With so many shoppers buying online, having an efficient distribution system has never been so important. After all, this is the system that sees your customers’ orders through, from the moment products are stocked to the time the order lands on the customer’s lap. Businesses can optimize their distribution processes in numerous ways, but one of the most popular is through automation.
An automated distribution system reduces the number of human errors that take place, which can ultimately save the business money and boost customer satisfaction. If you are new to automation, it can be a little daunting to begin. However, with the right help and knowledge, your business will be flying high with the assistance an automated system can offer.
Three of the top ways that automation can help optimize your business’ distribution process have been explained below.
Expedite Inventory Sorting and Packaging
Sorting and packing orders to be sent to customers can affect the supply chain costs and customer satisfaction. This is often the most complicated part of the supply chain, with different aspects having an impact: the size of the warehouse, the type of product, and so on. It can eat away at time without an effective procedure in place. Thankfully, automation can be used to speed up this process.
This is achieved through automation in the fulfillment center. An automated distribution center, which businesses can partner with, will likely use robotic goods-to-person (GTP) technology to navigate large warehouses. The GTP technology automatically brings items to workers for picking, which can optimize the process by saving them time and energy. This can often be accomplished through automated guided vehicles (AGVs) or conveyor systems, which removes the need for workers walking around warehouses to pick products.
GTP technology can help warehouse managers keep track of inventory accurately, and this will also boost the overall effectiveness and profitability of the entire business.
Real-Time Tracking and Visibility
Businesses will benefit greatly from real-time visibility. Not only is this now a core aspect of distribution and supply chain management, it can increase decision-making, reduce costs, and improve customer satisfaction. In fact, roughly 90% of customers have said that they actively track their orders. A business can accomplish all of this without requiring additional manpower thanks to automation.
Automated order processing, which can be part of inventory management and warehouse management systems, reduces the risk of errors in the order fulfillment and delivery procedure. Commonly, human error can result in delayed shipments, lost parcels, and other problems that can hinder the business’ reputation. However, with an automated system, orders can be tracked live from a single portal.
Having increased visibility allows staff and customers to track order statuses and receive updates in real-time. It can reduce the fulfillment costs the business pays and ensure deliveries are processed faster; this will definitely lead to happier customers.
Plus, real-time tracking can also be used to monitor inventory levels, which will keep warehouse managers updated and increase efficiency in this distribution process.
Anticipate Market Trends and Consumer Behavior
Utilizing an automated system in the distribution process can enhance the visibility of market trends and consumer behavior. This is managed by insights into customer preferences, inventory levels, and sales trends. With this information, the distribution center can make informed decisions and adjust to market conditions as required.
Whether the business is dealing with increased product demand or needs to avoid excess stock, automation can ensure the distribution center will respond and stay ahead of competitors. It can also be paired with AI to predict inventory levels, which allows your business to forecast trends. AI can foresee seasonal demand, analyze customer purchasing patterns, and alter stock levels appropriately. This streamlined system will enable businesses to save on expenses and better their customer experience, while they respond to market dynamics.
Automation is becoming increasingly common in various industries, and it has definitely earned a place in distribution. Not only does it ease the strain on workers and the overall business, it can ensure customers are more satisfied with the service they receive. This can do a lot of good for businesses in the long-term, with increased orders and more revenue.
But businesses should also conduct cost-benefit analysis before deciding if automation is the correct decision for them.