AUTOMATION
76
A n ever-growing number of logistics and parcel companies are turning to automation to meet the demand of e-commerce . Supply Chain Digital explores McKinsey ’ s report , “ Automation in logistics : Big opportunity , bigger uncertainty ” and looks at some of the key reasons why automation is transforming the industry .
Machine learning is becoming an essential new technology for many logistics organisations as they seek greater efficiency and evaluate the quickest and most effective routes to market . Many key trends are pushing automation to the top of the logistics CEO ’ s agenda , according to McKinsey , based on three factors : a growing shortage of labour , increasing demand from online retailers and intriguing technical advances . McKinsey Global Institute believes that the transportation and warehouse industry possesses the third highest automation potential of any sector . McKinsey found over 50 technologies that could further automate some part of the supply chain , such as advanced robotics in warehousing , analytics for transport and IoT / smart-sensor applications . Logistics
APRIL 2020