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RPA in Supply Chain and Logistic Management | Use Case and Benefits

Jagreet Kaur | 04 January 2023

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Introduction to RPA in Supply Chain

It stands for Robotic Process Automation, which allows you to automate the Processes. It a technology that works within the software and eases human efforts and hence called Software Automation. It includes the Flow of Goods and Services between the organization and the suppliers. These terms coalesce to form RPA in Supply Chain that has enabled an efficient SCM in the industries. It on the other hand is the new lever to drive process efficiency and effectiveness. It reduces our workload by automating repetitive & straightforward issues. 

Robotic Process Automation technology gives the best result in automation testing with their tools, given developer tests his code daily. Click to explore about, Debugging the Myths and Facts

It involves steps that involved getting a product or service to the customer. Some entities are involved in the industry include are vendors, retailers, producers, warehouses, Transportation companies, and Distribution centers. It allows businesses to scale up swiftly to meet the business requirements as demand increases. Robotic process automation (RPA) is the use of software robots to automate routine, repetitive tasks in a variety of industries, including supply chain management. In the industry, it can be used to automate a range of activities, such as data entry, order processing, and inventory management.


Automated Processes via RPA in Supply Chain

How has Robotic Process Automation in Supply Chain aided in automating the processes in various Industries? Get to know below:

Order Processing and Payments

Order processing is the request from the customer, and then the supplier will decide that it can fulfill the request or not. It automatically extracts sales order data from all order types (fax, email, mail, or EDI) and eliminates data entry errors. It automates major order processing steps and manages complex business rules to simplify order entry and fulfillment.

Onboarding of Partners

Onboarding is the process for onboard new goods and services. When it comes to Onboarding partners through it, we create smart bots that synchronize and help to automate the process of Onboarding.

Shipment Scheduling and Tracking

Shipment Scheduling and Tracking is the process for shipment of goods then schedule and managing it. Automate the Shipment by data entry automatically, Scheduling it by proper conditions on data, and Tracking it by unique ID and the ID generate when we schedule it.
Robotic process automation is a "speed to value" option that supply chain leaders in customer fulfillment can seize today. Source: Gartner, Inc

Invoicing

Invoicing is the supplier's document to the buyer that indicates the supplier's product or services' quantities and cost. The process of Invoicing Data entry, data extraction, and calculation is done through it for automation.

Procurement and Inventory

Procurement and Inventory is the process of storing the goods and make them ready for sale, including all the finished goods that are available to be sold. Data entry automatically by Unique id in the Database, which is Automated by the Robotic Process Automation.

Supply and Demand Planning

It is a process of forecasting the demand for the product or service to be produced and delivered more efficiently and customer satisfaction. Automate the process of updating data of required goods and planning to manage new goods entries through its software.

Customer Services

Good customer services typically mean providing timely, attentive, upbeat service to a customer. When customers demand the goods or change in goods, it is directly going to the customer’s request portal of the organization. If the demand is new, it will add to the database.

Deploying it in Human Resource Management enable them to focus on more quality tasks. Click to explore about our, Robotic Process Automation in Human Resources Management

How Robotic Process Automation is aligned with Supply Chain?

To start with:

  • It is a multi-problem solution to continuously monitor inventory, shipment management, and notify inventory stock.
  • It provides a more efficient way to solve Supply and Demand planning through automation by gathering and merging information from the annual analysis.
  • It can analyze trends by examining sets of data and customer purchase activity.
  • It can run automated purchase orders with predefined criteria such as pricing, quantity, purchase volumes, and consumer purchase behavior.
  • It brings efficiency by running tasks in an automated and organized manner. Only the tasks with higher priority or exceptions are handed over to the procurement manager for a second review.
  • It works 24 x 7 and reduces human intervention to allow managers to take care of essential tasks requiring human decisions.
  • It and industry management can make invoicing and processing of documents from vendors and suppliers easier with accuracy.
  • It speeds up tasks such as extracting information from invoices, validating, and verifying so you can free up labor while ensuring that the invoices are handled correctly.
  • The fastest way to cut logistics costs is to optimize the pricing of sourced materials. Price look-ups and comparisons are time-consuming when done manually on 100's products. That's why price lookup is the prime candidate for automation.
  • It can routinely search for prices and compare the available materials to provide optimum output.
  • It makes handling data entry and integrations simple and less prone to error. Maintaining equipment is made easy with it.
The RPA Center of Excellence is a way to embed automation and redistribute resources across future deployments. Click to explore about, Guide to build RPA Center of Excellence

Steps to implement it in Supply Chain Management

Let's look at the steps for adopting Robotic Process Automation in a organization are:

  • Specific Process Identification

Identify the processes that can benefit from it. This involves analyzing the current processes and identifying the ones that are repetitive, time-consuming, and prone to errors.

  • Feasibility and General Process Type

Assess the feasibility of automating the selected processes. This involves evaluating the complexity and technical requirements of the processes, as well as the availability of resources and support from stakeholders.

  • Planning

Develop a plan for implementing it. This involves defining the scope and objectives of the project, as well as the timeline, budget, and resources required.

  • Selecting Tools & Technology

Choose the right tools and technology. Many tools are available in the market, and choosing the best suited to the organization's needs and requirements is essential.

  • Training As per the adaptability to change

Train the staff on the use of tools and technology. It is essential to provide training to the staff on the use of tools and technology, as well as on the processes that will be automated.

  • Deployment and Testing

Implement and test the Robotic Process Automation solution. This involves setting up the software and configuring it to automate the selected processes. It is also essential to test the solution to ensure it is working as expected.

  • Observability and Monitoring

Monitor and maintain its solution. Once its solution is implemented, it is essential to monitor its performance and make necessary adjustments to ensure it works efficiently. It is also essential to regularly maintain the solution up-to-date and ensure its continued effectiveness.

A virtual employee who can perform repetitive activity faster and more cost-effectively than humans. Click to explore about, The Best RPA Use-Cases in Industries

Future of Robotic Process Automation in Supply Chain Industry

It carries a good future in the companies. As it benefits the industries in a good manner as it reduces the process's time, it calculates the process correctly. If you do it manually, there will be a chance for errors, and when it comes to the big stock data, no organization will allow taking the errors.

73% of the organizations will use it for the process, which contains repetitive manual tasks. We can say that we have a good future with this technology. Companies that acquire its management enjoy greater accuracy, reduced costs, increased ROI, better customer value, and a host of other advantages.


How does Robotic Process Automation help the industry?

Given below are certain benefits of it in Supply Chain in the SCM Industries:

  1. Reduce the manual task increase the efficiency of work as it can automatically fix the data change in the database.
  2. Increasing bots decrease in labor or workers. It will be beneficial to the organization because it shouldn’t have to onboard so many employees for every single work.
  3. Efficiency in the data store is accurate. There can be possibilities of error in the database if a person does it, but a well-programmed robot doesn’t give any error.

Challenges towards RPA in Supply Chain

Management businesses use robotic process automation to automate mundane, small-value tasks, which simplified operations in the industry and reduces human error. But still, it faces challenges on its adoption in SCM Industries:
  1. Management is the multi-step nature of processes. Problems arise when organizations leave automation after using it once. Their probabilities of error must be increased in the databases, or we need to calculate the goods transferring from one place to another.
  2. All the processes must become slow as every task will be done manually.
  3. Companies need automation for their ease of work. It affects the organization in cost and efficiency.
  4. We need automatic machines in the factories these days. Similarly, Software processes also need automation. But the match doesn't ever happen.

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Use Cases of RPA in the Supply Chain

Get to know some of the use cases for Robotic Process Automation in Supply Chain Management below:

  1. Its managers use Robotic Process Automation in industry to create, update, and manage contracts and other data for better supplier management.
  2. Retailers take advantage of it to ensure they have the right inventory levels to meet consumer demands.
  3. Supply chain managers use it to research the supplier and manufacturer markets using consistent criteria, allowing for easier supplier selection.
  4. Manufacturers easily respond to RFPs, questions, and quotes in a timely and accurate way.
  5. Retailers and manufacturers get early shipping notifications, so they can plan to receive and process raw materials or finished products.
  6. It can automate the data entry and processing of large amounts of information, such as invoices, receipts, and customer information. This will save time and make the processes less prone to errors.
  7. Imagine your customer care attending to customers' inquiries and requests 24x7 along with answering frequently asked questions, being able to route the calls to relevant departments without any hassles. All in all, providing speed improves the customer experience.
  8. It can automate team member information processing, such as leave requests, performance evaluations, and salary increases.
  9. Automate the tracking and managing of the flow of goods and materials through it, including the processing of orders, shipments, and invoices.
 
10-28-2022 Digital Transformation_06 Blog-02 Build RPA Center of Excellence
A technology that works within the software and eases human efforts and hence called Software Automation. Download to explore potential of RPA for Businesses

Summary

Robotic Process Automation in Supply Chain management results from a 43% time reduction in billing, managing data, credit, collections, etc., which are tremendous gains for any organization. SCM with automation gives the organization another level of hike in productivity, cost, etc. These both technology going so far in the future.

“Happy automation makes your process of work more interesting.”