Managing a global supply chain with multiple partners adds layers of complexity and potential for errors, as disparate systems and lack of integration can lead to inefficiencies and data inaccuracies. By leveraging technology to automate data collection processes and streamline data analysis, companies can unlock significant benefits across their supply chain. This article explores in detail a variety of these advantages, examining how automation in supply chain data collection can lead to transformative improvements in efficiency, accuracy, customer satisfaction, and overall operational effectiveness.
One of the primary advantages of automating supply chain data collection is the substantial increase in efficiency and accuracy. More shippers, more consignments, more routes, more modes, all mean more paperwork. Manual data entry is time-consuming and prone to errors, which can lead to missed shipments, delays in order processing, inaccurate inventory levels, dissatisfied customers, and damaged reputation due to disruptions and lack of visibility across the supply chain. According to a 2023 study by McKinsey, companies that have implemented automated data collection systems in their supply chain saw a 20-30% improvement in operational efficiency. This reduction in manual data entry not only speeds up the process but also ensures greater accuracy.
By streamlining operations and improving accuracy, automated data collection can lead to faster order fulfilment and fewer errors, ultimately resulting in higher customer satisfaction. According to research by Gartner, 83% of businesses prioritise customer experience enhancement in their digital business strategy for supply chains, and automating data collection is a key step in achieving this goal, as it enables companies to respond more quickly and accurately to customer needs and preferences.
The number of companies looking to design supply chains with the end customer in mind have accelerated since Covid. As businesses continue to adapt to a growing demand, automated data collection systems also provide the agility needed to quickly adjust to new operational models and market demands. Implementing automation can help optimise resource allocation by providing accurate, real-time data on inventory levels and production capacity. Automated systems can also process large amounts of data to generate more accurate demand forecasts, helping companies optimise inventory levels and production schedules and providing supply chain managers with unprecedented visibility into their operations.
In fact, AI-powered supply chains are now 67% more efficient than traditional supply chains that do not use AI, according to a study by Research and Markets. This dramatic improvement in efficiency demonstrates the potential of automated, data-driven approaches to supply chain management.
By integrating systems and leveraging technologies like AI, IoT, and big data analytics, pharmaceutical companies can transform their supply chains into agile, responsive, and cost-effective operations. A PwC survey found that 79% of pharma executives believe that intelligent automation will significantly impact their industry in the next five years. Embracing automation is not just a competitive advantage but a necessity in the increasingly complex and regulated pharmaceutical industry.
While supply chain visibility and transparency are top priorities, a 2022 McKinsey survey found that 45% of respondents either have no visibility into their upstream supply chain or can see only as far as their first-tier suppliers. This lack of visibility often leads to disruptions, inefficiencies, and challenges in managing inventory. Automating data collection by integrating directly with suppliers' systems can help bridge this gap, providing companies with the comprehensive view they need to optimise their supply chains. This improved transparency enables better decision-making and more effective risk management.
McKinsey’s latest annual survey of supply chain leaders states that the share of respondents who have implemented dashboards for end-to-end visibility has jumped significantly to 79 percent, with a strong focus now on enhancing supply chain planning processes, because improved visibility has revealed weaknesses in the underlying processes companies use to manage their supply chains.
The recent McKinsey report also revealed that 76% of organisations have installed planning and scheduling systems. This widespread adoption of automated systems highlights the growing recognition of their value in supply chain management. By automating data collection, companies can ensure that their planning and scheduling processes are based on accurate, up-to-date information. This real-time data access allows for more responsive and agile supply chain management.
Last but not least, automation also helps ensure compliance with stringent industry regulations, ultimately enhancing patient safety. For instance, track and trace technologies provide end-to-end traceability, which is crucial for preventing counterfeiting and enabling targeted recalls when necessary. The data collected through these systems also provides valuable insights for decision-making and process optimisation, further contributing to the industry's overall effectiveness and safety standards.
Whilst automating supply chain data collection offers numerous benefits, integrating new automation technologies with legacy systems and processes can be technically challenging and requires careful planning. At Veratrak, we’re always striving to build solutions that enable a more transparent and collaborative supply chain. Our award-winning software solutions simplify complex workflows and enable collaboration, visibility and data-sharing across the full supply chain.
Purpose-built for the life sciences supply chain, Veratrak’s Hub platform centralises the data collected from your partners into a single, standardised dashboard by linking systems across your supply chain to improve visibility and facilitate data collection. When connecting to our scalable and secure platform, you eliminate the need for peer-to-peer connections by automating the data collection process with your suppliers, and access a single source of truth for logistics and warehousing services.
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