How Intelligent Automation Is Being Used to Optimize Inventory Management and Supply Chain Processes in E-commerce

Supply chain management and logistics in e-commerce refers to the procurement of raw materials, transportation, and product assembly at the warehouse so that products are ready to be delivered once ordered online by the user.

The post-pandemic period has ushered us into a new era where consumers love to shop online, and they demand speed, accuracy, and convenience at their doorsteps. This is why, e-commerce supply chains and logistics departments are under pressure to deliver as consumers anticipate them to. As brands want to deliver quickly, e-commerce logistics providers want to become more agile, responsive, and consumer-focused to meet the evolving needs of their users.

Intelligent automation comes to the rescue here. Various automation technologies, such as artificial intelligence, machine learning, and robotic process automation, are used to streamline processes, reduce costs, and improve accuracy. For instance, machine learning algorithms help in optimizing order fulfilment and delivery routes, and RPA can be used to automate repetitive tasks such as labelling and packaging.

According to a report by Mordor Intelligence, the global e-commerce logistics market is expected to reach USD 856.63 billion by 2026, growing at a CAGR of 21.2% from 2021 to 2026.

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Intelligent automation use cases in e-commerce logistics

While it isn’t possible to automate all the logistics and supply chain tasks, e-commerce merchants can use intelligent automation to improve efficiency, speed, and accuracy. Here are some of the supply chain processes that you can think of automating.

Demand Forecasting

Intelligent automation helps you predict current and future demand patterns and trends for specific products and regions. The data lets you organize and manage your supply chain plan, optimize inventory, work on transportation routes, and allocate resources in such a such a way that your products reach your customers without delay.

Demand forecasting is an essential component of your logistics planning because it enables you to understand the demand for your products in the market. Intelligent automation can analyze vast amounts of data from multiple sources, such as market trends, historical sales data, and customer behavior, to discover trends in customer demands.

Route Optimization

A great advantage of intelligent automation in e-commerce logistics is route optimization. Route optimization is a critical aspect of logistics planning because it helps you find the most efficient and cost-effective route for your delivery vehicles.

Leveraging artificial intelligence and machine learning, you can discover the usual traffic patterns, weather, and delivery time windows. The data helps you reduce wait times, improve your timely delivery, and minimize transportation costs.

Warehouse Automation

You can optimize your warehouse operations with the help of intelligent automation. In e-commerce, products are directly shipped from the warehouse to the doorstep of the consumer. Warehouse automation brings accuracy, speed, and efficiency to inventory tracking, order packing, and picking. When these tasks are automated, you can reduce the need for manual labor, leading to increased efficiency and productivity.

A significant benefit of integrating intelligent automation into your warehouse operations is the ability to improve order efficiency. Intelligent algorithms and learning models track your inventory and orders accurately. With these systems backing up your logistics and supply chain, you reduce the risk of errors and ensure that the right products are reaching the right people.

Fraud Detection

E-commerce is convenient for both the seller and the buyer, but the digital world leaves room for fraud and online theft. Intelligent automation lets you detect fraudulent activities, such as credit card fraud, fake orders, account hacks, and so on, much before they actually happen. When you can prevent fraud and theft, you are likely to reduce your losses and safeguard the interests of your consumers as well.

Quality Control

Intelligent automation gives you access to technology that monitors and analyses the quality of the products to be delivered to your consumers. While quality control can be accomplished by humans, machines can do it more efficiently, freeing up your human force to perform other tasks. With the detailed automated product quality report, you can identify defect rates, customer reviews, and work on other potential issues to improve customer satisfaction.

By using artificial intelligence and machine learning, providers can analyze transaction data, such as credit card numbers, location data, and transaction amounts, to identify patterns of fraud.

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Wrapping Up

E-commerce logistics has a major share in the entire global supply chain. With the unprecedented rise in online shopping, there is a huge demand for quick and efficient delivery of goods. It is crucial to optimize your logistics and supply chain to keep up with the evolving needs of your customers.

The future of e-commerce logistics looks bright with intelligent automation. It involves the use of artificial intelligence, machine learning, and robotic process automation that helps you optimize your end to end supply chain. With intelligent automation, you can improve the speed and accuracy of order and bulk processing, reduce errors, and enhance the overall customer experience.

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