Process automation – the biggest trend in logistics. Should every company implement it?

According to Mordor Intelligence, the global logistics automation market, which is expected to be worth $75.24 billion in 2024, is projected to exceed $120 billion by 2029. The report also indicates that it’s typically large enterprises that invest in the automation of logistics processes. But what about smaller companies? Do they have the capability to automate?

Logistics automation refers to the use of advanced technologies such as robots, warehouse management systems (WMS), autonomous vehicles, and artificial intelligence (AI) to optimize logistics processes. This includes automating tasks like planning, information flow, and minimizing human intervention in transport operations. Automation allows logistics companies to perform tasks faster and more accurately, which is especially crucial in the fast-paced world of e-commerce.

Among the most prominent trends in logistics, reducing time and increasing profitability are key topics. Modern solutions, even for small companies, promise time savings ranging from 30 minutes to several hours. There’s significant interest in four areas in particular: electronic bill of lading (e-CMR), dock scheduling systems, transportation management systems (TMS), and load space optimization.
According to Mordor Intelligence, warehouses hold the largest market share (41.58% in 2022) in the logistics automation sector. However, transport automation is the fastest-growing segment, driven by advancements in autonomous deliveries, TMS solutions, and AI-driven systems.

Challenges in Modern Logistics

The rapid growth of e-commerce has shown that supply chains often struggle to keep pace. To maintain high service quality, companies have had to streamline their processes. Although more and more companies are adopting automation, some are still hesitant. This resistance is most common among smaller businesses and stems from a few factors. Initial investment costs for technologies like robots and AI systems can be high, creating a significant barrier. Companies might also worry that integrating various tools could be complicated. Furthermore, logistics is a complex field with many variables, and automation systems need to be flexible enough to adapt to changing conditions, which can be difficult to achieve. Additionally, firms fear operational disruptions during the implementation phase and may lack the skilled staff to manage the new technologies. So, will smaller companies that don’t adopt automation lose their competitiveness?

E-CMR

Italian researchers calculated how much time can be saved daily using electronic bills of lading. According to their findings, companies could save 57 minutes per day. Moreover, using e-CMR could accelerate the payment process for services rendered. Trans.eu is an example of a platform that has successfully implemented this solution across Europe.

Dock Scheduling

For many logistics professionals, loading and unloading are associated with chaos and stress. Will the shipment arrive on time, and will it fit into the schedule without disrupting other orders? Proper warehouse time management can reduce waiting times for loading by up to 70%, while also increasing efficiency. Polish company CargoON offers a solution that specializes in scheduling ramp times, addressing common issues such as transport delays due to long queues at loading docks.

TMS

Transportation management systems (TMS) are not new, but what’s changing is the accessibility of this software, even for smaller transport companies. A well-designed system not only provides real-time insights into ongoing orders but also automates tasks such as estimating new shipments. Additionally, customers can track the status of their deliveries in real-time, enhancing transparency and communication.

Goodloading Load Planner – A First Step Toward Automation

Companies looking to automate their load planning processes should consider the Goodloading application. This tool allows for precise planning of vehicle and container space, optimizing load placement to improve transportation efficiency and reduce unnecessary costs. Users can visualize their loads, foresee potential issues with improper loading or overloading, and generate load plans that can be used by drivers and warehouse workers. Implementing such tools is a key first step toward broader automation, translating into significant time and resource savings while enhancing operational safety.
Goodloading also offers API integration, allowing for seamless information flow and load planning functions to be integrated directly into a company’s own system.

Why Is Logistics Automation Necessary?

Automation in logistics is becoming increasingly crucial for companies, offering many benefits such as improved efficiency, cost savings, and the ability to adapt to rapidly changing market conditions. Here are some key reasons why logistics companies are adopting automation:

1. Labor Shortages
   The transport and warehousing sector is facing labor shortages, making automation a necessity. Automated solutions, such as mobile robots and management systems, help companies manage these shortages by improving operational efficiency and reducing reliance on hard-to-find workers.
2. Increased Efficiency
   Automation allows companies to handle more orders in less time while reducing operational costs. Optimizing resources and minimizing errors results in higher customer satisfaction and increased profitability.
3. Cost Reduction
   Automation reduces operational costs by lowering the need for manual labor and minimizing human error. Automating processes such as inventory management and transportation reduces the risk of delays and losses, leading to cost savings. Although the initial investment in technology may be high, the long-term benefits of increased efficiency and cost savings outweigh these upfront costs.
4. Managing Supply Chain Complexity
   The increasing complexity of global supply chains, driven by globalization and the rise of direct-to-consumer sales, requires more advanced management systems. Automation enables logistics companies to better manage transport, track shipments in real-time, and synchronize different stages of the delivery process, making it easier to respond to disruptions or changes in demand.
5. Better Communication and Data Flow
   Automated warehouse management systems (WMS) and transportation management systems (TMS) improve communication both within the company and with customers. Real-time updates on inventory, routes, and delivery times streamline the flow of data across departments, making it easier for employees to access critical information, reduce errors, and make faster decisions.

Should Every Company Automate?

Implementing automation can offer numerous benefits to logistics companies, but not every company needs to fully automate or do so immediately. Large companies, with their complex processes, clearly need automation to stay competitive. Smaller companies, however, can focus on automating specific areas that present the greatest challenges, using affordable tools to improve efficiency without overextending their budgets.