (TMS).
Why Do Companies Want More Automation in Supply Chain Processes?
The rationale for the use of automation in supply chain processes is simple and relies on basic business principles. Automation reduces the amount of manual work involved in handling key supply chain functions. Unfortunately, the wide-scale deployment of automation in supply chain processes remains elusive for most supply chains. According to Supply Chain Dive:
Look to SaaS-Based TMS to Leverage More Automation Capabilities
The value of using SaaS-based TMS to leverage more automation in supply chain processes goes well beyond the iconic notion of robots in the warehouse and moving freight. Automation in supply chain processes includes the use of robotic process automation (RPA), which can handle many of the virtual tasks, and enabling turnkey logistics management.
How Automation Benefits Every Aspect of Supply Chain Management
- Lower labor costs to respond to manual quote requests and status inquiries.
- Increased data shareability and actionability through intuitive systems that connect data within the existing platforms to third-party or embedded analytics capabilities.
- Achievement of sustainability and “green” supply chain management that reduces environmental impact and streamlines workflows.
- Access to real-time information from systems that seamlessly share data, acting on it when necessary.
- Self-optimizing systems that enable ongoing route optimization and promote significant cost reductions in freight management.
- Self-validating systems that speed payment processes and reduce the hassle in managing audits, approving payment for invoices, submitting chargeback requests, and much more.