Logistics and supply chain management helps in managing relationship with suppliers and customers apart from managing the physical transportation of products and items. Nevertheless, logistic involves ensuring customer satisfaction through supply chain coordination and interfacing. Logistics involves a study of supply chain procedure that plans, implements, and controls the effective forward and backward flow of the storage of goods along with services and associated data communications right from the starting point of origin to the end point of consumption so as to meet the customer requirement. Here we will read about the automation technology utilized in supply chain management and logistics, including innovative technologies such as automation using automatic material and item identification.
The role of automation in the logistics and supply chain industry – an in-depth study!
The process of moving supplies, data, and money from a supplier to a manufacturer, wholesaler, retailer, and then to the customer is known as the supply chain management. Nowadays, the technological advancement like automation is creating several latest opportunities for the industries. It also helps in building a competitive edge in different areas of management including both logistics and supply chain management. However, the success level depends on the correct implementation of the appropriate technology for the betterment of the organization’s activities. Some of the automatic technologies used in the logistics and supply chain management are:
- Automatic ID (Identification Technology): Automatic Identification (Auto ID) is a term that is used for entering the data or information directly into the computer system, programmable logic controllers or in any microprocessor-controlled device without involving manually. Under this automatic ID, the technologies used are Radio Frequency Identification (RFID), Bar Coding, and Voice Recognition. Auto ID can be used for tracking the packages, cartons, containers or even a truck that is carrying the goods. This helps in tracking each and every activity of the transportation process. The major benefits of automatic ID include:
- Accuracy
- Cost cutting
- Speed and ease of data storage
- Streamline processing of information to systems
- Radio Frequency Identification (RFID): RFID is a type of automatic identification and data capturing (AIDC) technology that allows non-contact reading. This technology is best for manufacturing and similar other environment where bar codes are not successful. This is an advanced system that is used in place of barcodes for maintaining the inventory data via radio waves. This is a wireless system that exchanges information between a tagged object and the reader.
RFID contains one or more tags called Radio Frequency Tags (RFTs) including a semiconductor chip and antenna. The reader gets connected to the central computer with the help of this technique. The RFTs stores data in the microcircuit and it is connected to an antenna that emits the radio signals. This tag usually holds crucial data like inventory items, exact quantity and value, the time at which the item travelled from one placed to other, and more.
With the help of the antenna of this device, the reader receives the tag signal and then decoding of the data takes place. It will further transfer the data to the host computer system. RFTs are helpful in avoiding paperwork and let avoid in prompt clearance at road tax systems and custom posts. When it comes to warehouse, the barcodes are applied to the individual inventory materials while RFTs are applied to pallets, containers, and more.
Benefits of RFID:
- A better capacity for manufacturers to control inventory levels
- Increased the complexity of the defense operation’s distribution system
- Increased the Indian Postal Services’ sophisticated tracking and distribution processes
- Expanded manufacturing industry tracking, logistics, and planning activities.
Impact of Automation on logistics and supply chain management
- Procurement: E-procurement is done with the help of automation process.
- Web-based collaboration: This includes sharing and collaborating with supply chain partners.
- Scheduling: Automation helps in building strong linking between supply chain partners and customers. This helps in proper scheduling for serving the customers at the right time.
- Inventory Management: Automation and IT such as collaborative and vendor management inventory helps in managing inventory properly.
- Logistics & Warehouse Management: Automation and other technologies like GPS help in keeping a strict check on the movement of goods. This further ensures efficient logistic and warehouse management.
- Customer Service: Automation is customers service has also resolved the issue of saving time. Reaching customer faster and taking continual feedback has become easier.
Benefits of Logistics Automation
- Automation has ease down the process of handling the goods in process. The incoming goods are marked with barcodes and the automated system notified of the expected stock. When reached the destination, the goods are scanned and identified. After that, they are sent to the storage location if required using conveyors and cranes.
- Goods retrieval process if simplified. In diverse companies, if any order is raised and that has to be sent from the warehouse to other location then this system automatically locate the goods in a quick session and retrieve them.
- With the help of the automation system, the picked goods can be easily assigned into dispatch units and then into the outbound loads.
Benefits of Supply Chain Management Automation
- Due to automation, supply chain management enjoys a reduction in the labor cost. Also, a lot of amount is saved over inventory, warehousing, and overhead costs.
- Automation helps in increasing the productivity level by optimizing the available resources and enabling work all the time. So, there is an increase in the production cost by around 20%.
- This helps in increasing the productivity rate as it allows in the increase of the volume of products.
- It helps in increasing the accuracy rate of the as it offers real-time information on inventory levels.
So, logistics industry is gaining a lot of benefits from the automation.
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