With the advent of globalization, companies have had to cut expenses, streamline operations, and increase marketing efforts. Many companies outsource functions to focus on their core business. But this is no longer enough. The world is in a digital age. Companies are adopting automation to speed up operations and eliminate human error. The logistics automation market was estimated to be 39.29 billion dollars in 2017. Furthermore, 67% of respondents in a study indicated that running out of stock was the top reason for losing customers.
Automation is being used in manufacturing, transportation, defense, information technology, operations, and utilities. The logistics industry is no different. Many processes and procedures in this industry are time-consuming and highly susceptible to human error. One way the logistics industry has implemented automation is through the sorting process.
What is automated sortation
Automated sortation is the process of identifying items on a conveyor system and routing them to the appropriate destination. This is accomplished through the use of a variety of devices. These devices are controlled by task-specific software.
High-speed sortation saves time. Time is money. These systems often come in a variety of designs to meet the needs of businesses. The technology that powers this system provides a high return on investment (ROI).
Benefits of automated sortation in logistics
There are several benefits associated with automation in the logistics industry. Apart from saving time and money, the system can increase efficiency.
- Businesses can save on labor. Automation means that fewer people are required to do the job. Labor is usually one of the biggest expenses of any business. Automation can cut the cost of labor quite substantially.
- Automation can greatly reduce costly errors.
- Inventory management can be fully integrated.
- Automation can also improve customer service as well as communication between the shipping company and the customers.
- There is much greater organizational control when automation is implemented.
- Another great benefit of automated logistics software is that is can be scaled to fit the needs or operations of any business.