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16 Nov 2021

The logistics automation market was estimated worth USD 52.19 billion in 2020 and is predicted to be worth USD 104.23 billion in 2026, with a CAGR of 12.42% (2021 - 2026). Material batching, picking, ordering, packaging, warehouse security, and inspection are just a few of the duties that the Industrial Internet of Things (IIoT) and the introduction of a network of connected technologies are assisting companies with. The factor that contributes to increased operational efficiency by large margins, which pushes the market.

Due to the substantial issues provided by disruptions in supply chain management and a scarcity of personnel, the warehousing and e-commerce market has been facing a debilitating effect on business operations as a result of the COVID-19 scenario. Companies, on the other hand, expect to remodel their operations by leveraging automated technology. This event is predicted to propel the market forward in the future.

Despite the fact that logistics industry has evolved through time, automation technology is transforming the business. Robotics, augmented reality, and self-driving vehicles are all becoming new benchmark. These technologies make getting resources where they need to go easier than ever before.

Rise of Automation in Logistics Industry

For years, the most defining trend in the logistics industry and supply chain business has been digital transformation, which has presented practitioners with tremendous obstacles while also providing enormous opportunity to obtain competitive advantages at multiple levels.

Automation is bringing about the most significant revolution in the logistics industry. Robots and artificial intelligence are taking over tasks that formerly required human workforce. Companies can save money while satisfying consumer demand by automating key components of logistics.

One of the key reasons for the push for automation is the tremendous increase in online buying. Online sales have increased by 15% per year over the last decade. The total value of online retail sales in 2018 was $2.8 trillion. By the end of 2021, the figure is predicted to rise to $4.8 trillion.

Businesses have had to find solutions as a result of the rise of online shopping and a labour scarcity. Automation is the solution for a rising number of businesses.


The Role of Automation in Logistics

With logistics spending estimated to have reached $10.6 trillion last year, it's astonishing that some executives still use industrial processes to evaluate productivity rather than the supply chain as a whole. Organizations miss out on massive cost-cutting opportunities when they do so.

Automation is something that all organisations should embrace. Currently, the average company that manufactures and distributes products spends a small part of its revenue on logistics, which includes everything from packaging to delivery. This figure is increasing.

As prices grow and the business world becomes more digital, it's critical that decision-makers adopt the most efficient and cost-effective software for their company.

The introduction of driverless vehicles, blackout warehouses (fully automated warehouses), and improved TMSs has transformed logistics into a dynamic and forward-thinking sector. Customer-driven data collecting has never had such an impact on business decisions, allowing organisations to predict consumer behaviour and respond to those requests faster than ever before.

Not only does the logistics business have tickets to the major game of technological growth, but it also has front-row seats. Technology that was formerly only available to Fortune 500 companies is now available to even the start-ups. Furthermore, there is more merchandise being transported out than ever before.

Process automation allows organisations to concentrate on what their customers want rather than the complexity that consumes so much of the time and energy of the business owner. When you automate operations in your organisation, you are no longer distracted by minor details, allowing you to concentrate on what really important.

Business owners must analyse the specifics of what their adopted technologies will achieve in the company and set long-term goals for how to apply software and process automation throughout the organisation.

Transport Management System (TMS)

Critical automation technology is beginning to upend global transportation infrastructures, affecting every stage of the products movement from origin to destination.

The COVID-19 pandemic has exposed the global supply chain's weaknesses and fragilities while also hastening the implementation of automated logistics technologies that enable more secure and efficient cargo transit and contactless delivery.

The complexity of today's supply chain is to blame for the challenges with present logistics solutions. As the need for an efficient system arose, the industry developed new platforms to satisfy shippers, customers, supply chain partners, etc. and other logistics service providers (LSPs).

Unfortunately, many of these technologies may not interact effectively with one another and lack automation, resulting in a longer time to achieve ROI and difficulties managing the complicated supply chain's ever-growing demands. The deployment of a sophisticated transportation management platform can prove to be a game changer for the industry.

Functions of TMS Automation for Operations

Deploying a transportation management system (TMS) to automate the business operations and core functions within the organization can give a competitive advantage. Automation can help organizations to increase efficiency, reduce cost and improve performance.

The benefits of transportation management system automation include reporting, optimization, and other supply chain activities. Leaders must explore how a system can automate some tasks to increase efficiencies and lower obstacles to maximum ROI.

Key Deployment Opportunities for Automation

Automation's application is only limited by one's imagination. Consider these deployment options while considering "how might an automated functionality within a transportation management system improve everyday activities," for example -

  • With real-time visibility technology, you can automate the process of performing driver check calls and have on-demand access to a shipment's status and location.
  • To decrease confusion and implement contactless freight management, real-time document exchange is used.
  • Improved route optimization that takes into account changing road conditions as well as a strategic approach to multimodal shipping.
  • Increased usage of automated notifications to improve exception management teamwork.
  • Flexible rule sets automate the previously laborious, error-prone keying of shipment information into the TMS, resulting in less stress when tendering shipments.
  • Access to freight market data to make better decisions about loads to save freight moving costs per hundred-weight or per mile.
  • For freight invoice auditing and settlement processes, robotics process automation is being used.

Explore the Values of Automation within Your System

Automation is the next big thing in digital era. An enterprise transportation management system's automation functions enable personnel to perform more with less, focus on problems as they emerge, and provide a great customer experience. Of course, this requires that businesses implement automation correctly, sharing data responsibly, and refraining from making rash, uneducated decisions.

Download the case study to learn how we helped our client to increase revenue. Contact us to learn more about how to implement automation within your organization.