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The risk of not having automation

Oct 16, 2024

The risk of not having automation in eCommerce, 3PL, factories and fulfilment centres

Companies are under immense pressure to deliver goods swiftly, accurately, and cost-effectively. The growing expectations for next-day delivery and real-time tracking, combined with fluctuating consumer demand, make it vital for businesses in ecommerce, third-party logistics (3PL), and fulfilment sectors to operate efficiently. Yet, many companies still rely on manual processes, which can create significant operational risks. At CSL Automation, we understand the importance of investing in automation to ensure smooth, reliable, and scalable operations. Below, we explore the dangers of not embracing automation.

 

  1. Manual handling risks

Manual handling remains one of the most prevalent risks in non-automated environments. Employees are required to lift, carry, or move goods—often repetitively. This leads to increased risks of injury, especially musculoskeletal disorders. Injured workers mean downtime, higher insurance premiums, and disrupted workflows. By automating tasks companies can reduce health and safety incidents, ensuring a safer and more efficient workplace.

 

  1. Slower throughput

In a non-automated setting, human speed is the limiting factor. Relying solely on manual processes slows down order processing, particularly when demand spikes. A manual system cannot ramp up its capacity in line with growing or seasonal demand, leading to bottlenecks and delays. Automated systems, in contrast, can work continuously, ensuring consistent throughput and the flexibility to scale operations when necessary. In today’s competitive market, slow throughput can result in missed deadlines, unsatisfied customers, and damage to your brand or reputation.

 

  1. Inaccurate picking and sortation

Without automation, the risk of human error significantly increases. Manual/un-aided picking and sortation can lead to incorrect items being dispatched, delays in order fulfilment, or even lost items. This impacts not only the company’s reputation but also its bottom line, as more resources are used to fix errors. Automation improves accuracy with technologies such as robotic picking systems, automated sortation systems, verification by weight and barcode scanning. These solutions ensure that the right product is delivered to the right customer every time.

 

  1. Labour-related challenges

Labour in warehouse environments can be both expensive and unpredictable. The cost of hiring, training, and retaining staff can be high, and many businesses face challenges with workforce availability or high turnover of staff, especially during peak season.  As humans we are prone to fatigue, increasing the likelihood of mistakes and injuries. Automation provides a reliable, scalable alternative to human labour, reducing dependency on fluctuating labour markets and the associated costs. With automated systems, tasks are completed with consistency, speed, and precision—without the risks of human error

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  1. Letting customers down

One of the biggest risks for businesses that fail to adopt automation is not meeting customer expectations. With the rise of ecommerce giants and the demand for same-day or next-day delivery, customers expect fast, accurate, and reliable service. Delays, wrong orders, or damaged goods can result in negative reviews, lost customers, and diminished brand loyalty. Automation ensures that companies can meet—and exceed—customer expectations with streamlined processes, real-time tracking, and timely order fulfilment.

 

  1. Limited scalability

Manual operations severely limit a company’s ability to scale. As demand increases, the need for more workers, space, and manual processes grows. Scaling up without automation is not only inefficient but also cost-prohibitive in the long run. Automated systems are designed for scalability, allowing businesses to expand their operations without proportionately increasing costs. Whether handling peak season surges or growing customer bases, automation ensures a seamless scaling process that keeps operations efficient.

 

  1. Data and process transparency

If your current processes rely on paper-based or outdated digital records, it can limit your visibility into the operational process. This lack of real-time data can prevent you from spotting inefficiencies, predicting demand fluctuations, or responding quickly to issues. Automation systems provide end-to-end transparency, allowing businesses to monitor every aspect of their operations in real time. This transparency leads to better decision-making, improved resource management, and the ability to forecast more accurately.

 

  1. Losing competitive advantage

It’s important not to fall behind with your competition. If your competitors offer enhanced delivery services or product returns, you and more importantly your customers may be missing out. The benefit of automation is that you can increase throughput and ensure that your customers get their order as quickly as possible. Those businesses with automation can also reduce their overheads and streamline their processes making them incredibly efficient.

Happy customers become advocates of your brand, order from you again and tell others of their experience with you. With automation you won’t get left behind.

 

The risks of not implementing automation in eCommerce, 3PL, and fulfilment centres are significant. From slow throughput and human error to high labour costs and scalability challenges, manual operations simply cannot keep up with the demands of the modern market. Investing in automation ensures not only operational efficiency but also safety, reliability, and customer satisfaction. At CSL Automation, we specialise in providing tailored automation solutions that help businesses mitigate these risks and thrive in an increasingly competitive landscape.

 

For more information on how CSL Automation can help automate your processes, contact us at [email protected] or call us on 01283 55 22 55. Let us help you stay ahead by transforming your operations with the latest in automation technology.

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