On 04 December 2017 | Logistics Junction

Benefit of automation in supply chain management, logistics and road transport.


The global supply change industry is at the continuous growth and it is ever changing with the advances of technology in logistics and road transportation. They are helping to streamline the operations in long run. When it comes to logistics management, it becomes crucially important of making sure items are stored, transported and delivered properly and that too efficiently. This is where technological solutions become vitally important.

We at Logistics Junction strongly advocate that automating logistics management processes can help make transportation companies in pune & organizations more efficient and as a result, can have a significant impact on bottom lines. Apart from the process of achieving these better profit margins, there are a few other important benefits of bringing automation into the warehouse and distribution channels.

What Automation brings on the table:

Businesses are more and more taking advantages of “process automation,” which helps Transportation companies in pune and organizations integrate the processes and systems required to take the order and fulfilling them easier. Lately, the ‘lights-out’ type of warehouse, where every possible task is automated, has actually became an growing option wherever labour costs are too high, there is information arbitrage, and speed of fulfilment is a top priority. The latest technology ensures that those tasks are highly coordinated, so as to create a smooth transition from placement of the original order to fulfilment and delivery to the customer. By automating the entire supply chain from end to end and not just the individual tasks within it, logistics managers can focus less on everyday processes and more on making sure their supply chains are bringing in the optimum best at any given point.

Logistics Automation:

Automation or what we can call automatic control is known as the use of various control systems for operating equipment such as machinery, processes in factories, boilers and heat treating ovens, switching in telephone networks, steering and stabilization of ships or aircraft and other applications with least amount of human intervention possible. Some of these processes have been completely automated.

The biggest benefit of automation is that it saves labour, however, it contributes in saving energy and materials.

Also, to improve quality, accuracy and precision in the overall process which helps in the long run.

This same principle of automation, to decrease labour time spent on manual entry, if we take an example of it like, in the process of planning the movement of ordered and sold goods in the supply chain, also what we call as logistics, helps in costs reduction, decreasing the overall errors and bringing in the customer satisfaction.

As for our Logistics Junction Business, the Transportation Management System or in short, TMS, Logistics automation involves of all the automation features that are at the disposal for the proper management of the transportation and freight’s sector.

What we generally see automation in the logistics industry is the reduction in the manual entry of the freight shipment data and more of the option of the automatic retrieval options in the procurement of transportation in pune for your freight.


Benefits of Logistics Automation:

  1. Reduction in Costly Errors:

Logistics automation features such as integration to various services via number of integrated system and access to personalised data, as well as automatic accounting of entry of fuel charges, expenses and accessories, which will have to worry about again about keying in the wrong information.

On many instances these kinds of manual data entry errors will lead to increased shipping costs which results in having to pay for shipping twice or paying a higher freight rate due to entering an incorrect data.

  1. Wide range Transportation Mode Choice and Real Time Freight Rates:

To tackle the transportation costs the logistics, automation give you the feature of keeping the track of the rates that are going on as per the current market rate with the data analysis and the always updating to the latest rates on the Internet based platform. Hence, no more the issue of theoretical savings, only hard rates of interest based on live, vendor neutral access to real-time market rates.

When you have multiple carriers to choose from based on cost, transit time, and insurance, it empowers you to make the best choice for your specific shipment, thus saving you money over the long haul.

  1. Improved Customer Service:

How much it costs when a service loses its customer? Bad review of one, loses another pack of customer.

But with logistics automation features like on-the-go freight tracking, automated pick-up, maintained insurance and freight accounting built as per the custom specifications, owners as well as the customers themselves are empowered to know exactly how much the freight will cost and when the freight will arrive at its destination through automatic notifications.


  1. Real-Time Freight Data Analysis:

When there is an access to real time freight data and the ability to run reports, one can be better served at making better business decisions based on your trends and history.

For example, if a company offers good transportation service in less cost but often delivers the product late than it was supposed to be then it creates a stigma of bad customer service.

In the long run, creating such a bad stigma just to save the money of the freight can give momentary benefits but it eventually hurts in the longer run as not being able to gain new customers or possibly losing customers remains a strong possibility in such cases.


Ad-hoc benefits automation bring with main goals:


Safer Working Environments:

For example, in the warehouse with temperatures reaching -38 degrees Fahrenheit, which definitely not a safe work environment to work, automated robotics or automated vehicles brings in a lot of safety in term of human work and efforts.

Thus, people working can take on safer, higher-level responsibilities in the management and maintenance of these automated systems. This is changing the overall working situations more and more favourable for the people evolved in it.

Improved Inventory Management:

In the cold supply chain, it is important to keep products in the proper climate controlled environment as long as possible, reducing the possibility of product getting spoiled or degraded. By employing just-in-time fulfilment strategies, warehouses don’t have to plan the orders way ahead as per the future requirement by making more frequent yet planned in advanced freights for the product that are bound to spoil early so as not to run out of stock nor to face the challenge of wastage of stock.

As automated systems can make proper freight planning and limiting products and making their sustainability more efficient. This prevents warehouses from holding products for too long and expiring, leading to product waste, or worse, reaching consumers and becoming a safety concern.

Reduced Costs:

By improving space utilization, there is less area to cool and often fewer refrigeration units are needed, leading to additional energy and cost savings. Further cost reductions arise from making the interior lights less in the number and the energy savings made possible by using storage and retrieval machines fitted with regenerative braking systems. These mechanisms allow companies to store surplus braking energy share among all the machines using power from the same grid.



Automation in the supply chain management is bringing a lot on the table for the industry. With increased efficiencies, more powerful tools, better working environments and more and more gains in terms of profit, Automation is refining and will keep refining the Logistics and Supply Chain Management making it better every day.