According to a Gartner report, 70% of organizations have active automation initiatives, however these are mostly siloed and uncoordinated with the business objectives. This when viewed from the supply chain framework perspective, it tends to disrupt the operations rather than building up a streamlined structure to tide over unforeseen events.
Hyperautomation is a business-driven and people-centric approach that identifies, vets and automates business as well as IT processes. It leverages multiple technologies, such as artificial intelligence (AI), machine learning (MI), robotic process automation (RPA) to automate even the most complex of business processes.
What is Hyperautomation in Supply Chain?
Hyperautomation in supply chain is considered as one of the 8 leading development trends that easily connects with varied applications, analyzes them, works on unstructured data to make decisions as well as explore new opportunities in the improvement cycle.
Hyperautomation in supply chain management enables process efficiency, increases visibility across the supply chain and mitigates close margin issues with the help of intelligent tools to boost business outcomes.
From optimizing routes for delivery vehicles, to reducing time taken by transports, tracking and managing inventory, managing logistics, automating billing, streamlining load tendering, optimizing carrier operations, contact management and cutting down costs, hyperautomation in supply chain not just takes charge of repetitive tasks but also offer real-time insights, improving efficiency and performing predictive analysis for risk management.
With hyperautomation already boosting business outcomes with its myriad of benefits and evolving technology, the year 2024 will prove the year of transformation for the supply chain landscape. We have curated 5 ways hyperautomation is all set to improve the supply chain in 2024.
5 Ways Hyperautomation Improves Supply Chains in 2024
1. Enhanced Visibility and Transparency
In 2024, Hyperautomation drives in the evolving direction of seamlessly integrating AI-driven analytics and IoT devices paving for a more visible supply chain. A highly transparent supply chain allows specialists to:
- Gain better control over inventory
- Have a predictive risk management strategy in place
- Higher customer satisfaction
Over 62% of organizations have limited visibility in their supply chain which restricts their strategic control on processes, leading to significant losses in terms of finances, logistics and reputation. However, hyperautomation in supply chain improves transparency by leveraging:
- IoT devices for real-time insights: IoT based supply chain devices provide real-time information in storage conditions and product movements. They provide valuable data to allow specialists to make informed decisions and ensure product quality remains unhindered.
- Digital Twin for comprehensive monitoring: A digital twin is the virtual replica of the supply chain to collect real-time data from IoT devices and databases. This enables specialists to identify bottlenecks, optimize inventory and proactively monitor and mitigate potential risks.
- Integrated systems for seamless collaboration: They provide an environment where partners and suppliers can share real-time data and implement the automated actions. This interconnectedness ensures that the entire supply chain is synchronized to reduce delays, enable swift response to changes and improve overall efficiency.
2. Predictive Analytics for Demand Forecasting
By 2024, it is predicted that most of the supply chain organizations will allocate significant investments towards technology and applications that can boost advanced analytical capabilities to become more predictive and proactively identify, assess, analyze, and mitigate risks. To harness the true benefits of such analytics, supply chain is on its way to tapping into the massive real-time information sourced from the integrated devices and funneling them into tech-algorithms.
This integrated approach helps organizations more better informed decisions across various domains of:
- Optimized inventory management to fine-tune inventory levels for specific locations and times, ensuring resources are allocated efficiently.
- Data-driven insights to aid in budget planning, enhancing cost management.
- Predictive analytics to preemptively identify maintenance needs, minimizing operational disruptions.
- Accurate predictions to support strategic market expansion decisions, reducing market-related risks.
3. Autonomous Supply Chain Management
By the year 2024, AI-driven algorithms will have the capability to make instantaneous, real-time adjustments to key supply chain aspects, including inventory, routing, and production schedules, all without the need for human intervention.
This transformative advancement promises a multitude of benefits:
- AI’s autonomous decision-making optimizes processes, leading to more efficient operations. This ensures that resources are allocated precisely when and where they are needed, reducing waste and enhancing productivity.
- Automation minimizes the potential for human errors, which can be costly and disruptive within the supply chain. The accuracy of AI-driven decisions improves overall reliability and consistency.
- By making data-informed decisions on the fly, AI-driven algorithms can help reduce operational costs. This includes more efficient use of resources, streamlined processes, and potential savings on labor and other expenses.
4. Intelligent Quality Control
Hyperautomation, with its integration of AI-driven quality control, revolutionizes the inspection process for both incoming materials and finished products. Through the utilization of AI-enabled cameras and sensors, the system exhibits unparalleled precision in identifying defects and deviations. This groundbreaking approach leads to several tangible benefits, including the production of higher-quality products, a reduction in waste, and the reinforcement of customer trust. In essence, it’s a transformative leap in quality assurance and operational efficiency within the supply chain.
5. Sustainable Practices and Environmental Impact
A sustainable supply chain aims to transport products swiftly and cost-effectively while minimizing adverse environmental and social effects. Sustainability goes beyond environmental objectives for businesses, as recent data shows that approximately 35% of consumers have discontinued their purchases from certain brands due to sustainability and ethical concerns in the past year.
Hyperautomation technologies, which provide enhanced visibility and more accurate forecasting, empower supply chain leaders to enhance the sustainability of their operations. This translates into several key advantages:
- Hyperautomation enables supply chains to maintain optimal inventory levels, mitigating excess and shortage issues. This, in turn, reduces waste and ensures resources are utilized efficiently.
- Optimization of logistics routes is a crucial facet of sustainable supply chains. Hyperautomation allows for intelligent route planning, which not only cuts down on gas consumption but also minimizes carbon emissions, contributing to a greener footprint.
- Smart sensors play a pivotal role in tracking machine and human behavior within various supply chain components like warehouses and trucks. This real-time data collection and analysis help identify areas for improvement, enhancing sustainability efforts.
Incorporating hyperautomation in supply chain aligns businesses with growing consumer demand for sustainable and ethical practices.
The evolution of supply chains has been a remarkable journey, transforming from the conventional procure-produce-provide model to an era of hyperautomation. Hyperautomation in supply chain is a paradigm shift toward greater efficiency and agility. With its transformative capabilities, supply chains are more efficient, responsive, and environmentally conscious than ever before. Organizations that embrace hyperautomation are better positioned to meet the challenges of an evolving global market.
2024 is set to be the year of supply chains leveraging hyperautomation to pave a landscape of efficiency, flexibility, and responsiveness, ensuring that organizations can meet the demands of an ever-changing market landscape.