| | MAY 20249CIOReviewThe first step in the automation journey should be identifying labor-intensive, repetitive tasks that lend themselves well to automation. There are many such tasks that AGVs and AMRs can handle, freeing up financial and human capital to focus on other projectsforklifts, may operate in dedicated areas within a warehouse where there is little to no human interaction, thereby minimizing any possible accidents or injuries.· Scalable - AGVs and AMRs can be deployed in a warehouse of varying capacities. This is ideal as robots can be added and removed as needed, such as peak and off-peak times or where there may be an unexpected change in the workforce. · Response to labor challenges - Since the pandemic, there has been a drastic increase in the competition for labor. These robots can handle simple tasks freeing up highly valuable human resources for activities that require more human intervention. Robots have also proven to be a tool for employee retention. In DHL Supply Chain sites with high automation levels, associates have shared that they feel more engaged and fulfilled in their jobs and enjoy working alongside the robots.· Consistent costs ­ The robots typically have a fixed, agreed cost per unit, allowing for more accurate financial forecasting. With human labor, costs can fluctuate during the year due to unpredictable market conditions, leading to a need to raise wages or implement costly incentives. While these advantages make a valuable case for implementing robotics in your operations, it is crucial that you develop a clear plan before you rush into deployment. DHL Supply Chain's accelerated digitization program serves as a guidebook on how we nurture and deploy innovative technology solutions at scale. Five key tenants from this program that you can use in your plans include:· Let priorities drive strategy - The first step in the automation journey should be identifying labor-intensive, repetitive tasks that lend themselves well to automation. There are many such tasks that AGVs and AMRs can handle, freeing up financial and human capital to focus on other projects. · Understand the innovation landscape - The supply chain technology market is dynamic and encompasses hundreds of companies, which can pose a challenge when determining the type of technology best fits your operations. At DHL Supply Chain, we developed a proprietary innovation process that helps us to funnel the most promising solutions to our proof-of-concept stage before being scaled across our network. · Know your risk tolerance ­ Not every company is comfortable with being "early adopters". For the risk-averse company, you're better off focusing on solutions with a proven track record in applications like yours. Regardless of your risk appetite, it is always best practice to conduct a pilot to see how the technologies work in real-world applications and minimize the risk of making significant investments in solutions that might not be the best fit.· Maintain operational flexibility ­ Improvements in technology are being made at a fast pace. Be careful about locking your organization into inflexible technologies as the innovation market continues to evolve quickly. Luckily AMRs allows flexibility to implement complementary solutions or replace one solution with another when additional value can be realized.· Partner for success- Digitalization in today's supply chain is an ongoing process that must be executed with discipline while maintaining the flexibility to adapt to business and technology changes. Not all organizations have the resources to manage this. That's why partnering with an experienced third-party logistics (3PL) leader like DHL Supply Chain is often the fastest and most effective way to realize the immense benefits of supply chain digitalization. In today's environment, gaps in the supply chain have been exposed by volatility and dramatically shifting customer demand patterns, presenting numerous risks and challenges for businesses. Supply chain managers are also acutely aware that, despite the huge potential that technology holds to solve problems and transform our lives, there is no digital "silver bullet" and maybe also additional risks and challenges when technology is not deployed in a targeted and measured way. However, for DHL Supply Chain, AGVs and AMRs are one area in which we are seeing clear evidence of how digitalization can help fill those gaps and deliver increased efficiency and growth in the supply chain. Brian Gaunt
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