How Robotics Take the Supply Chain to the Next Level

We all expected advanced robots to have a disruptive effect on industry — and now robotics has entered the supply chain, too. Some of the ways robotics will advance and reinvent supply chain operations and management are fairly straightforward, while others have been a little more unexpected. Below are four major ways robotics are already taking the supply chain to the next level — complete with specific technologies and implications for each one.

Robots Assume Customer-Facing Roles

Sometimes talking about supply chain operations makes it sound like something that happens away from the public eye. That’s far from the truth, because there are two major points along the average product journey where robots are poised to make a dramatic entrance.

Selective Automation Reduces Injury and Error Risks

One of the greatest supply chain robotics trends to come about so far is selective automation. Far from replacing human jobs outright, selective automation is helping us organize our efforts more effectively by getting people out of dangerous or risky environments, or out of the pilot’s seat of heavy equipment, or away from tedious and error-prone tasks.

Bolt-on Autonomy for Vehicles

There’s an emerging and appealing middle-ground between replacing machinery outright with automated versions and retrofitting your existing equipment, including vehicles, with technology that allows it to operate autonomously.

New Types of Human Jobs

This is not a specific technology. Instead, it’s a cumulative benefit of the technologies we’ve discussed here, as well as many others that are coming of age. All of them come with some welcome reassurance: We’re not obsolete quite yet.

The Supply Chain’s Bright Future

Each one of the benefits of robotics we’ve talked about is helping our global supply chains and all their operators realize a future where machines don’t reduce our quality of life, but rather help us better manage our resources and time. The intelligent application of robotics is one major piece of that puzzle.

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What to Expect from the Logistics & Shipping Sectors as E-Commerce Grows Up

Driven by new technologies and e-commerce growth, changes in the global supply chain are expected to impact industrial real estate for the foreseeable future.

Since 2012, Amazon has been aggressively expanding its logistics and shipping services worldwide, disrupting traditional supply chain operators with direct competition for their business.

Chinese “e-tail” giant Alibaba, meanwhile, has deployed technology that cuts into a portion of third-party logistics (3PL) operator profits.

Alibaba’s “One Touch” platform automates export-related services, such as customs clearance and logistics, to make it cost-efficient for small/medium-sized merchants to participate in the global marketplace.

Cyclical and structural factors, including overcapacity in the container shipping industry and greater use of technology in manufacturing, retail and logistics industries, are also disrupting the sector.

Automation and robots are replacing manufacturing, logistics and warehouse workers. A survey by PwC found that 59 percent of all U.S. manufacturers are using robots for some tasks.

A recent report from real estate services firm Colliers International analyzes how these changes are impacting the logistics landscape. The report also looks at the impacts on industrial and logistics properties.

Report author Bruno Berretta, associate director with Colliers International who leads the firm’s pan-European research activities, says that Amazon Prime has entered the logistics market to take control of its supply chain and improve delivery times. He notes that unofficially Amazon is becoming a 3PL service to third parties.

The company is making a big push to establish a logistics network, opening smaller distribution facilities near customers, according to Berretta, who suggests that Amazon is likely to start competing with traditional 3PL services as it opens new markets.

Additionally, Amazon wants to reduce shipping costs, which have a big impact on profits. The Colliers report notes that in 2015 Amazon spent $11.5 billion on shipping costs, which equated to 10 percent of its global sales. By delivering its own goods and using technology to streamline deliveries, the company estimates it would save $3 per package, or $1.1 billion annually.

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