Production, Supply, Logistics and Distribution

Abstract

To effectively manage a supply chain it is necessary to coordinate the flow of materials and information both within and among companies. This flow goes from suppliers to consumers, as it passes through manufacturers, wholesalers, and retailers. While materials and information move through the supply chain, automation is used in a variety of forms and levels as a way to raise productivity, enhance product quality, decrease labor costs, improve safety, and even to perform tasks that go beyond the precision and reliability of humans. A rapid development in information technology has transformed not only the way people work and interact with each other; electronic media enable enterprises to collaborate on their work and missions within each organization and with other independent enterprises, including suppliers and customers. Within this chapter, the focus is on the main benefits of automation in production, supply, logistics, and distribution environments. The first Section centers on machines and equipment automation for production. The second section focuses on computing/communication automation for planning and operations decisions. Finally, the last section highlights some considerations regarding economics, productivity, and flexibility important to bear in mind while designing an automation strategy.