How leading businesses are preparing for automation and AI

The logistics sector is surrounded by new prospects that automation and AI can offer businesses in the near future. The use of autonomous mobile robots, collaborative robots (Cobots), automated storage-retrieval systems and advanced sorting systems is growing within the sector. The development of and investment into new technologies is, perhaps unsurprisingly, greater than ever before. So, what are leading logistics businesses doing with this new technology and how are they preparing to incorporate them into their organisations? 

As we continue to see a rise in the adoption of automation and AI, and the benefits of utilising this technology are further realised, discussions around the role humans will play in the future of logistics continue. More recently, the focus has been on getting the balance right between artificial intelligence and human intelligence working together to improve problem-solving and overall productivity. It has largely been agreed that the implementation of such technology will support people in the more strategic areas of their roles and enable professionals to perform their day-to-day roles more efficiently. The ‘Cobot’ is one example that remains popular with businesses and is a technology that employers are having to upskill and train their staff in to ensure that efficiency benefits can be realised when using automation and robotics. 

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New positions created from automation and AI

Currently, 80% of warehouses are manually operated without automation support. However, many logistics companies are looking to turn to robotics for efficient, accurate, and long-term cost savings. We have seen an increase in both engineering and IT professionals entering the logistics industry over the last five years. It has been less focused on specific job titles, and more around the expertise to support the systems driving innovative supply chains. 

Many of the most highly repetitive jobs within logistics are seeing the greatest benefits from automation and AI. For example, automation and AI implemented in retail fulfilment centres have seen significant gains in picking speed, the average time to fulfil an order and overall delivery times. With costs rising and available labour shrinking, more consideration is being given to automation and robotics in order to maintain output in challenging service levels and increasing customer demands. 

How top businesses are gearing up for success

We are seeing a shift in clients beginning to set up or further invest in talent that is responsible for evaluating automation and AI within the supply chain. As it is crucial for staff on the ground to be able to develop and improve any processes that are in place, businesses are building teams that are skilled to do so when working with automation and AI. This can be both on a permanent basis and on an interim basis, where expertise can be brought in to upskill and educate an already existing workforce. 

It is worth noting that it is much easier to develop and train an existing workforce, than it is to develop a whole new team. A happy medium that capitalises on the skills of new talent and the experience of your existing team, will help drive your new systems and processes to become the best that they can be.

The needs of every business are different and this will determine what type of automation or AI processes that are adopted. As a rule, you should be determining whether a human, robot, or a combination of both will give you the desired result and which will benefit your business the most. This will likely differ between departments and even may depend on the season. This is why putting a plan in place to tackle different scenarios and considering the potential roadblocks that you might face is crucial before implementing new processes. 

Michael Page remains a leading recruiter within the logistics sector. We are constantly working with employers to source the right professionals, build talent pipelines, whilst helping them to understand the current logistics recruitment landscape. In an industry that is operating in a market with an ageing workforce, labour shortages, a growth in technology, a recruitment partner is becoming more important than ever to enhance talent attraction, development and retention. 

If you are looking to hire top logistics professionals to your business, get in touch with one of our specialist recruitment consultants for a confidential discussion. Alternatively, sign up for a MyPage account to make the most of our matching technology when looking for your next role. 

Dean Rose
Director, Michael Page Logistics