In an ideal world, a resilient supply chain would operate smoothly and without disruption, ensuring that raw materials and finished products arrive where they’re needed, in the right quantities and always on time. We have not yet reached this ideal, however, and bottlenecks remain a stubborn concern across the supply chain, often popping up where enterprises least suspect them.
These bottlenecks threaten otherwise seamless processes, and can create a cascade of supply chain disruptions. This ultimately trickles from manufacturing to distribution and finally results in low customer satisfaction and a less-than-impressive bottom line.
Enterprises have been desperate to banish bottlenecks for years, and while many mechanisms have sparked considerable progress, this challenge remains as relevant as ever. Add unforeseen issues such as a pandemic, and it’s easy to see why status quo solutions are no longer sufficient.
The good news? Exciting solutions using automated technologies and robotics are within reach and many enterprises across many industries have already seen incredible results after implementing these solutions., The main challenge is knowing which automated strategies will work best to beat bottlenecks in various settings and elevate supply chain management.
Understanding Supply Chain Bottlenecks
A supply chain bottleneck represents a point of inefficiency, in which constraints impede the overall flow of goods, materials, or services. These sometimes arise due to imbalances — often when demand exceeds available raw materials or available labor. No matter why or in which stage they occur, bottlenecks disrupt the supply chain process, causing ripple effects that extend far beyond the immediate point of congestion.
Bottlenecks are a nearly universal problem across the supply chain, with businesses in all sectors (not to mention, their customers or clients) frequently complaining of delays but also struggling to implement a proactive approach to address these supply chain issues.
While causes of bottlenecks can vary greatly, they represent, in a general sense, an issue with planning, along with the inability to fully anticipate the nuances of supply and demand. They can lead to significant gaps between an organization’s optimal input and output, which would ideally remain evenly balanced over time.
Real-Life Examples
Bottlenecks have been a near-constant source of concern these last few years. Many originated with the COVID-19 pandemic and the ensuing global shockwave that brought chaos to supply chain operations. Years later, many organizations are still struggling to find their footing — and customers have witnessed this first-hand. Recent examples include:
- Semiconductor shortages. Hobbling the automotive industry in the years following the COVID lockdowns, severe semiconductor shortages forced staggering numbers of vehicles to be removed from production, leading to low inventory and higher prices for consumers. This trickled into the used car market, where prices even still remain shockingly high.
- Active pharmaceutical ingredients (APIs). At a time in which effective medications were especially important, many patients were unable to access the prescriptions they desperately needed due to a general lack of active pharmaceutical ingredients (APIs). From flu medicine to ADHD prescriptions, many important drugs have been persistently in short supply for years.
Why Do Supply Chain Bottlenecks Happen?
While the root causes for most supply chain bottlenecks involve imbalances between supply and demand, many scenarios can spark these imbalances in otherwise well-run organizations. Among the most common triggers include:
- Global events. COVID proved to be a worst-case scenario for the supply chain, but pandemics are by no means the only sources of supply chain chaos. Anything that disrupts labor or limits access to raw materials can be problematic. Often, these issues stem from international conflict. The war in Ukraine, for example, has sparked major agricultural disruptions while also standing in the way of important transportation routes.
- Natural disasters. From earthquakes to hurricanes and even droughts or snowstorms, many climate or weather events can spark supply chain issues that, at first glance, appear beyond our control. These disasters may damage critical facilities or infrastructure while also limiting the availability of raw materials.
- Logistical inefficiencies. Not all bottlenecks result from wide scale events or catastrophes. Seemingly minor issues can also lead to significant bottlenecks. These can be surprisingly difficult to detect and vary greatly between businesses. Common problems include poor layouts within facilities, along with equipment failures and traffic congestion. Sometimes, the very technologies meant to streamline processes actually contribute to bottlenecks, especially if poor integration leads to data silos.
How Robotics & Automation Can Help
Bottleneck prevention in businesses and warehouses calls for a strategic and highly layered approach, but robotics and automation can elevate these efforts, helping organizations overcome common challenges such as labor shortages and limited supply chain visibility.
These solutions can grant businesses a major edge over the competition, driving better overall efficiency and also making enterprises more resilient and adaptable. Advantages worth considering include:
Reducing Lead Times and Delays
Lead times determine how long it takes to ready goods for delivery. If lead times are consistently short, bottlenecks are less likely — simply because materials and goods will flow through other areas of the supply chain with increased efficiency.
Robotics reduce lead times through continuous, 24/7 operation and by limiting variability in repetitive tasks. These systems are also more accurate than conventional, human-based processes — and, when the need to correct mistakes is limited, overall supply chain efficiency can improve dramatically.
Improving Supply Chain Visibility
Real-time visibility plays a vital role in bottleneck prevention and mitigation. When leaders know exactly what is happening in all corners of the supply chain, they are better equipped to respond to small issues before they spiral out of control. Robotic systems can be integrated with visibility-enhancing technologies, with many incorporating sensors and even delivering real-time insights into equipment performance and other concerns.
Increasing Supply Chain Resilience
By boosting real-time visibility and general efficiency, robotic systems enhance supply chain resilience. These systems are highly scalable so they can be adjusted as needed to address fluctuations in supply and demand. Further improvements can be realized by integrating robotic solutions with AI solutions and other advanced technologies.
Optimizing Warehousing & Inventory Management
Promising optimized picking, storage, retrieval, and packing, automated systems enhance efficiency and accuracy within warehouses and distribution centers. In these environments, the right solutions can expedite order fulfillment processes while also boosting precision and even improving worker safety. Integrated with Warehouse Management Systems (WMS), these systems facilitate dynamic slotting, in which item placement is influenced by consumer demand.
Key Technologies Driving Automation
Many exciting solutions promise to bring the best of automation to the modern supply chain. Not all strategies are equally relevant in all environments, so it is important to explore the options with the help of an expert team who can help determine how certain solutions can be integrated to drive improvements in throughput and general adaptability.
Advanced Robotics Solutions
Robotics form the basis of modern supply chain automation, completing repetitive tasks at a rapid rate while promising consistent quality and reduced operational expenses. A range of robotic systems can help enterprises avoid potential bottlenecks, but the most prominent include:
- Autonomous mobile robots (AMRs). Equipped with sensors and often using Light Detection and Ranging (LiDAR) and GPS, AMRs perform a variety of important tasks without requiring human intervention. These cutting-edge robots can navigate complex environments on their own, avoiding obstacles without requiring direct oversight.
- Robotic process automation (RPA). Capable of automating and expediting rule-based tasks, RPA lends greater efficiency to everything from stock level updates, shipment tracking, and even payment processing. RPA also helps to ensure that software solutions are properly integrated with robotic systems.
Machine Vision
As a key element of modern quality control, machine vision systems can quickly identify defects and limit potential disruptions (such as complex return processes) that errors could otherwise prompt. MV technology can also be helpful for tracking inventory levels, thereby reducing the potential for future stockouts.
RFID and Data Tracking
Radio-frequency identification (RFID) relies on radio waves to identify objects, transmitting critical data between readers and electronic tags or labels. Boosting efficiency in scanning (especially during picking and packing), these systems promise greater efficiency in stock replenishment while also limiting the need for time-consuming and error-prone manual processes.
Peak Technologies offers end-to-end RFID solutions, ensuring the strong integration of all RFID components to drive streamlined and adaptable inventory systems. Partner with Peak to make the most of RFID.
Other Technologies
While the solutions highlighted above are already heavily used across industries, these represent an early wave of robotics and automation, which will be further optimized through advanced options such as artificial intelligence and machine learning. Helping robots interpret and fully use a wealth of data, AI allows robotic solutions to adjust when needed, especially in response to changing conditions.
Partner with Peak Technologies
Robotics and automation are increasingly crucial in a competitive and bottleneck-prone market, where streamlined solutions and real-time visibility help businesses adjust to changing conditions with ease. Implementing these technologies can be difficult, however, and it’s important to achieve a strong ROI while navigating high-level robotic solutions.
Peak Technologies can help. Offering a wide range of supply chain solutions, we can work with you closely to determine which strategies are best poised to meet your organization’s unique needs. Among our many solutions are robotics and machine vision integration. Contact us today to learn how you can leverage our solutions and bypass supply chain bottlenecks.
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