{"id":24066,"date":"2023-02-24T04:12:56","date_gmt":"2023-02-24T11:12:56","guid":{"rendered":"https:\/\/synergytop.com\/blog\/?p=24066"},"modified":"2026-03-25T02:45:50","modified_gmt":"2026-03-25T09:45:50","slug":"supply-chain-and-logistics-automation-the-potential-it-holds-for-your-business","status":"publish","type":"post","link":"https:\/\/synergytop.com\/blog\/supply-chain-and-logistics-automation-the-potential-it-holds-for-your-business\/","title":{"rendered":"Supply Chain And Logistics Automation – The Potential It Holds For Your Business"},"content":{"rendered":"

Supply chain and logistics have historically been a back office function. Not many organizations paid heed to how their supply chain functioned. The focus remained only on having a good product. How it was delivered to the end-user was the least of an organization\u2019s concerns.\u00a0<\/span><\/p>\n

Now, with modernization, supply chains are being rethought. That\u2019s because efficient supply chain processes not only result in a cost-saving benefit but also ensure quick responses to customers\u2019 needs.<\/span><\/p>\n

Customers don\u2019t just need a good product. They need a great experience delivered to them. And supply chain automation is one way to make it happen.<\/span><\/p>\n

But that\u2019s not all. There is more to supply chain automation<\/strong> than meets the eye. And though it is definitely a sizable investment of time, money, and effort, it is worth it.\u00a0<\/span><\/p>\n

How? Let\u2019s take a look at the potential that supply chain and logistics automation hold for your business.<\/span><\/p>\n<\/div>

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5 Key Benefits Accruing From Supply Chain And Logistics Automation<\/span><\/p><\/h2><\/span>

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1. Lower Operational Costs<\/span><\/p><\/h3><\/span>

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A <\/span>study by the Centre for Global Enterprises<\/span><\/a> suggests that upon improvement, digital supply chains can result in a 20% reduction in procurement costs, a 50% reduction in supply chain costs, and a 10% increase in revenue.\u00a0<\/span><\/p>\n

Now that should be enough motivation for businesses to automate their supply chains. This reduction in operational costs is predominantly due to increased transparency and higher visibility.\u00a0<\/span><\/p>\n

With digital automation, you can make sure all stakeholders act in the best interests of your organization by making them aware of all the supply chain specifics.<\/span><\/p>\n<\/div>

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2. Increased Productivity<\/span><\/p><\/h3><\/span>

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Does your team spend the majority of their working hours trying to locate products from the backyard while your customers still return without making a purchase?<\/span><\/p>\n

If you relate to that, your supply chain can greatly benefit from automation.\u00a0<\/span><\/p>\n

Supply chain automation will help your staff remain aware of the stock situation and manufacturing delays. And your procurement team will be much more informed about the availability and demand of products.\u00a0<\/span><\/p>\n

Thus, you\u2019ll have ample stock for high-demand goods and minimum slow-moving stocks.\u00a0<\/span><\/p>\n

Some other tell-tale signs of scope for improved productivity through supply chain automation include:<\/span><\/p>\n

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  1. Frequent manufacturing delays<\/span><\/li>\n
  2. A lot of slow-moving goods don\u2019t leave the shelves.<\/span><\/li>\n
  3. Too many out-of-stock items<\/span><\/li>\n<\/ol>\n<\/div>
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    3. Greater Operational Accuracy<\/span><\/p><\/h3><\/span>

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    It is practically impossible to remove errors from manual processes. A small mistake by your logistics partner can cost you several thousand dollars, if not more.\u00a0<\/span><\/p>\n

    With automation, you can minimize the chance of errors. And improved accuracy will soon translate to improved bottom lines.\u00a0<\/span><\/p>\n

    By just automating the order placement process, you can reduce:<\/span><\/p>\n

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    • Extra, unwanted inventory<\/span><\/li>\n
    • Out-of-stock inventory<\/span><\/li>\n
    • High cost of getting emergency deliveries<\/span><\/li>\n
    • High cost of maintaining too much inventory in-house<\/span><\/li>\n<\/ul>\n<\/div>
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      4. Greater Compliance<\/span><\/p><\/h3><\/span>

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      Supply chain automation can help you stay compliant with industry norms and government regulations as well.\u00a0<\/span><\/p>\n

      Forget getting fined by the authorities for hoarding too much or not stocking enough.<\/span><\/p>\n

      With automated supply chain management, the tasks get completed as per set rules and there is no compliance risk, at all.\u00a0<\/span><\/p>\n<\/div>

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      5. More Time-Saving<\/span><\/p><\/h3><\/span>

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      If you are still using labor-intensive processes to run your warehouses and storage units, you are wasting a lot of time. Automated supply chains don\u2019t just mean automated ordering and refilling.\u00a0<\/span><\/p>\n

      With the right robots in your arsenal, you can also save time that\u2019s spent on doing manual tasks like shifting boxes and taking deliveries.\u00a0<\/span><\/p>\n

      You save time, your employees engage in tasks that actually require human intelligence, and your business makes unprecedented profits.<\/span><\/p>\n<\/div>

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      Real-Life Examples Of Supply Chain Automation Benefitting Businesses<\/span><\/p><\/h2><\/span>

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      1. Walmart’s Implementation Of RFID Technology <\/span><\/p><\/h3><\/span>

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      The use of RFID in Walmart stores and distribution centers started in 2003. By 2006, the top 100 Walmart suppliers were told to use RFID to label cases and pallets.\u00a0<\/span><\/p>\n

      With that, Walmart improved inventory accuracy from 65% to over 95%. Also, it could reduce out-of-stocks by over 30% and improve on-shelf availability for customers.<\/span><\/p>\n<\/div>