Variable market conditions and a continuously shrinking workforce have drastically crippled supply chains in recent years. Most operations are still heavily reliant on labor-intensive technology from the last century, but as the labor pool shows no signs of improvement – it’s clear that companies can no longer just throw bodies at their warehouse and factory bottlenecks. The labor just isn’t there, hiring cycles are too long, and wages and bonuses continue to skyrocket. To stay competitive and profitable, business leaders are turning towards automation.

There are many benefits for companies that deploy flexible automation solutions. At its core, automation reconfigures and executes specific tasks and processes to supplement labor in warehouse and factory environments. However, flexible robotics goes beyond addressing critical vacancies. Companies that deploy automation solutions become more efficient in their operations through their material handling or order fulfillment tasks. Longer operating hours and the redistribution of workers to higher value tasks offers even higher productivity outcomes, improved throughput, and critical adaptability.

Automation is the only viable option for companies looking to address labor shortages and optimize operations during times of peak demand.

However, before companies can explore different technology options, they need to understand the key reasons why automation is the answer to their problems. Read “Robots to the Rescue: How Material Handling Battles Persistent Labor Shortages” to find out how automation can overcome labor shortages within factories and warehouses, and to discover the best strategy for your automation transformation.

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Source: https://www.supplychainbrain.com/articles/36688-the-5-catalyst-for-automation-transformation-in-manufacturing-and-distribution-topic-1-labor-shortage