Impacts of Logistics Automation on Supply Chain Management

Impacts of Logistics Automation on Supply Chain Management
5 min read
05 October 2023

In today's fast-paced digital world, logistics automation is crucial in optimising supply chain operations. The newly integrated automation has the potential to revolutionise the logistics industry that provides businesses with new levels of efficiency, accuracy and flexibility. Automating your logistics operations can help you focus on expanding your product portfolio and overall development.

Logistics automation is the process of integrating technology for optimising supply chain functions. The automation strategy helps businesses evaluate the smooth functioning at every stage. Logistics automation includes order fulfilment, inventory and transportation management, helping reduce unnecessary expenses and costs and ensuring accuracy. 

According to a report from Mordor Intelligence, a market research company, the India Warehouse Automation Market size is expected to grow from $267.07 million in 2023 to $880.98 million by 2028, at a CAGR of 26.96%.

In this blog, we will consider the various factors by which logistics automation is transforming the supply chain.

What are the Challenges in Logistics Services?

Logistics services face many challenges while delivering products from one business to another or from the business to end users. Online marketing is immensely increasing and so are the demands. To fulfil this, logistics companies face complexities in the supply chain. So, there’s a need to resolve the same for smooth delivery services in Noida, Delhi, Ghaziabad, Mumbai, Bangalore, Pune, etc. The following are the top challenges: 

Lack of Optimised Logistics Operations

People experience the convenience of ordering online and getting them at their doorstep. That’s why they frequently order products online. This means the demand for products has hugely increased, which makes it difficult for some businesses to meet the same. businesses should thus have efficient and effective logistics operations to reach their customers easily.  

Increased Complexity 

It is common to have many stakeholders in the logistics industry. This leads to the supply chain becoming more complex. If logistics management shows some negligence at any moment in the supply chain, there can be a big hurdle to delivering products smoothly. 

Labour Shortage

One of the biggest hurdles is the shortage of skilled and trained logistics executives, making it difficult for businesses to operate delivery services smoothly. Retaining skilled and trained executives can help streamline your entire logistics operations. It will encourage them to efficiently do food delivery jobs in Noida, Ghaziabad, Pune, Delhi, Mumbai, Bangalore, Hyderabad, etc.

Expensive Processes

If you don't have efficient logistics management, it may increase the cost of services. Because poor and inefficient management systems lead to ineffective supply chains.  

Poor Customer Feedback

Poor customer experience is another challenge in logistics services. If you cannot deliver products on time, your customers will become unhappy and may switch to your competitors.

Logistics Automation - Transforming Supply Chain Management

Logistics automation plays a significant role in transforming supply chain management. 

Improved Efficiency and Productivity

Efficiency and productivity can be increased by automating logistical procedures like order fulfilment, inventory management and transportation management. Advanced technologies allow businesses to execute orders quickly and precisely, track shipments, and control inventory levels, and optimise time and resources.

Enhanced Accuracy

By automating specific processes, supply chain operations improve. At the same time, the chances of error reduce significantly. Automated inventory management systems, for instance, can monitor stock levels in real-time, giving precise information on stock levels and ensuring that orders are accurately filled. 

Real-time Visibility

It helps businesses track their delivery services. It means you can keep an eye on inventories and meet the customers' demand, which changes with time. As a result, decision-making and supply chain performance, as a whole, greatly improves. Additionally, it helps businesses evaluate the time required for delivering products. This way, the entire delivery process will improve, resulting in enhanced business. 

Reduced Costs

Costs can decrease by simplifying procedures and using less manual labour. It helps businesses reduce the chance of errors, labour expenses, and increase overall efficiency by automating operations like order fulfilment and transportation management. 

Enhanced Customer Satisfaction

Businesses may deliver faster, more accurate and more effective customer service by automating logistics procedures. It can improve customer satisfaction levels and encourage them to place orders with businesses. Something that both businesses and their customers will appreciate.  

Conclusion 

So, we have discussed how logistics automation is important for businesses seeking  a cost-effective and smooth logistical solution. Automating logistics management enables businesses to reduce the risk of challenges that may occur. Furthermore, it helps businesses satisfy their customers by delivering products to them on time. Otherwise, customers can move to other businesses. If you as a business owner are looking for a reliable logistics service, handover can help you. It helps many businesses with optimised logistics operations across many cities in India.

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handover- आपका Delivery Partner handover acts as a delivery bridge between businesses and their customers. Customers place orders with businesses. handover d...
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