Supply Chains Will Become Autonomous Faster Than You Expect - The Shift to Automation

1. Supply Chains Will Become Autonomous Faster Than You Expect - The Shift to Automation The role of autonomous technology has been growing in importance as companies have begun to build networked supply chains that can anticipate demand, react quickly to changing conditions and operate more efficiently. In the past year, we’ve seen a dramatic rise in the adoption of autonomy in supply chains. Autonomous robots are now commonplace in the manufacturing sector, especially for discrete process and final assembly operations. However, this is just the beginning of the adoption curve. In our latest research report “The future of autonomous technology: How enterprises will accelerate the adoption of connected and autonomous supply chains” we zoom in on how enterprises will continue accelerating the adoption of connected and autonomous supply chains over the next three years. Technology Transforming Supply Chain Finance for Small and Medium Enterprises The supply chain financing industry is expanding steadily. However, there has been a shift toward automation and digitalization of supply chain finance solutions as well as transactional processes in recent years. Rapidly developing technological platforms are now playing a critical role in boosting transparency by utilizing the diverse spectrum of trade and transactional data. Whether inbuilt or multi-platforms, Technology is central to any successful supply chain finance program. Three important factors need to be considered while selecting the technology These include automation, simplicity, and scalability. The supply chain finance platforms are quite diverse, making it a monumental task while select a well-suited supply chain finance platform that requires to clearly understand of the goals of the current capabilities and gaps as well as the program. In order to address different challenges, SCF solutions can take various forms. Why Supply Chains Need to Go Autonomous The biggest driver for the increased adoption of supply chain automation will be the need to create higher-performing supply chains that are more agile and predictive to meet the expectations of B2B and B2C customers. The need for greater transparency and traceability has also been growing as customers become more aware of the importance of sustainability and ethical labor practices. Automation allows supply chains to operate more efficiently and be more transparent. This will be especially important for food and pharmaceutical companies, which are facing pressure to improve transparency and traceability. The supply chain has become a critical component of the digital transformation journey. Greater connectivity and information sharing across the supply chain have enabled visibility into asset and inventory levels and allowed companies to make real-time or predictive decisions — such as when to order and even design new services. Automation is the next logical step toward making supply chains even more efficient and agile. The Rise of Collaborative Robotics The biggest barrier to the widespread adoption of autonomous technology has been the high cost of the associated hardware, software, and maintenance needed to bring these systems to production. Since the rise of collaborative robots, the price of automation has seen a dramatic

2. fall. In fact, for many operations, collaborative robots are now the less expensive option. Collaborative robots use the same cabling, and controllers as traditional industrial robots, but the end effector is designed to work side-by-side with humans and not in a separate enclosed work cell. There are many different types of collaborative robots, each designed to meet a specific need. Some are robust enough to handle the same materials used in traditional production while others are optimized for light materials handling or discrete process operations. Collaborative robots are typically less expensive than conventional industrial robots and do not require a cage or safe work environment. Autonomous Technology in Supply Chains Autonomous technology will be used to manage more applications in the supply chain over the next few years. Autonomous technology will be used in conjunction with predictive analytics and machine learning to trigger autonomous actions. For example, an autonomous system could receive sensor data on a truck that is running low on fuel and then send a message to the truck driver to take the nearest fuelling opportunity. Or it could receive weather data and then notify the truck driver to be ready for poor road conditions. One of the most interesting applications of autonomous technology will be in the management of inventory. In the past, enterprise resource planning (ERP) software was only able to track inventory levels at the end of the supply chain. Now, with sensors and software being connected throughout the supply chain, enterprises will be able to see inventory levels throughout the entire supply chain. Automated Storage and Retailing Autonomous technology will play an important role in automated storage and retail solutions. Currently, these systems are primarily used in the food and beverage industry where there is a need to store perishable products with a very high level of accuracy and traceability. The most common type of automated storage and retail systems use a conveyor system that moves products from storage to the packaging or picking areas. Autonomous technology will be used to manage and control this system, including the sensors that are used to track inventory. Automated storage and retail systems are also common in the pharmaceutical industry and are used for finished goods storage, distribution, and repackaging. Autonomous Warehousing Warehouses are designed for efficiency and often require strict procedures and tasks to be performed in a certain sequence. This makes the application of autonomous technology challenging and is why we’ve seen it take so long to be adopted. However, with the rise of machine learning in warehouse management and the availability of better computing power, it has become possible to design autonomous systems that can manage these strict environments. Autonomous systems will be used in conjunction with collaborative robotics in warehouses to optimize picking and packing operations and reduce the need for human interventions. A good example is the use of autonomous vehicle guidance systems. Autonomous Logistics Autonomous technologies will also be used in the field service industry to manage vehicle operations, such as driving and dispatching. Automated systems will be used to manage the maintenance of equipment, track asset utilization, route vehicles, and provide mapping data for

3. technicians. Automated systems will also be used to manage the dispatch and routing of field service vehicles. This will allow companies to optimize their fleet operations, reduce emissions and increase utilization. Key Takeaways The role of automation in supply chains has been growing over the past few years, but we’ve only seen the tip of the iceberg. Autonomous technology will be used in the supply chain to manage more applications and trigger autonomous actions. Collaborative robotics will be used in conjunction with machine learning to optimize picking and packing operations and reduce the need for human interventions. Machine learning will become a critical component of autonomous systems in supply chains. Enterprises can use algorithms to design autonomous systems to respond to various triggering events and optimize their performance. Organizations that are unable to build autonomous systems that can understand and respond to a wide range of triggering events will struggle to integrate autonomous technology into their supply chains. If your company has not yet started looking at automation, now is the time to start. Supply chains will continue to go autonomous over the next few years, so it’s important to understand what this means for your business and start preparing for the change now.