TM Insight is tipping automation

Australian supply chain professionals are being urged to prepare for more automation in the year ahead.

Specialist supply chain, property, and project services consultancy firm TM Insight notes that 2017 will be remembered as the year where the proliferation and adoption of automation reached a tipping point, with momentum only set to continue.

The consultancy's latest analysis suggests that automated distribution centres "need to be treated as a symbiotic ecosystem between business operations, building and automated systems".

"You cannot make an informed decision on what system drives the most optimum outcome without the support of a team with experience in developing relevant business strategy, operations, property development, constructability and supply chain. A narrow, singular focus on real estate cannot hope to provide clients with what they need for future success.

"Obviously, labour costs in Australia are higher than many other developed countries and have a significant impact on business cases, but by no means is this the only reason for companies to make decisions to automate parts or all of their operations."

TM Insight observes that there have been some hard lessons learned in recent times by the risks associated with trying to implement a generic process that may have worked in the US or Europe, without enough consideration for local market conditions.