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How E-commerce Creates New Trends in Supply Chain Management

As years go by, society continues to adopt new technological advancements.

Self-driving cars, artificial intelligence, digital money, 5G are only a few of many breakthrough technologies that we have today that continue to benefit society. Jobs are being replaced by smarter automated machines that reduce errors and maximize efficiency. In the article, “How E-commerce Creates New Trends in Supply Chain Management”, author Michelle Schlechtriem from Meili Robots writes on how the rise of e-commerce has influenced the warehousing and manufacturing industry to focus on developing new automated solutions in order to maximize performance. 

Today, more and more people are ordering online since it saves you time and it’s simply way easier to make purchases. It only takes a few clicks to make your order and receive it in a couple of days at the foot of your doorstep. In order to keep up with these online orders, more and more companies are switching from manual labor to adopting and developing automated solutions such as robots in their operations. This has caused the global warehousing automation market to grow tremendously as it is now projected that the market will show an exponential growth of $15 billion! In fact, due to the high demand for automation, “the mobile robotics market in material handling equipment and logistics will be valued at $75 billion by 2027”! 

Manual Labor is essential in companies, but humans aren’t perfect, therefore mistakes will happen. Although there’s not much that can be done, these mistakes are costing companies money and can interfere with efficiency. In order to avoid this, companies have adopted the hybrid model in operations management which is essentially having both manual labor and

adapting and developing automated solutions. Businesses and companies are now loving this approach as “nearly 50% of corporations are planning to implement a hybrid approach to order fulfillment, combining both in- and outsourcing methods” which will only get higher in the future. The key is to have a combination of both in order to maximize performance and attain satisfied customers. These days people want their products delivered fast and by having robots be a contributing factor, companies will for sure be able to increase and improve their production and delivery process. 

Many companies have stated that since adapting robotic warehouse solutions, many warehouses have experienced double-digit growth as efficiency and productivity continues to improve. It is estimated that there will be 50,000 robotic warehouses by 2025 as many organizations continue to implement service robots within their operations. 

Overall, with the rapid growth in e-commerce, there has to be a solution to keep up with producing and shipping out these orders. That solution has clearly been using robotic services in order to maximize efficiency, productivity, and customer satisfaction. It won’t surprise me in the future if robots are 98% of the workforce with only a few employees to check on the condition of the robots since they are less likely to make mistakes and faster at work. Society will continue to move forward with technological advancements, therefore companies will need to keep up with the newest advanced trends in operations in order to be able to compete with their competitors as well as increasing their revenue at the same time! 

By: Julian Barajas





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