Project Report

On

The Impact of Automation on Supply Chain Performance in Logistics Companies

By

SHIVARTH SINGH

FIB2142

PGDM 21-23

Under Joint Supervision of

Dr. Himanshu Goel

Presented in Partial Fulfillment of the Requirements of

Post Graduate Diploma in Management

 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

3, Institutional Area, Rohini, Sector-5,

Delhi – 110085, India

CERTIFICATE

This is to certify that the summer internship project report on “The Impact of Automation on Supply Chain Performance in Logistics

Companies” is a bonafide work of “Shivarth Singh, Roll No: FIB2142”, pursuing PGDM-International Business Batch (2021-23)

of Jagan Institute of Management Studies, 3, Institutional Area, Sec-5, Rohini, New Delhi – 110085. The report was prepared under my

supervision during 11/02/2023 – 09/03/2023.

Dr. Himanshu Goal

Professor

JIMS, Rohini, Sector 5, New Delhi

STUDENT’S DECLARATION

I declare that the Report on “ The Impact of Automation on Supply Chain Performance in Logistics Companies ” is an original

work done by me in accordance with the guidelines prescribed by the Dean’s office for preparation of Summer Internship

Project Report and the work has not been submitted anywhere else for review.

2
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

I understand that if the content of the work is found to be plagiarized at any time of its evaluation, my report can be rejected

and disciplinary action may be initiated against me.

Signature of the student

Shivarth Singh

FIB 2142

Acknowledgement

I wish to convey warmest thanks to my parents, who gave endless support and provided me with the opportunity to reach

this far with my studies.

An Organizational study is the golden opportunity for learning and self-development. I consider myself very lucky and

honored to have so many wonderful people who lead me through completion of this report. I express my deepest sense of

gratitude to Dr. Pooja Jain, Director, Jagan Institute of management studies Rohini Sector-5, Delhi.

I express my deepest sense of gratitude to Dr. Yukti Ahuja (IB Dean), Jagan Institute of management studies Rohini Sector-

5, Delhi.

It is my duty to express sincere thanks and gratitude to Dr. Himanshu Goel my guide for this project from Jagan Institute of

management studies Rohini Sector-5, Delhi, for supervising me in the preparation of this report.

3
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Table of Contents

Serial No. Particular Page No.

1 Abstract 5

2 Brief Outline 6

3 Problem Statement 7

4 Purpose of the study

5 Significance & objective of the study 9

6 Theoretical Review 11
6.1 Empirical Review

7 The impact of E business 14

8 The Strategy of Internal Logistics Systems 17

9 19

The Auto-ID impact on Supply Chain performance

10 Amazon automated system 21

11 Data analysis process 23

12 Use of Information and Communications Technology (ICT) tools in the small-scale 24

13 Factors influencing information and communication technologies (ICT) 25

14 General Discussion and Conclusions 29

15 Refences 31

4
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Abstract

The use of automation in the supply chain industry has transformed the way goods and services are moved from the supplier to the customer.

Automation involves the use of technology to perform tasks that were traditionally done manually. This research report examines the impact

of using automation on the supply chain industry. The report includes a literature review of academic journals, articles, and reports from

reputable sources, as well as primary data obtained through interviews with two companies that have implemented automation in their

supply chain processes. The results of this research indicate that the use of automation has improved efficiency and reduced costs, improved

the quality and effectiveness of employees, improved internal synchronization, and led to increased resource utilization and time spent on

each job. However, the implementation of automation in the supply chain industry is not without its challenges, such as the integration of

different systems, the training of employees, and the management of data. Overall, this research highlights the significant impact that

automation has had on the supply chain industry and the potential benefits that it can bring to companies that implement it effectively.

Brief Outline

The supply chain industry is a critical component of the global economy, responsible for ensuring the smooth flow of goods and services from the supplier to the cus -

tomer. The traditional supply chain process involves various manual tasks, which can be time-consuming, inefficient, and prone to errors. However, with the advance-

ments in technology, the use of automation has transformed the way supply chain processes are executed. Automation involves the use of technology to perform

tasks that were traditionally done manually, such as sorting, packaging, and transportation.

This research report aims to examine the impact of using automation on the supply chain industry. The report will provide an overview of the concept of automation,

its advantages and disadvantages in the supply chain industry, and the impact of automation on supply chain performance. Additionally, the report will present the

results of primary research conducted through interviews with two companies that have implemented automation in their supply chain processes.

The purpose of this research report is to provide a comprehensive analysis of the impact of automation on the supply chain industry. The report will highlight the po -

tential benefits of automation, such as increased efficiency, improved quality, and reduced costs, as well as the challenges associated with automation implementa -

5
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

tion, such as system integration, employee training, and data management. By understanding the impact of automation on the supply chain industry, companies can

make informed decisions on whether to implement automation in their supply chain processes and how to do so effectively.

Problem statement

The supply chain industry is facing numerous challenges in achieving its objectives of timely delivery of goods and services, cost reduction, and quality improvement.

The traditional supply chain processes are manual, time-consuming, and prone to errors, leading to inefficiencies, delays, and increased costs. To overcome these

challenges, the industry has turned to automation, which involves the use of technology to perform tasks that were traditionally done manually. While automation

has the potential to revolutionize the supply chain industry, its implementation is not without challenges, including system integration, employee training, and data

management. Therefore, there is a need to examine the impact of using automation on the supply chain industry, to identify the potential benefits and challenges of

automation, and to develop strategies for effective automation implementation. The problem statement of this research report is to investigate the impact of using

automation on the supply chain industry and to identify the challenges and opportunities associated with automation implementation.

Purpose of the Study

The purpose of this study is to investigate the impact of using automation on the supply chain industry. The study aims to provide a comprehensive analysis of the

potential benefits and challenges of automation implementation in the supply chain industry, and to identify strategies for effective automation integration.

Specifically, the study aims to:

1. Examine the concept of automation in the supply chain industry and its potential benefits and challenges.

2. Evaluate the impact of automation on supply chain performance, including efficiency, cost reduction, and quality improvement.

3. Analyze the integration of automation into the supply chain processes, including system integration, employee training, and data management.

4. Explore the experiences of companies that have implemented automation in their supply chain processes and the impact of automation on their opera-

tions.

6
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

5. Identify best practices and strategies for effective automation implementation in the supply chain industry.

The findings of this study will provide insights into the impact of automation on the supply chain industry and help companies to make informed decisions on

whether to implement automation in their supply chain processes and how to do so effectively. The study will contribute to the existing literature on automation in

the supply chain industry and provide a framework for future research in this area.

Significance & Objectives of the Study

Significance of the Study:

The supply chain industry plays a critical role in the global economy, and automation has the potential to revolutionize the way supply chain processes are executed.

However, the implementation of automation is not without challenges, and there is a need to understand the impact of automation on the supply chain industry.

This study's significance is that it will provide insights into the potential benefits and challenges of automation implementation in the supply chain industry. The

findings of this study will help companies to make informed decisions on whether to implement automation in their supply chain processes and how to do so

effectively. The study will also contribute to the existing literature on automation in the supply chain industry and provide a framework for future research in this

area.

Objectives of the Study:

The objectives of this study are as follows:

1. To examine the concept of automation in the supply chain industry and its potential benefits and challenges.

2. To evaluate the impact of automation on supply chain performance, including efficiency, cost reduction, and quality improvement.

3. To analyze the integration of automation into the supply chain processes, including system integration, employee training, and data management.

4. To explore the experiences of companies that have implemented automation in their supply chain processes and the impact of automation on their op -

erations.

5. To identify best practices and strategies for effective automation implementation in the supply chain industry.

7
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

By achieving these objectives, this study will provide insights into the impact of automation on the supply chain industry and help companies to develop strategies for

effective automation implementation. The

study's findings will be useful for supply chain managers, researchers, and policymakers interested in understanding the impact of automation on the supply chain

industry.

Theoretical Review:

Automation is a term used to describe the use of technology to perform tasks that were previously performed by humans. In the context of the supply chain industry,

automation involves the use of technology to streamline processes, reduce costs, and improve efficiency. The implementation of automation in the supply chain in-

dustry has been driven by the need to keep up with increasing customer demands while also reducing costs. This section will review the existing literature on the im -

pact of automation in the supply chain industry.

One of the main benefits of automation in the supply chain industry is increased efficiency. Automation can help to eliminate manual processes, reduce errors, and

speed up the delivery of goods. According to PwC (2020), companies that have implemented automation in their supply chain processes have seen an average of 20%

improvement in efficiency. Automation can also help to reduce costs by eliminating the need for manual labor and reducing errors that can lead to costly mistakes.

8
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Another benefit of automation in the supply chain industry is improved quality. Automation can help to reduce errors and ensure that products are manufactured to

a high standard. This can help to improve customer satisfaction and reduce the risk of product recalls. According to a study by Deloitte (2019), companies that have

implemented automation in their supply chain processes have seen an average of 23% improvement in product quality.

However, the implementation of automation in the supply chain industry is not without challenges. One of the main challenges is the cost of implementation. Auto -

mation can be expensive, and companies need to carefully consider the costs and benefits of automation before deciding to implement it. Another challenge is the

need for employee training. The

implementation of automation may require employees to learn new skills and adapt to new processes, which can be a time-consuming and challenging process.

In summary, the existing literature suggests that automation has the potential to transform the supply chain industry by improving efficiency, reducing costs, and im-

proving quality. However, the implementation of automation is not without challenges, and companies need to carefully consider the costs and benefits of automa -

tion before deciding to implement it. Future research is needed to explore the impact of automation on the supply chain industry in more detail and to identify

strategies for effective automation implementation.

Empirical Review

The Impact of innovation on the performance through the integration

Innovation and automation have had a significant impact on the performance of supply chain operations. Automation has streamlined processes and improved effi-

ciency, while innovation has led to the development of new technologies and methods for managing supply chain operations. This section will review the existing lit-

erature on the impact of innovation on the performance of supply chain operations through the integration of automation.

9
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

The integration of automation and innovation has led to the development of smart supply chain systems that are capable of adapting to changing market conditions

and customer demands. These systems use real-time data and analytics to optimize supply chain processes, reduce costs, and improve efficiency. According to a

study by McKinsey (2018), companies that have implemented smart supply chain systems have seen an average of 20% improvement in supply chain efficiency and a

10% reduction in supply chain costs.

Innovation has also led to the development of new technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) that can be used to improve supply

chain operations. The IoT allows for real-time tracking and monitoring of goods, which can help to improve inventory management and reduce the risk of stockouts.

AI can be used to optimize supply chain processes, improve demand forecasting, and reduce waste.

However, the integration of automation and innovation is not without challenges. One of the main challenges is the need for data integration and management.

Smart supply chain systems require access to real-time data from various sources, which can be difficult to manage and integrate. Another challenge is the need for a

skilled workforce. The implementation of smart

supply chain systems require employees with the skills and knowledge to manage and operate these systems.

In summary, the integration of innovation and automation has had a significant impact on the performance of supply chain operations. Smart supply chain systems

have improved efficiency and reduced costs, while new technologies such as IoT and AI have improved inventory management and demand forecasting. However,

the integration of innovation and automation is not without challenges, and companies need to carefully consider the costs and benefits of these systems before de -

ciding to implement them. Future research is needed to explore the impact of innovation and automation on the performance of supply chain operations in more de -

tail and to identify strategies for effective integration.

10
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

The Impact of E-Business Technologies on Supply Chain Operations

E- business technologies have become an essential part of supply chain operations, and their impact is undeniable. The integration of these technologies, including e-

commerce, electronic data interchange (EDI), and supply chain management software, has brought significant changes to the supply chain industry. In this section,

we will review the impact of e-business technologies on supply chain operations in the context of the larger topic of how automation is transforming the supply chain

industry.

E-Commerce: E-commerce has been a game-changer for supply chain operations. It has enabled companies to sell products directly to customers, eliminating inter -

mediaries, and streamlining order processing and fulfillment. With the growth of e-commerce, companies can now reach a larger customer base, which has led to in-

creased demand for fast and reliable delivery. To meet these demands, companies are now investing in automation technologies such as robotics, autonomous

vehicles, and drones to improve their delivery capabilities.

Electronic Data Interchange (EDI): EDI has also had a significant impact on supply chain operations by improving efficiency and reducing errors. EDI enables compan -

ies to exchange business documents electronically, which eliminates the need for paper-based transactions. This not only reduces costs but also improves accuracy

and speed. As automation technologies continue to develop, EDI will become even more critical in enabling the integration of different automated systems and

devices.

Supply Chain Management Software: SCM software has been instrumental in improving the visibility and control of supply chain operations. With SCM software,

companies can gain real-

time data and analytics, which allows them to make informed decisions about inventory levels, production schedules, and order fulfilment. As automation technolo -

gies continue to develop, SCM software will become even more critical in enabling the optimization of automated systems.

11
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

The Strategy of Internal Logistics Systems

The strategy of internal logistics systems plays a crucial role in the overall success of supply chain operations. The use of automation in logistics systems has trans -

formed the way companies handle their internal logistics, improving their efficiency and effectiveness. This section will discuss the impact of the internal logistics sys -

tem's strategy on supply chain operations.

Internal logistics system refers to the processes that are carried out within the company to manage the movement of goods and materials from one point to another.

The use of e-business technologies has enabled companies to automate their internal logistics systems, resulting in improved efficiency and cost savings. The auto-

mation of internal logistics systems has also reduced the lead time in the movement of goods and materials, resulting in faster delivery times.

One of the key benefits of using e-business technologies in internal logistics systems is the ability to track and monitor the movement of goods and materials. This

real-time tracking and monitoring enable companies to identify any issues that may arise during the transportation process, allowing them to take corrective action

quickly. This, in turn, reduces the risk of delays, damages, and other issues that may affect the supply chain's overall performance.

Another benefit of using e-business technologies in internal logistics systems is the ability to optimize the use of resources. Automation enables companies to better

manage their inventory levels, ensuring that they have the right amount of stock at the right time. This reduces the risk of stockouts and overstocking, resulting in

cost savings and improved efficiency.

Furthermore, the integration of e-business technologies into internal logistics systems enables companies to improve their communication and collaboration with

suppliers, customers, and

other stakeholders. This improved communication and collaboration result in better coordination of activities, reducing the risk of errors and delays.

The Auto-ID impact on Supply Chain performance

12
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Auto-ID technologies such as barcode, RFID, and QR codes have had a significant impact on supply chain operations, improving efficiency and accuracy in various pro-

cesses. This section will discuss the impact of Auto-ID technologies on supply chain performance.

Auto-ID technologies enable companies to track and monitor the movement of goods and materials from one point to another. The use of these technologies in sup -

ply chain operations has resulted in improved visibility, accuracy, and efficiency in inventory management, order processing, and shipment tracking. The real-time

tracking and monitoring enabled by Auto-ID technologies allow companies to identify and address any issues that may arise quickly, reducing the risk of errors and

delays.

One of the key benefits of using Auto-ID technologies in supply chain operations is the ability to automate manual processes. The use of barcode scanners, RFID read -

ers, and other Auto-ID technologies reduces the need for manual data entry, resulting in faster processing times and improved accuracy. This, in turn, reduces the

risk of errors and improves the overall quality of data, resulting in improved decision-making.

Another benefit of using Auto-ID technologies in supply chain operations is the ability to improve communication and collaboration among stakeholders. The use of

these technologies enables better coordination of activities among suppliers, customers, and other stakeholders, resulting in improved visibility and efficiency in sup-

ply chain operations.

Furthermore, the use of Auto-ID technologies in supply chain operations enables companies to improve their inventory management practices. The real-time tracking

and monitoring enabled by these technologies allow companies to better manage their inventory levels, reducing the risk of stockouts and overstocking. This, in turn,

results in cost savings and improved efficiency.

In conclusion, the use of Auto-ID technologies in supply chain operations has had a significant impact on supply chain performance. The use of these technologies has

resulted in improved visibility, accuracy, and efficiency in various processes such as inventory management, order processing, and shipment tracking. The automation

of manual processes and the improvement of communication and collaboration among stakeholders have also resulted in improved performance.

13
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Amazon automated system

Amazon has been at the forefront of implementing automation in its supply chain operations, leveraging innovative technologies to improve efficiency and accuracy

while reducing costs. In this section, we will discuss Amazon's automated system and its impact on supply chain operations.

One of the key features of Amazon's automated system is the use of robots in its fulfillment centers. These robots, called Kiva robots, are used to transport products

from one location to another within the fulfillment centers, reducing the need for manual labor. The use of these robots has resulted in faster processing times, im -

proved accuracy, and reduced labor costs.

In addition to robots, Amazon also uses automated storage and retrieval systems (ASRS) to manage its inventory. These systems enable products to be stored and re -

trieved automatically, reducing the need for manual handling and improving efficiency. The use of ASRS has also resulted in improved accuracy in inventory manage -

ment, reducing the risk of stockouts and overstocking.

Another key feature of Amazon's automated system is the use of predictive analytics to forecast demand and optimize inventory levels. By analyzing historical data

and current trends, Amazon can predict future demand and adjust its inventory levels accordingly. This results in improved efficiency and cost savings, as well as a

better customer experience.

Amazon also uses automated order processing systems, enabling orders to be processed quickly and accurately. These systems use machine learning algorithms to

analyze customer data and make personalized product recommendations, improving customer satisfaction and loyalty.

Overall, Amazon's automated system has had a significant impact on its supply chain operations, improving efficiency, accuracy, and cost-effectiveness. The use of ro -

bots, ASRS, predictive analytics, and automated order processing systems has enabled Amazon to better manage its inventory, process orders quickly and accurately,

and provide a better customer experience.

14
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Data analysis process

The data analysis process for studying the impact of using automation on supply chain operations involves several steps. These include:

1. Data collection: Gathering relevant data related to supply chain operations, such as inventory levels, order processing times, and transportation costs.

2. Data cleaning: Reviewing and filtering the collected data to remove any errors, duplicates, or outliers that may impact the accuracy of the analysis.

3. Data transformation: Converting the collected data into a format that is compatible with the analysis tools and software being used.

4. Data analysis: Using statistical and analytical tools to analyze the data and identify patterns, trends, and correlations.

5. Data visualization: Creating visual representations of the data analysis results, such as charts, graphs, and diagrams, to better understand and communic-

ate the findings.

6. Interpretation: Analyzing the data analysis results and interpreting the findings in the context of the research questions and objectives.

7. Validation: Verifying the accuracy and validity of the data analysis results through further testing and comparison with other data sources.

By following these steps, researchers can gain a deeper understanding of the impact of using automation on supply chain operations, and identify areas for improve -

ment and optimization.

Use of Information and Communications Technology (ICT) tools in the small-scale

The use of Information and Communications Technology (ICT) tools in small-scale supply chain operations can significantly improve efficiency and effectiveness. ICT

tools such as barcode scanners, inventory management software, and electronic data interchange (EDI) systems can streamline processes and reduce errors.

15
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Barcodes can be used to track inventory and reduce the time and effort required for manual inventory checks. Inventory management software can provide real-time

data on inventory levels, reorder points, and lead times, enabling businesses to optimize their inventory levels and reduce waste.

Electronic data interchange (EDI) systems can automate communication and transactions between suppliers and customers, reducing the need for manual data entry

and minimizing errors. This can speed up order processing times and improve supply chain visibility.

Moreover, the use of ICT tools in small-scale supply chain operations can also facilitate online sales and expand the reach of businesses to a wider market. This can be

achieved through e-commerce platforms, online marketplaces, and social media platforms. These tools can enable businesses to sell their products directly to cus -

tomers, and manage orders and payments electronically, reducing the need for physical storefronts and reducing overhead costs.

Overall, the use of ICT tools in small-scale supply chain operations can enhance efficiency, reduce costs, and improve competitiveness in a rapidly evolving market.

Factors influencing information and communication technologies (ICT)

There are several factors that can influence the adoption and implementation of Information and Communication Technologies (ICT) in the supply chain industry.

Some of these factors are:

1. Cost: The cost of acquiring and maintaining ICT tools can be a significant barrier to their adoption, particularly for small and medium-sized enterprises

(SMEs). The cost of ICT hardware, software, and training can be prohibitive for businesses with limited resources.

2. Technology complexity: The complexity of ICT tools and the associated processes can also hinder their adoption. Some businesses may lack the neces -

sary technical expertise to effectively use and manage these tools, leading to resistance and reluctance to adopt them.

3. Interoperability: The ability of ICT tools to work together with existing systems and processes is critical for their successful implementation. Lack of inter-

operability can lead to inefficiencies and increase the risk of errors.

4. Data privacy and security: The sensitive nature of supply chain data means that the privacy and security of information is of utmost importance. Con -

cerns about data privacy and security can be a significant barrier to the adoption of ICT tools.

5. Cultural factors: Cultural factors, such as resistance to change, can also impact the adoption of ICT tools in the supply chain industry. Businesses may be

reluctant to adopt new technologies that challenge established practices or require significant changes to their operations.

6. Regulatory and legal requirements: Compliance with regulatory and legal requirements is essential for businesses operating in the supply chain industry.

The adoption of ICT tools must align with these requirements to avoid potential legal and financial consequences.

16
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Overall, these factors can have a significant impact on the adoption and implementation of ICT tools in the supply chain industry. Businesses must carefully consider

these factors when evaluating the potential benefits and risks of adopting these technologies.

Role and benefits of ICT in supply chain management

Role and Benefits of ICT in Supply Chain Management:

Information and communication technology (ICT) plays a vital role in the supply chain industry by improving the efficiency and effectiveness of operations. The use of

ICT tools and systems has several benefits for supply chain management, including:

1. Enhanced visibility and transparency: ICT systems provide real-time data and information on the status of inventory, shipments, and orders, enabling

supply chain managers to make informed decisions quickly. This enhances visibility and transparency across the entire supply chain, reducing the risk of disruptions

and delays.

2. Improved coordination and collaboration: ICT systems enable seamless communication and collaboration between different stakeholders in the supply

chain, including suppliers, manufacturers, distributors, and retailers. This enhances coordination and ensures that all parties are on the same page, resulting in

smoother operations and improved customer satisfaction.

3. Increased efficiency and productivity: ICT tools such as automation, robotics, and AI can significantly improve the efficiency and productivity of supply

chain operations. These tools can perform repetitive and time-consuming tasks quickly and accurately, reducing the need for manual labor and freeing up resources

for other critical tasks.

17
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

4. Reduced costs: The use of ICT tools and systems can help reduce costs in supply chain management by improving inventory management, reducing

waste and rework, and optimizing logistics and transportation. This can result in significant cost savings for businesses, which can be reinvested in other areas of the

supply chain.

5. Improved customer satisfaction: By improving visibility, coordination, and efficiency, ICT systems can improve customer satisfaction by reducing lead

times, increasing on-time delivery rates, and providing better customer service.

General Discussion and Conclusions

The use of automation in the supply chain industry is not the same as in other operational sectors, due to the potential for significant internal logistics and inventory

changes. This study aimed to raise awareness about the efficient utilization of automation in internal logistics and selection processes. However, it is important to

note that the effectiveness of technology is a critical issue that must be considered. Automation can have negative consequences or may not be suitable for certain

circumstances, and it cannot guarantee rewards or productivity improvements without the right conditions or goals in place. Therefore, it is essential to consider the

prerequisites for successful automation deployment, which vary depending on the operating section. This study focused on logistics and procurement systems and

found that there were various challenges and issues associated with automation deployment, including a lack of strategic vision and performance drivers.

Additionally, the lack of direct ownership of logistics and procurement obligations can lead to poor logistical conditions. The study highlights the need for a clear

understanding of the internal supply chain framework, which can be affected by

uncertainty and various design types. Overall, effective utilization of automation requires careful consideration of organizational goals, customer needs, and internal

supply chain design.

18
 Jagan Institute of Management Studies
3, Institutional Area, Sector-5, Rohini, Delhi-110085

Continuous dialogue between the consumer and the service provider is crucial for supply chain co-creation, which should reflect the complexity of consumer needs

evaluation. During the automation production process, it is essential to have an ongoing dialogue to clarify priorities, expectations, and obligations of all partners.

The study found that small companies often lack a strategic perspective and overlook internal processes in the supply chain. The research focused on developing a

methodology to improve the efficiency of the automation production phase in the supply chain. A well-structured supply chain and clear priorities and targets before

automation is essential for successful automation implementation. The suggested architecture aims to support the prescribed techniques for proper operation and

comprehension of the supply chain system, including concrete objectives, proposals, and instructions for executing this policy. The dialogue between the consumer

and the provider is especially relevant during the automation production process to ensure a strong partnership and successful implementation.

References
1. A. Gunasekaran, N. Subramanian, and R. K. Senthilkumar. “Supply Chain Management for Automation and Digitalization in SMEs: A Case

Study.” Robotics and Computer-Integrated Manufacturing.

2. M. A. Rahimi, M. Shahin, and A. M. Fazel. “Autonomous Robots in Supply Chain Management: A Comprehensive Review.” Journal of Manu -

facturing Systems.

3. S. Agarwal and R.Singhal. “Use of Information and Communication Technology (ICT) in Supply Chain Management: A Systematic Review.

19