{"id":1893,"date":"2022-05-02T11:00:00","date_gmt":"2022-05-02T11:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-automation\/"},"modified":"2025-08-19T13:53:54","modified_gmt":"2025-08-19T13:53:54","slug":"supply-chain-automation","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-automation\/","title":{"rendered":"Supply Chain Automation: What Is It &amp; How Can It Help Your Company?"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-supply-chain-automation\">What is supply chain automation?<\/a><\/p>\n\n\n\n<p><a href=\"#h-benefits-of-supply-chain-automation\">Benefits of supply chain automation<\/a><\/p>\n\n\n\n<p><a href=\"#h-limitations-of-supply-chain-automation\">Limitations of supply chain automation<\/a><\/p>\n\n\n\n<p><a href=\"#h-what-supply-chain-processes-can-be-automated\">What supply chain processes can be automated?<\/a><\/p>\n\n\n\n<p><a href=\"#h-automate-your-supply-chain-with-shipbob\">Automate your supply chain with ShipBob<\/a><\/p>\n\n\n\n<p><a href=\"#\">Supply chain automation FAQs<\/a><\/p>\n<\/div>\n\n\n\n<p>When it comes to your business\u2019s supply chain, it can be tempting to stick with what works. If your business has been around for a while, there\u2019s a good chance that you\u2019re still completing inventory counts, <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/warehouse-order-picking\/\">picking<\/a>, packing, and other tasks manually.<\/p>\n\n\n\n<p>However, some manual supply chain processes are not only outdated, but actually inefficient and even detrimental to your business.<\/p>\n\n\n\n<p>Thanks to new technologies, merchants can now harness the power of automation in their supply chains. When correctly employed, supply chain automations can save precious money and time, improve your business\u2019s productivity, and prepare it for the future.<\/p>\n\n\n\n<p>In this article, we\u2019ll cover what supply chain automation is, the pros and cons of incorporating automation into your supply chain, which supply chain processes can be automated, and how a platform like ShipBob can help you automate your logistics.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-supply-chain-automation\">What is supply chain automation?<\/h2>\n\n\n\n<p>Supply chain automation refers to using technology solutions to perform or streamline supply chain processes without human attention, effort, or involvement.<\/p>\n\n\n\n<p>By incorporating automation technology such as machine learning, artificial intelligence, and digital process automation into the supply chain, a business reduces the manual work required to perform certain business functions.<\/p>\n\n\n\n<p>This in turn speeds up workflows and makes your supply chain more efficient.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-supply-chain-automation\">Benefits of supply chain automation<\/h2>\n\n\n\n<p>Automating your supply chain processes can have a number of benefits. Here are some of the ways that your supply chain can benefit from automation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-automating-manual-tasks\">Automating manual tasks<\/h3>\n\n\n\n<p>Supply chain automation enables your business to redirect human time and effort away from menial, time- consuming tasks, and devote that time and effort towards tasks that specifically require a human touch.<\/p>\n\n\n\n<p>For example, tasks such as generating essential documents, processing orders, assigning picking slots, and paying out invoices can be extremely time-consuming.<\/p>\n\n\n\n<p>Automating these tasks allows you to delegate to technology solutions that can complete the tasks much more efficiently, and frees human workers to attend to matters that actually need human input.<\/p>\n\n\n\n<p>This increases your <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-efficiency\/\">supply chain efficiency<\/a>, as you\u2019re not wasting your worker\u2019s time and potential on tasks that another entity could perform.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-minimizing-human-errors\">Minimising human errors<\/h3>\n\n\n\n<p>Humans make mistakes \u2014 and when tasks are performed manually, it\u2019s very likely that something will go wrong.<\/p>\n\n\n\n<p>By removing humans from the equation, automation lowers your risk of error and can prevent mistakes like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accidentally duplicating an orders<\/li>\n\n\n\n<li>Incorrectly entering data from inventory or order details<\/li>\n\n\n\n<li>Entering inaccurate customer information (email, phone number, shipping address, etc.)<\/li>\n\n\n\n<li>Picking &amp; <a href=\"https:\/\/www.shipbob.com\/blog\/packing-shipping-mistakes-businesses-makes\/\">packing the wrong item<\/a> in an order<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-increased-supply-chain-visibility\">Increased supply chain visibility<\/h3>\n\n\n\n<p>Maintaining supply chain visibility requires a lot of labour, communication, connectivity, and commitment from both merchants, suppliers, and service providers.<\/p>\n\n\n\n<p>Through digital <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-automation\/\">automation<\/a>, information is automatically recorded and updated in near real-time. This enables relevant parties to access important information when needed, track inventory, and communicate quickly throughout the supply chain.<\/p>\n\n\n\n<p>Increased supply chain visibility subsequently helps you quickly identify and resolve <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-bottlenecks\/\">bottlenecks<\/a> to prevent further delays and disruptions, and increases overall efficiency.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em><span>\u201cOur main need was a fulfilment platform that provided all the information in one place. So just having an interface like ShipBob\u2019s dashboard that actually allows us to understand what we\u2019ve got, where it is, what the problems are and where, and provide a lot more visibility into what we were doing was critical.\u201d<\/span><\/em><\/p>\n\n\n\n<p><span>John Greenhalgh, Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/a-year-of-dates\/\">A Year of Dates<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improved-customer-experience\">Improved customer experience<\/h3>\n\n\n\n<p>With automation streamlining your supply chain, your customers will reap the benefits, too. A largely automated supply chain gets <a href=\"https:\/\/www.shipbob.com\/blog\/order-accuracy\/\">accurate orders<\/a> fulfilled and shipped to customers quickly, and helps you maintain high customer satisfaction and loyalty rates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-limitations-of-supply-chain-automation\">Limitations of supply chain automation<\/h2>\n\n\n\n<p>Although automation has a number of benefits, it still has some limitations that you should keep in mind. These limitations may be particularly apparent in the <a href=\"https:\/\/www.shipbob.com\/blog\/small-business-supply-chain\/\">small business supply chain<\/a>, where there are fewer resources and smaller budgets involved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-currently-limited-to-certain-tasks\">Currently limited to certain tasks<\/h3>\n\n\n\n<p>Not all supply chain functions can be automated. While relatively menial tasks such as order processing, inventory counts, and administrative tasks are great candidates for automation, the majority of supply chain processes will still require human attention and involvement.<\/p>\n\n\n\n<p>For example, although you can generate picking lists automatically and assign warehouse robots to assist you in the physical picking itself, these robots are still incapable of making critical decisions based on the current situation (for instance, what to do in case of shortages). Moreover, they lack the dexterity needed to pick certain items that are stored in more challenging locations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cost\">Cost<\/h3>\n\n\n\n<p>Advanced supply chain technology often requires significant financial investment, often costing thousands of dollars in annual fees or one-time licenses.<\/p>\n\n\n\n<p>This type of major financial investment may not be viable for smaller ecommerce operations and startup DTC businesses. Typically, in order to access supply chain automation systems, these brands outsource their <a href=\"https:\/\/www.shipbob.com\/blog\/consolidation-warehouse\/\">warehousing<\/a> and fulfilment operations to a <a href=\"https:\/\/www.shipbob.com\/blog\/technology-enabled-3pl-fulfillment-top-benefits\/\">tech-enabled 3PL<\/a> or <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-service-provider\/\">logistics platform<\/a>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em><span>\u201cShipBob\u2019s technology provides cost savings. Other 3PLs pass fees onto the client for work they do related to manual processes because they lack the fulfilment technology needed to meet customer expectations.\u201d<\/span><\/em><\/p>\n\n\n\n<p><span>Carl Protsch, Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/fleo-shorts\/\">FLEO<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-supply-chain-processes-can-be-automated\">What supply chain processes can be automated?<\/h2>\n\n\n\n<p>While it isn\u2019t currently possible to automate your entire supply chain, merchants can automate key processes and tasks to save time, resources, and money. Here are some of the supply chain processes that you should consider automating.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-back-office\">Back-office<\/h3>\n\n\n\n<p>Supply chain automation makes administrative tasks and regular business processes much easier to manage.<\/p>\n\n\n\n<p>Certain tools enable you to automatically pull data from purchase orders into your software, and your financing and accounting tasks can also be automated by automatically processing invoices and maintaining your financial records.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-analytics\/\">Supply chain analytics<\/a> also benefit from automation, as automation helps a business owner keep track of key performance <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-metrics\/\">metrics<\/a> without spending hours gathering data and crunching the numbers themselves.<\/p>\n\n\n\n<p>In this way, supply chain automations can actually produce more accurate insights for your business to help you improve your current operations and plan for the future.<\/p>\n\n\n\n<p>For example, predictive analytics automations involving machine learning review historical inventory and sales data to improve <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\">demand forecasting<\/a> and procurement.<\/p>\n\n\n\n<p>Alternatively, cognitive analytics automations \u2014 programs where machine learning and artificial intelligence model human decision based on data sets \u2014 facilitate a smoother, quicker decision-making process. The smooth AI decision-making comes from the processes based on the <a href=\"https:\/\/www.superannotate.com\/blog\/guide-to-convolutional-neural-networks\" target=\"_blank\" rel=\"noreferrer noopener\">deep neural networks<\/a> of the ML models.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-transportation\">Transportation<\/h3>\n\n\n\n<p>Automation can also be applied in some of your transportation processes.<\/p>\n\n\n\n<p>Route-optimisation automations determine the best routes and assign the most suitable courier for shipments, which can help reduce transit time and lower shipping costs.<\/p>\n\n\n\n<p>Many automation tools give you better <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-visibility\/\">supply chain visibility<\/a> with real-time transit tracking. This enables you to keep a close eye on where your vehicles are, which <a href=\"https:\/\/www.shipbob.com\/blog\/goods-in-transit\/\">inventory items are in transit<\/a>, and whether there are any potential delays.<\/p>\n\n\n\n<p>You can then use this information to optimise the movement of your goods in order to reduce operational costs and transit times.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-warehouse\">Warehouse<\/h3>\n\n\n\n<p>Fulfilment and <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehousing<\/a> are the two <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-operations\/\">supply chain operations<\/a> that most often incorporate automation.<\/p>\n\n\n\n<p>Beginning with order processing, certain software automations can automatically receive and confirm orders, and send tracking information to customers.<\/p>\n\n\n\n<p>In some cases, these programs can also automatically forward every order to the fulfilment centre location that is closest to the order\u2019s destination.<\/p>\n\n\n\n<p>When it comes time to pick orders, some <a href=\"https:\/\/www.shipbob.com\/warehouse-automation\/\">warehouse automation<\/a> solutions involve goods-to-person (GTP), where machines and robots are used to assist human workers in the warehouse picking process. Pick-to-light (PLT) systems, which involve barcodes and LED lights, can also be used to improve the speed at which workers locate the right items to pick.<\/p>\n\n\n\n<p>Additionally, you can make use of the box selection algorithm to ensure that each order is shipped out with the ideal package size so as to reduce dimensional weight and minimise the risk of damage.<\/p>\n\n\n\n<p>Some warehouse automation tools even come with features to determine where to best store inventory to make the most of available space while increasing picking efficiency.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em><span>\u201cLogistics is something you never think about until it stops working, and we\u2019ve never come to that point with ShipBob. Everything just works. We are super happy with ShipBob and very impressed by how well they\u2019ve pumped out our large volume of orders.\u201d<\/span><\/em><\/p>\n\n\n\n<p><span>Sergio Tache, CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/dossier\/\">Dossier<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory\">Inventory<\/h3>\n\n\n\n<p>While inventory management requires human expertise, there are aspects of it that can be automated.<\/p>\n\n\n\n<p>Automatic <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-point-formula\/\">reorder point<\/a> notifications when you hit a threshold amount for a particular SKU helps you time <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-replenishment\/\">replenishment<\/a> perfectly, and prevent <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockouts<\/a> and <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/backorder\/\">backorders<\/a>.<\/p>\n\n\n\n<p>Some merchants choose to automate the <a href=\"https:\/\/www.shipbob.com\/blog\/restocking-inventory\/\">restocking<\/a> entirely, and set up their system to automatically reorder stock when a SKU hits its threshold to save time and trouble.<\/p>\n\n\n\n<p>Automatic inventory counts that are up-to-date, even to the minute, gives you the best visibility into inventory levels so that you know exactly how much stock you have left at a given time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-automate-your-supply-chain-with-shipbob\">Automate your supply chain with ShipBob<\/h2>\n\n\n\n<p>If your business is struggling with supply chain automation due to budget constraints or lack of resources, partnering with a logistics platform like ShipBob is a great solution.<\/p>\n\n\n\n<p>ShipBob in particular utilises automation strategically throughout the supply chain to optimise cost- and time-savings in each stage.<\/p>\n\n\n\n<p>ShipBob\u2019s software integrates directly with your ecommerce platform, so that as soon as an order is placed on your store, ShipBob automatically processes that order.<\/p>\n\n\n\n<p>Depending on which ShipBob <a href=\"https:\/\/www.shipbob.com\/blog\/choose-order-fulfillment-center-location-outsourcing-3pl\/\">fulfilment centres<\/a> you\u2019ve chosen to activate, ShipBob will forward each order to the fulfilment centre closest to that order\u2019s destination.<\/p>\n\n\n\n<p>Every fulfilment centre is equipped with automatic <a href=\"https:\/\/www.shipbob.com\/blog\/picking-list\/\">pick list<\/a> generation and Cubiscan technology to streamline the picking and packing process, and uses ShiPBob\u2019s proprietary <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/\">warehouse management<\/a> system to keep things running smoothly.<\/p>\n\n\n\n<p>Critical order and inventory management tasks can be automated through ShipBob\u2019s dashboard. Set up automatic reorder point notifications or restocking, get <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-visibility\/\">real-time visibility<\/a> into <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\">inventory levels<\/a>, and automatically calculate the ideal distribution of inventory across ShipBob\u2019s network of distribution centres.<\/p>\n\n\n\n<p>By outsourcing warehousing, fulfilment, shipping, and logistics to ShipBob, your business can access supply chain automations to optimise your supply chain performance, as well as a partner to help you along the way.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\"><div class=\"container section-info section-info-align-none \"><h6 class=\"section-title \"><\/h6><h2 class=\"section-content h2\">Supply chain automation FAQs<\/h2><p class=\"section-copy\">Here are the answers to the most popular questions about supply chain automation.<\/p><\/div><div class=\"container flex-container direction-col justify-none align-none flex-wrap\">\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Where is automation used in the supply chain?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Automation can be used in different stages of the <a href=\"https:\/\/www.shipbob.com\/blog\/retail-supply-chain\/\">retail supply chain<\/a>, including administrative tasks, transportation, warehousing, and inventory management.<\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Are supply chains being automated?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Many ecommerce businesses now rely on automation tools to streamline different processes in the <a href=\"https:\/\/www.shipbob.com\/blog\/end-to-end-supply-chain\/\">end-to-end supply chain<\/a>. Although the entire supply chain can&rsquo;t be automated, many of the time-consuming and manual processes can be improved with the help of automation.<\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Are supply chains going to be automated?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>While modern supply chains utilise automation frequently, not all supply chains are fully automatable. Supply chains will become increasingly automated as time goes on, but will likely always require human attention and focus in certain areas.<\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What are the pros and cons of supply chain automation?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Automation enables better <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-optimization\/\">supply chain optimisation<\/a> through increased efficiency, improved visibility, and enhanced customer experiences. Moreover, automation helps streamline the supply chain, minimise human errors, and increase profitability. The biggest cons associated with supply chain automation are the cost of implementing automation tools and the fact that only certain tasks can be automated.<\/p>\n\n<\/div><\/div><\/div>\n\n<\/div><div class=\"cta-container u-hidden\"><a class=\"btn btn-primary \" href=\"\"><\/a><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Discover how supply chain automation can increase operational efficiency, improve accuracy, and enhance the customer experience. <\/p>\n","protected":false},"author":194,"featured_media":1894,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[14],"class_list":["post-1893","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Supply Chain Automation: Benefits &amp; Strategies for 2025<\/title>\n<meta name=\"description\" content=\"Discover how supply chain automation can increase operational efficiency, improve accuracy, and enhance the customer experience.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-automation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supply Chain Automation: What Is It &amp; 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