Intelligent Automation (IA) is revolutionizing supply chain management by combining artificial intelligence, machine learning, and robotic process automation. This cutting-edge approach streamlines operations, reduces costs, and enhances efficiency. With such advanced business intelligence solutions, you can leverage real-time data and predictive analytics. Yes, there are many other benefits that you can utilize in your supply chain business. From demand forecasting to quality control, we are going to tell you ten benefits of applying IA to your business. Hopefully, it offers a competitive edge in today’s fast-paced business landscape. So, let’s dive in:
What is Intelligent Automation?
Intelligent Automation (IA) is a cutting-edge approach that combines artificial intelligence, machine learning, and robotic process automation to streamline operations. It is not like traditional automation because it has cognitive capabilities.
In the supply chain and manufacturing industries, IA can handle complex tasks such as:
- Demand forecasting
- Inventory optimization
- Predicting maintenance needs
- Quality control
- Route planning
Moreover, AI-powered custom software solutions can process vast amounts of data from various sources to provide real-time insights and recommendations. So you can expect more accurate predictions and faster response times to market changes. It offers various benefits; let’s dive into some of the advantages that you can get from investing in intelligent automation in your supply chain and manufacturing business.
Benefits of Automating Processes in the Supply Chain
Instead of relying on traditional enterprise software solutions, take advantage of advanced artificial intelligence and machine learning capabilities to boost your automated system. Here are the main benefits:
1. Improved Efficiency
Intelligent automation significantly improves efficiency in supply chain management. It streamlines processes and reduces errors. For example, in warehouse operations, automated guided vehicles (AGVs) can efficiently pick and transport items, reducing manual labor and minimizing picking errors. This automation can increase picking accuracy from 95% to 99.9%, drastically improving overall operational efficiency.
2. Cost Reduction
Intelligent automation significantly reduces labor and operational costs. Research from Deloitte and Blue Prism indicates that IA can cut business process costs by 25%-40% on average. For example, automating HR tasks like payroll and onboarding can reduce labor costs, while AI-driven process optimization minimizes resource waste. Overall, investing in building custom software solutions ensures a higher ROI than traditional automation techniques.
3. Reduced Risks and Errors
Reducing risks and errors is a challenge for any supply chain business, especially in pharmaceutical products. Here, intelligent automation plays a vital role because it can achieve up to 99.9% accuracy in medication sorting and dispensing. Even in inventory management, AI-driven forecasting reduces stockouts and minimizes costly errors.
Read more, What Manufacturers Should Know Before Investing in Automation?
4. Improved Customer Service
Do you know intelligent automation can even help you in customer service? AI-powered enterprise software solutions offer faster and more accurate order processing. For instance, Amazon’s use of AI and robotics in its fulfillment centers has reduced order processing times from hours to minutes. Their automated system can locate, pick up, and pack items with 99% accuracy. It leads to same-day or next-day deliveries for many customers. This efficiency has contributed to Amazon’s high customer satisfaction rates, with 89% of customers reporting positive experiences, according to a recent survey.
5. Better Visibility and Transparency
IA also enhances transparency, especially when you are using blockchain for real-time insights and tracking. For example, Walmart’s use of blockchain based supply chain software allows them to trace the origin of products in seconds. As a result, it reduces food waste and enhances food safety. Real-time tracking also helps in finding the right solutions and better inventory management.
6. Inventory Optimization
AI powered robotic process automation maintains optimal inventory levels and reduces excess stock. It leverages real-time data and predictive analytics. Businesses can align inventory with actual demand, minimizing holding costs and freeing up warehouse space. It leads to more efficient operations, such as:
- Real-time monitoring: Continuous tracking of inventory levels.
- Demand forecasting: Accurate predictions based on historical data and trends.
- Automated alerts: Notifications for slow-moving or obsolete items.
- Reduced holding costs: Lower expenses related to excess inventory.
- Improved space utilization: Efficient use of warehouse space.
7. Scalability
Automated systems provide exceptional scalability. It efficiently manages increased workloads during peak times. Business intelligence solutions dynamically automate the process to ensure seamless operations, even during demand surges. This flexibility allows businesses to adapt quickly to market changes and customer needs.
Also Read, Unlocking the Potential of Intelligent Automation: A Guide for Enterprises
8. Improved Data Security
First, you can reduce human touchpoints to minimize the risk of data breaches. For instance, you can use blockchain to create tamper-proof records. Moreover, the AI-powered threat detection systems accurately identify and respond to potential security breaches in real-time. So it protects sensitive supply chain data more effectively.
9. Adherence to Regulatory Compliance
A large scale supply chain business must invest in automated AI-based software to follow all the industry regulations. Predictive analytics and automated incident responses also help in proactive risk management. You can expect other features, such as:
- Automated Data Entry and Processing
- Continuous Monitoring and Automated Reporting
- Manage Compliance-related Documents
- Predictive Analytics and Incident Response
- Supplier Evaluation and Policy Enforcement
10. Continuous Improvement
Lastly, you need to continuously improve your automated tools. In this case, the combination of AI & ML helps in real time data collection, analysis, and improvement of the process, but you still may need human interaction to set the right methods suitable for your business. Such ongoing refinement boosts performance and maintains an efficient supply chain operation.
In the End
Investing in Intelligent Automation is a strategic move for businesses looking to stay ahead in the supply chain industry. By automating your processes and leveraging AI and ML capabilities, your business can achieve significant benefits, including improved efficiency, cost reduction, reduced risk, and better visibility. As technology continues to advance, IA will become increasingly crucial for maintaining a competitive edge. So consult with business intelligent solutions provider to embrace this transformative approach and drive long-term success in the ever-evolving world of supply chain management.
