Statistics show that the automated logistics industry is a multi-billion dollar industry. Also, research project the logistics automation segment to reach a CAGR of 12% for the 2018-2023 period. These figures show that there is gradual widespread adoption of automation in the logistics industry. Studies by the McKinsey Global Institute indicate that the logistics business has the third-highest automation potential. But how can automation help cut costs in the logistics business?
Lower cost of labor
Businesses would spend an average of $850 each week on employee wages which can be a lot in a large organization. While automation will not replace all positions, it helps in saving labor costs considerably.
Quicker movement of goods
One unique feature of automation is that it helps to streamline the movement of goods. Also, automation helps make the items traceable and get to their intended destinations thereby cutting down possible financial risks.
Automation in logistics often means features such as address books, commodity integration as well fuel surcharge entry, etc. using ERP systems. There, it helps reduce the risk of inputting incorrect information or values. Inputting the right classification and freight details helps get your delivery to the right destination at the right time.
Another beautiful feature of automation is that it transfers the process on a centralized platform which makes communication easier. Also, it makes handing over tasks from one section to the other easier.
A close look at automation and the logistic sector will show that they are moving together at a close pace. It suffices to say that automation has triggered the maturity and growth of the logistics sector and will continue to do so.