Navigating Supply Chain Challenges with RPA: Insights for 2024
The global supply chain has experienced great difficulties in the recent years. The disruptions mainly caused by geopolitical conflict, natural disasters, and pandemics have exposed the vulnerabilities in traditional supply chain models. Companies are now searching for strategies to create better and more flexible supply chain management.
Robotic Process Automation (RPA) has been proven to be a useful tool in solving these problems. RPA can operate the time-consuming and routine processes in the supply chain, thus, allowing employees to work on high-value tasks.
What is Robotic Process Automation (RPA) in Supply Chain Management?
- Order processing
- Inventory management
- Invoice processing
- Shipment tracking
- Data entry
- Compliance tasks
How Does Automation Help the Supply Chain?
The global supply chain has experienced great difficulties in the recent years. The disruptions mainly caused by geopolitical conflict, natural disasters, and pandemics have exposed the vulnerabilities in traditional supply chain models. Companies are now searching for strategies to create better and more flexible supply chain management.
Robotic Process Automation (RPA) has been proven to be a useful tool in solving these problems. RPA can operate the time-consuming and routine processes in the supply chain, thus, allowing employees to work on high-value tasks.
Improved efficiency
RPA can automate repetitive tasks, allowing human workers to focus on more strategic activities. This can lead to significant improvements in efficiency and productivity. A leading consulting firm McKinsey & Company suggests that “currently demonstrated technologies could automate 45 per cent of the activities that people are paid to perform”.
Increased accuracy
RPA bots are programmed to follow specific instructions, which can help to reduce errors in the supply chain. Human error is a common cause of supply chain disruptions, such as incorrect orders, shipping delays, and inventory discrepancies. RPA can help eliminate these errors and improve overall supply chain performance. An article “RPA and CA in Medtech” by Deloitte mentioned the potential benefits of RPA, saying that Robotic Process Automation helps ensure data consistency and accuracy in reporting by eliminating manual errors by 80% to 99%.
Reduced costs
Automating tasks can help to reduce labour costs and improve operational efficiency. Statistics found that many industries are combining Robotic Process Automation (RPA), Artificial Intelligence (AI), and Business Process Management (BPM), reducing manual invoice processing by 90%. As a result, the industries achieved a 50% decrease in staffing costs associated with this function.
Source – Nivedious.com
Improved visibility
RPA can provide real-time data on supply chain operations, which can help businesses identify and address problems more quickly. For example, RPA can be used to track inventory levels, monitor shipping times, and identify potential bottlenecks. This information can be used to make informed decisions about how to improve supply chain performance.
Enhanced Flexibility
RPA can help businesses to respond more quickly to changes in demand or disruptions in the supply chain. For example, if a supplier is experiencing production delays, RPA can be used to quickly find alternative suppliers. This can help to minimise the impact of disruptions on the supply chain.
What are the benefits of automated SCM?
There are many benefits to automating supply chain management (SCM), including:
- Increased efficiency and productivity
- Reduced costs
- Improved accuracy and quality
- Enhanced visibility and traceability
- Increased agility and responsiveness
- Improved customer satisfaction
How to Automate the Process of SCM?
There are some steps involved in automating SCM processes. These steps include:
- Identifying tasks to automate: The first step is to identify the tasks in your SCM process that are repetitive, rule-based, and time-consuming. These are the tasks that are most likely to benefit from automation.
- Developing RPA bots: Once you have identified the tasks to automate, you need to develop RPA bots to perform those tasks. RPA bots can be developed in-house or purchased from a vendor.
- Implementing RPA bots: Once the RPA bots have been developed, they need to be implemented in your SCM process. This may involve integrating the RPA bots with your existing systems.
By following these steps, businesses can automate their SCM and gain numerous benefits from the automation.
Conclusion
In conclusion, Robotico Process Automation is a strong solution to support a business in overcoming the threats of the global supply chain and in constructing more resilient operations. RPA can assist businesses in cutting costs, enhancing clients’ satisfaction, and gaining a competitive advantage by eliminating repetitive tasks, enhancing productivity, and minimizing mistakes.
If you are looking for ways to improve your supply chain operations, RPA is a solution worth considering. Robotico Digital is waiting for your call, Contact us today to schedule a call with a consultant to discuss how RPA can help your business.
