Navigating the Automation Wave

As industries evolve amidst technological advancements and changing market dynamics, the imperative to enhance productivity and efficiency has never been more pressing. A recent panel discussion, during FM Logistic’s inauguration of the state-of-the-art warehouse in Bhiwandi, Mumbai, delved into the challenges and opportunities surrounding automation in the context of Indian businesses, shedding light on the diverse perspectives shaping this transformative journey.

FM Logistic India, one of the leading French contract logistics providers, inaugurated its 3rd state-of-the-art multi-client facility (MCF) in India’s largest logistics hub of Bhiwandi on Thursday in the presence of its customers and partners. This new facility reinforces its commitment to delivering world-class sustainable omni-channel solutions to customers in various industries.

Gautam Dembla, Chairman, FM Logistic India, emphasised the heightened expectations for prompt product delivery driven by the country's economic growth and infrastructure investments. Demla, who was also the moderator, said, “Customers now anticipate service levels akin to e-commerce platforms, presenting a challenge for businesses to meet these demands efficiently. Government initiatives facilitating value-added services like co-packing have revolutionized warehouse capabilities, raising the question of how automation can optimize operations to address evolving customer needs.”

Florence Petit, Country Head, Supply Chain Management, Legrand, echoed these sentiments, highlighting challenges such as high reliance on manual labor and frequent errors in tasks like unit picking. Transitioning to new facilities exacerbates these issues, impacting operational efficiency and customer satisfaction. Automation offers a solution to improve accuracy and efficiency, particularly in tasks like loading and unloading, which are prone to delays and revenue loss.

Sandeep Bansal, Chief Business Officer, Falcon Autotech, outlined four key trends influencing automation adoption: rising labour costs, increasing rents, heightened consumer expectations, and competitive pressures. Strategic adoption of automation is essential to enhance operational resilience and meet customer demands, with varying perspectives among companies based on their maturity as automation buyers.

Vinayak Bhat, General Manager, Bastian Solutions, emphasised the need for automation in FMCG operations to maintain efficiency amidst labour shortages and fluctuating consumer behaviors. He added, “Starting with smaller, manageable automation projects builds confidence and facilitates broader adoption, allowing businesses to reap long-term benefits while freeing up manpower for value-added tasks.”

Balaji Reddipalli, Group Head – Supply Chain, Borosil, echoed the sentiment, emphasising the gradual embrace of automation by Indian businesses. Patience and incremental implementation is the key to successful adoption, allowing organisations to address specific pain points and add value while balancing cost considerations.

Loic Delaitre, Group Automation Director, FM Logistic, emphasised the importance of considering broader strategies and aligning automation initiatives with customer visions and long-term goals. Automation should be viewed as enhancing processes rather than replacing human effort, with a focus on solving problems and adding value to the business.

The transition towards automation in Indian businesses is driven by the need to enhance efficiency, meet evolving customer expectations, and maintain competitiveness. Starting with manageable projects and embracing incremental implementation are crucial steps towards achieving long-term operational excellence and business growth in a rapidly changing market landscape.