Technology
The Future of Supply Chain Automation
The Future of Supply Chain Automation
As Amazon continues to set the bar for efficiency by integrating an astounding spectrum of automation technology, it’s becoming increasingly apparent that traditional supply chain models are ripe for disruption.
For this reason, companies around the world are now rethinking their warehouse and distribution systems, with automation taking center stage.
Today’s infographic from Raconteur highlights the state of automation across global supply chains, while also providing an outlook for future investment.
Long Time Coming
Let’s start by taking a look at what supply chain technologies are priorities for global industry investment in the first place:
Rank | Technology | % of Companies* Investing in Tech |
---|---|---|
#1 | Warehouse automation | 55% |
#2 | Predictive analytics | 47% |
#3 | Internet of things | 41% |
#4 | Cloud logistics | 40% |
#5 | Artificial intelligence | 28% |
#6 | Blockchain | 22% |
#7 | Autonomous vehicles | 16% |
#8 | Machine-learning | 16% |
#9 | Fulfillment robots | 11% |
#10 | 3D printing | 10% |
#11 | Augmented reality | 7% |
#12 | Drones | 7% |
#13 | Crowd-sourced delivery | 6% |
#14 | Virtual reality and digital twins | 6% |
#15 | Delivery robots | 4% |
*Based on survey of supply chain professionals in retail, manufacturing, and logistics fields
As seen above, warehouse automation has already received more investment (55%) than any other supply chain technology on the list, as companies aim to cut delivery times and improve overall margins.
Interestingly, other areas receiving significant investment—such as predictive analytics, internet of things, or artificial intelligence—are technologies that could integrate well into the optimization of supply chain automation as well.
Smoothing the Transition
While fully automated supply chains in most industries may still be a few years away, here is how companies are investing in an automated future today:
Timeline For Acquiring New Automation Tech | % of Warehouse Managers Surveyed |
---|---|
Already have | 23% |
Have, looking to upgrade | 8% |
Within 12 months | 10% |
One to three years | 21% |
Three to five years | 8% |
Over five years | 3% |
Not looking | 26% |
According to the above data, over 70% have already integrated automation technology, or are planning to within the next five years. On the flip side, over a quarter of warehouse managers are not currently looking to integrate any new automation tech into their operations at all.
Adoption Rates and Growth
As supply chain automation gains momentum and industry acceptance, individual processes will have varying adoption rates.
Take order fulfillment, for instance. Here, only 4% of current operations are highly automated according to a recent survey from Peerless Research Group:
Order Fulfillment Operations (Picking and Packaging) | Percentage of Respondents |
---|---|
Highly automated | 4% |
A mix of automated and manual processes | 42% |
Mostly or all manual | 49% |
Not applicable | 5% |
Meanwhile, 49% of operations were primarily manual, illustrating potential for growth in this particular area.
It’s worth noting that other individual supply chain components, such as conveyor belts, storage, automated guided vehicles, and shuttle systems, will all have differing trajectories for automation and growth.
Post-COVID Supply Chains
The COVID-19 pandemic has shown us that complex supply chains can become fragile under the right circumstances.
As supply chains see increased rates of automation and data collection becomes more integrated into these processes, it’s possible that future risks embedded in these systems could be mitigated.
Technology
Mapped: Internet Download Speeds by Region
North America and East Asia have the speediest internet.
Mapped: Internet Download Speeds by Region
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
In today’s fast-paced world, internet speed isn’t just a convenience—it’s the driving force behind how we work, play, and connect.
In this map, we illustrate median download speeds in each global region, based on data from the World Bank’s Digital Progress and Trends Report 2023.
North America and East Asia Have the Speediest Internet
According to the World Bank, download speeds in high-income countries increased significantly between 2019 and 2023, while speeds in lower-income countries stagnated.
As of 2022, North America and East Asia have the speediest internet.
Region | Median mobile download speed (Mb/sec) | Median fixed broadband download speed (Mb/sec) |
---|---|---|
East Asia & Pacific | 90 | 171 |
Europe & Central Asia | 44 | 85 |
Latin America & the Caribbean | 26 | 74 |
Middle East & North Africa | 36 | 36 |
North America | 83 | 193 |
South Asia | 27 | 43 |
Sub-Saharan Africa | 16 | 15 |
This difference in broadband speeds can mainly be attributed to investment.
In 2020, nearly 90% of global telecommunication investment came from East Asia and the Pacific, Europe and Central Asia, and North America. These regions not only concentrate the highest-income population but also the top technology hubs.
Meanwhile, low- and middle-income regions such as Latin America and the Caribbean, South Asia, and Sub-Saharan Africa accounted for less than 10% of total investment.
Most of the investment is directed towards fiber optic and 5G mobile networks. According to the mobile industry association GSMA, mobile operators alone are projected to invest more than $600 billion between 2022 and 2025, with 85% of the total allocated for 5G.
In 2023, broadband speeds in high-income countries were 10x faster for fixed connections, and 5x faster for mobile connections compared to those in low-income countries.
Fixed broadband connections, which provide high-speed internet to residences or businesses, reached 38% of the population in high-income countries. In comparison, fixed broadband penetration was only 4% of the population in lower-middle-income countries and almost zero in low-income countries.
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