As robotic process automation in logistics becomes more popular, some experts are left wondering if their return on investment (ROI) is worth the money they pour into yet another software service. Logistics management needs to determine the use of the RPA and whether the long-term benefits outweigh the short-term costs. ROI means significant improvement with the ability to process shipments faster and eliminate those tedious, time-consuming tasks. The use of robotic process automation in logistics enables logistics companies to save money in the long term and remain competitive in an ever-growing market.
Why There’s Interest in the ROI of RPA and What it Means for Supply Chain Logistics Experts
When logistics managers budget for automation, they should consider implementing RPA to automate time-consuming tasks such as spot quoting. Robotic process automation in logistics proves there is a better way to perform daily functions and achieve organization. It allows agencies to pursue more efficient avenues and perform tasks much faster. The key is to deploy these uses in the most critical areas of the supply chain to harness the power of process robotics and mitigate the routine activities, according to Deloitte. For instance, mundane tasks, like reviewing emails for shipment status inquiries, can be automated through the use of RPA to save back-office expenses.The ROI of RPA means supply chain logistics experts can focus on what matters most instead of wasting time on processes that can be automated. Time is money, after all.
The ROI Is Significant and How Do Logisticians Measure It
Logistics experts know the ROI of RPA holds significant value. Automations for freight forwarders and other areas of the supply chain can make a huge difference but at what cost? Logisticians must determine whether the value of the software is worth the money they invest. It takes a lot of measuring and research to determine this value. Essentially, the cost of automation is how it measures up to the hours spent on performing the process manually and the costs of actual labor for doing the actions. Typical ROI payback is between six and nine months, anything longer than that is not worth the investment. Additionally, McKinsey & Company found an ROI range that varies between 30 and as much as 200 percent in the first year in 2017, but additional, proprietary studies commissioned by RPA vendors have found ROI rates of well above 300%. Ultimately, the key to calculating a comprehensive ROI is to think about the total labor costs and processing costs associated with each activity automated through RPA and determining how those costs compare to total costs after implementing such a system across all resources, including your systems of record, email and even chat platforms.
Factors Affecting the Variety of ROI Figures
The question, though, is how do they measure it and what factors go into measuring it? The use of software bots automates everyday processes but what does that entail? Essentially, robotic process automation in logistics needs features that add enough tangible value for logisticians. The process should be rule-based and clearly defined. Too many steps or vague solutions will not help customers or employees. Next, does this take too much time? If the process takes the same amount of time as manual input, it would not be worth it to invest. And finally, does it have readable inputs? The platform needs to be user-friendly, especially for customers who do not know the supply chain.
Get The Most Bang For Your Buck and Invest in Robotic Process Automation in Logistics Today
Robotic process automation in logistics is transforming transportation and logistics. The best investment experts can make is in their technology platform. Get rid of those extra hours of labor. Service and customer satisfaction will grow as team members focus on the work and not the “swivel-chair” practices. This also boosts productivity as more hours are spent on what matters and less time performing routine, daily tasks. Get the most bang for your buck and invest in RPA today. Book a demo with RPA Labs to get started today.