CSCMP defines logistics as “inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management and management of third-party logistics services providers.” To varying degrees, automating activities across the defined components of logistics is apparent today and continues to progress as efficiencies and capabilities of automation are proven. However, to say that any one of these functions can be fully automated to the extent that human interaction is entirely removed begins and ends with the activities and capability of service providers to automate.
Transportation planning and route optimization, in addition to warehouse inventory management software, are among the most tested and widely utilized automation platforms in the supply chain. The multi-decade journey from introduction to where we are today speaks to the level and quality of automation that companies share as having value-added optimization to their work processes. That has become a place where individuals who used to look after these processes manually are now automated. Yet, logisticians are still involved in heuristically evaluating the automated output for accuracy, conformity to compliance, labor utilization and implementation issues such as mechanical breakdowns or inventory variances. For other logistics functions, such as network design, much of that work is done using highly sophisticated “solver” type algorithms but the proof analysis still must be done by humans who then need to test the results from an implementation and service aspect.
With the rapidly evolving AI/machine learning landscape, more of what we see in the logistics functions will grow in the application of automated solutions to manage work. And reflecting on the recent advancements (and setbacks) in autonomous vehicles and robotics, it won’t be long before we make significant changes in the use of automation. To say, however, that automation will fully replace humans, the definition of “fully automated,” remains to be seen. On the road ahead, the degree of logistics smarts that logisticians will need to have will need to increase as automation becomes a greater part of the logistics functions.