This article provides an intro to supply chain process automation, answering the questions:
Last, we wrap up with how you can get started. Let's dive in!
In recent years, new technology has made process automation far more accessible and effective than ever before.
Perhaps the easiest way to understand the possibilities, is simply to see automation in action, so here is a brief demo with a simple use case: responding to a request for the status of order (or a shipment etc.).
An intro to supply chain process automation demo video
An intro to supply chain process automation demo video
In the demo, the status is automatically retrieved from a Google spreadsheet and then USPS.com, but the important point it illustrates is that we can automatically understand the email’s intent, assess the identity of the sender, and retrieve the relevant order status from any electronic system, even if that means opening a browser and clicking through several pages. While not shown in this demo, we can also automate contacting others for the status by email, text, or even a phone call if necessary.
So, which supply processes can be automated? The technology is honestly at point where the question really becomes which process should be automated first? I would emphasize data management, information flows, and near-term supply chain planning work.
However, to make things more concrete, here are a few examples loosely based on the APICs SCOR Standard¹:
It’s worth noting that each of these areas can contain a whole world of automation possibilities. For example, there are many new software options aimed specifically at logistics service providers. If you are interested in this space, I recommend checking out the Vooma YouTube channel, which does a good job of illustrating automation for specific brokerage processes.
Finally, one note on physical supply chain processes: everyone has seen the Amazon robots, but that is a larger, more complex project. However, there is a sweet spot with cameras and computer vision, where physical processes like counting inventory, monitoring production, etc. can be automated with a relatively lower barrier to entry.
In a world in which the barriers to automation are coming down considerably, the critical questions become: why automate? what should be automated? what should our priorities be?
These are questions at the intersection of technology and business, and this is where our team applies proven consulting frameworks, with an emphasis on Lean Manufacturing and Six Sigma.
Six Sigma is a methodology for process improvement, and its principles are highly relevant to process automation. Six Sigma approaches the above questions in its Define phase, with tools that include the Project Selection Matrix or Project Viability Model.²