Hi there! Here are 5 ways hyperautomation will transform supply chains in 2024

ByPaul Christiano Last Update on

Supply chains are complex, with many moving parts that need to work together flawlessly to deliver products to customers. This leaves little room for error or inefficiency.

That‘s why more and more businesses are turning to hyperautomation – the process of rapidly automating as many supply chain processes as possible using AI and other smart technologies.

In this post, I‘ll walk you through 5 key benefits hyperautomation will bring to supply chains in 2024 and beyond. With real world examples and data, you‘ll see how hyperautomation enables:

  1. Real-time visibility through intelligent tracking
  2. Automated data capture and processing
  3. More accurate planning and forecasting
  4. Smarter warehouses and logistics
  5. Improved customer satisfaction

Let‘s get started!

Real-Time Visibility Through Intelligent Tracking

According to Gartner, only 21% of supply chain professionals say they have complete visibility across their operations. That means 79% lack crucial real-time insights into their supply chain.

Hyperautomation closes this gap by enabling intelligent, real-time tracking across the entire supply chain network.

How Does Hyperautomation Enable Real-Time Visibility?

Hyperautomated supply chains leverage technologies like:

  • IoT sensors – Small wireless sensors attached to products and assets relay location, condition, temperature and more.
  • RFID tags – Radio frequency ID tags allow products to be digitally tracked through facilities andtransit.
  • Digital twins – Virtual replicas of the supply chain integrate data from IoT, ERP systems and more to enable end-to-end visibility.
  • Unified systems – Connecting traditionally disjointed systems like WMS, TMS, LMS and ERP improves data sharing.

What Are the Benefits of Real-Time Visibility?

Real-time data gives supply chain leaders crucial visibility to:

  • Prevent disruptions – Identify and resolve issues before they spread
  • Optimize logistics – Monitor shipment locations and make dynamic adjustments
  • Improve forecasting – Leverage up-to-date data for more accurate demand predictions
  • Coordinate teams – Provide real-time alerts to supply chain, sales and support teams
  • Delight customers – Share shipment ETAs, tracking info, and delivery updates

According to McKinsey, real-time visibility in supply chains can:

  • Reduce lost sales by up to 65%
  • Improve forecast accuracy by up to 20%
  • Cut excess inventory costs by 50% or more

Clearly, hyperautomation and real-time tracking deliver immense value across the supply chain.

Automated Data Capture and Processing

Real-time visibility relies on automated capture and processing of supply chain data. Manually collecting and entering data is inefficient, costly, and prone to human error.

How Does Hyperautomation Automate Data Capture?

Hyperautomation utilizes technologies like:

  • RPA – Software bots that mimic human input for automating repetitive tasks.
  • OCR – Optical character recognition extracts text, data, and handwriting from documents.
  • Computer vision – AI systems that can automatically scan and process images and video feeds.
  • Voice recognition – Speech-to-text transcribes human voice data into structured information.
  • Barcode/RFID scanning – Automatically capture product data from barcodes and RFID tags.
  • IoT integration – Ingest and process streams of sensor data in real time.

What Data Can Be Automated?

With hyperautomation, supply chains can automatically capture:

  • Documents – POs, invoices, shipping docs, etc.
  • Images – Damage, inventory levels, packaging, etc.
  • Speech – Verbal reports from workers and drivers.
  • Transactions – ERP systems, websites, e-commerce, etc.
  • Sensor data – From IoT across logistics assets and facilities.

Benefits of Automated Data Capture

Automating data capture provides:

  • Real-time visibility – Data is ingested instantly without delays
  • Improved data quality – Reduces human errors from manual entry
  • Increased productivity – Removes repetitive, low value tasks
  • Lower costs – Automation is cheaper than manual processes
  • Better analytics – More accurate models with comprehensive, real-time data

According to IBM, automating document processing can improve data entry productivity by over 80% and cut document processing costs by 50% to 70%.

More Accurate Planning and Forecasting

With real-time data across the supply chain, organizations can leverage AI for improved forecasting and planning.

How Does AI Boost Forecasting and Planning?

AI systems can process disparate data including:

  • Historical orders and sales
  • Supplier, partner, and logistics provider data
  • Inventory and warehouse levels
  • Production schedules and capacity
  • Macroeconomic trends
  • Competitive intelligence
  • Weather forecasts
  • And more!

Sophisticated machine learning algorithms identify patterns, trends, and correlations across this data. This enables more accurate forecasts for:

  • Demand planning
  • Procurement and inventory optimization
  • Production planning and scheduling
  • Transportation management
  • Pricing and promotions
  • Hiring/staffing

What Are the Benefits of Better Forecasting?

More accurate forecasts enabled by AI deliver significant benefits:

  • Reduce lost sales – Optimize inventory to meet demand
  • Increase forecast accuracy – By 10 to 30% on average
  • Lower excess inventory – Align supply and demand
  • Improve service levels – Faster delivery with optimized stock
  • Streamline operations – Align schedules, transportation, and staffing

According to McKinsey, AI forecasting can reduce supply-demand mismatches by up to 65% in some industries.

Better forecasts drive streamlined operations, lower costs, and improved customer service.

Smarter Warehouses and Logistics Networks

Hyperautomation is enabling the rapid digitization of warehouses, transportation, and last mile delivery. Intelligent software and robots are optimizing workflows.

Warehouse Automation

In warehouses, hyperautomation enables:

  • Robotic pickers – Automate picking and packing of orders. 3x faster than humans!
  • Mobile robots – Self-driving robots shuttle inventory around facilities.
  • Computer vision – AI-powered cameras verify orders and identify defects.
  • Wearables – Scan, capture images/video, and voice-enable workers.
  • Digital performance management – Leverage sensor data to optimize real-time operations.

According to Mordor Intelligence, warehouse automation is growing at a CAGR of 11% globally.

Supply Chain Automation

Hyperautomation in logistics enables:

  • Asset tracking – GPS, RFID, and sensors provide real-time visibility.
  • Fleet optimization – Intelligent algorithms optimize delivery routes and capacity.
  • Predictive maintenance – Prevent breakdowns by using IoT data to predict repair needs.
  • Proof of delivery – Contactless proof of delivery via mobile devices.

As per MarketsandMarkets, the supply chain management market will grow from $15.8 billion to $37.4 billion by 2026.

Improved Customer Experiences

Ultimately, hyperautomation translates into happier customers through:

  • Faster deliveries – Automation accelerates processing and fulfillment.
  • Real-time tracking – Customers can monitor orders from purchase to doorstep.
  • Proactive updates – Get notifications for order confirmations, shipments, and exceptions.
  • Personalization – AI delivers tailored promotions, recommendations, and pricing.
  • Self-service – Chatbots and mobile apps enable self-service for common requests.
  • Instant issue resolution – Problems are rapidly detected and corrected through automation.

McKinsey found that omnichannel personalization enabled by supply chain automation can improve customer satisfaction scores by 15-30%.

As you can see, hyperautomation provides immense benefits across the supply chain. The combination of real-time visibility, intelligent optimization, and end-to-end automation will be crucial for supply chain leaders seeking to maximize efficiency and customer experiences in 2024 and beyond.

The adoption of hyperautomation is accelerating rapidly. I hope this overview provides valuable insights into how it can transform your supply chain! Let me know if you have any other questions.

I am Paul Christiano, a fervent explorer at the intersection of artificial intelligence, machine learning, and their broader implications for society. Renowned as a leading figure in AI safety research, my passion lies in ensuring that the exponential powers of AI are harnessed for the greater good. Throughout my career, I've grappled with the challenges of aligning machine learning systems with human ethics and values. My work is driven by a belief that as AI becomes an even more integral part of our world, it's imperative to build systems that are transparent, trustworthy, and beneficial. I'm honored to be a part of the global effort to guide AI towards a future that prioritizes safety and the betterment of humanity.

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