We have never been more in need of new ways to increase supply chain management efficiency than we are today. Traditionally, shipping and logistics companies have had to perform back-office tasks manually, such as updating customer information on portals with the current status and ETA, scheduling a delivery, and tracking an order.RPA, or Robotic Process Automation, is one technology that may help improve logistics and supply chain optimization by automating time-consuming, repetitive tasks, such as data entry and creating faster workflows. The shipping and logistics industry is heavily pressured by customers and shipping firms that demand higher prices for their service.
The Logistics industry can utilize Robotic Process Automation (RPA) bots to automate such mundane tasks and reduce costs by increasing operational efficiency, productivity, and efficiency.
“It’s a journey into automation maturity that you need to go through yourself before you can reach the ultimate goal of being a digital company.”
Head of Intelligent Automation, Posti Group Oyj
RPA USE CASES IN LOGISTICS
The ‘Automation Revolution’ is currently underway. Logistics companies have started incorporating RPA in logistics into their daily activities to improve their operational efficiencies and supply chain. A report by the World Economic Forum found that the digital transformation of logistics will result in $1.5 trillion worth of value for industry players and $2.4 trillion worth of societal benefits over the next decade.
Some of the use cases for RPA in Logistics are :
1. Shipment Tracking : Using robotic process automation (RPA), logistics can automate tracking vehicles and shipments. Experts estimate that efficient automatic solutions can replace 15-25 checker checkpoints and package display locations. Having solutions that work this way is the key to a consistent workflow that can lead to more or fewer savings than 30% in the deployment phase. This application enables the logistics company and customers to know the status of their shipments through tracking synchronization and checking the details of their shipments. Using RPA in logistics, companies can automate pick-up, reload, and delivery status between any Transportation Management System (TMS) and external customers.
2.Order to Cash : Order to cash is a significant concern for accepting and processing customer sales orders. The challenges and difficulties required to recover money are errors, low profitability, cost overruns, time lag, order processing, etc.
Robotic Process Automation can automate many aspects of the process. It can assist in order fulfilment, eliminating and reducing the need for personal intervention. Enabled bots help customers retrieve required information and answer their queries in a real-time manner and helps to deal with many issues such as data incompatibility, late payment, and improper handling.
3.Procure to pay: Procurement is an essential part of Logistics. The procurement phase aims to obtain and comply with the terms and obtain building materials, goods, or services (usually from external sources). Proper use of automation tools can reduce manual labor and save 20-25% on labor costs.
It is essential to understand that to reap the benefits of RPA, you need to apply it throughout the P2P cycle. Functions such as purchase and payment requirements can be fully automated with the help of RPA in logistics.
4.Initiating purchase orders: Supply Chain Management departments make use of RPA to keep a tight check on inventory levels. RPA can automatically initiate purchase orders when supply levels dip below a certain threshold. Companies can ensure reduced risk of lost sales and disgruntled customers by maintaining optimal inventory levels. RPA helps companies manage their supply during peak and trough demand.
5.Responsibility for capturing and closing: Working with carriers for foreign companies is part of logistics. Less-than-load (LTL) shipment means delivering tiny goods that are usually very small than an entire truck. There is no standard definition of LTL, but it is generally considered LTL when it weighs between 150 and 20K lbs.
To manage LTL flights efficiently and effectively, you need to track multiple systems. This includes additional costs and headaches. It can be successfully managed using software robots. Automation tools can perform the lion’s share of the pipeline. They can be used, for example, to scan and read company-related information (e.g., PRO number, contact details, invoice number, etc.). This helps speed up the whole process and close loads.
According to MRFR, the Robotic Process Automation Market is expected to grow to approximately USD 2,700 Million by 2023, at 29% of the CAGR between 2017 and 2023. Logistics is one of the industries included in the classification list.
BENEFITS OF RPA IN LOGISTICS
- Increased efficiency
- Quick, seamless automatic process
- Easy automation of existing processes and integration within the existing environment
- 24/7 Performance
- High accuracy
- Free up the task force to focus on other business activities
- Improved customer experience
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