"What is happening with automation and globalization, that's not going away," says Campbell Brown. And she's right. Supply chains handle everything from the water bottle you buy in a store to the laptop in your shoulder bag. Every single product touches dozens of hands, crosses multiple borders, and passes through countless systems. Robotics in supply chain is becoming a part of it, and with the market set to reach $13.39 billion by 2030, this part is only growing.
This article walks you through the essence of RPA and explains how it differs from the automation you might already know. You'll see examples of companies getting real wins with RPA and learn everything you need to pick the right tools, get them up and running, and figure out if the investment pays off.
What is RPA?
RPA (robotic process automation) is a technology that employs bots (software imitating human actions) to simplify and speed up repetitive processes in digital environments, taking the load off humans. They perform rule-based tasks by mimicking human interactions with computer systems, clicking buttons, filling forms, copying data, and moving information between applications like a person would. They work through user interfaces, not code integrations.
Put simply, RPA turns tedious manual work into automated workflows. For instance, robotics process automation in procurement might mean a bot that reads purchase orders from emails, enters them into your ERP system, checks inventory levels, and sends confirmation messages to suppliers without human intervention. The bot follows the same steps a procurement specialist would, but does it in minutes instead of hours.
Many people are confused about the difference between robotic automation and other types of automation, especially the intelligent one. Let’s clarify it.
Differences between RPA and traditional automation
How does robotic process automation differ from intelligent automation? "One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man," said Elbert Hubbard. This quote captures what RPA is all about: pure repetition and mimicking without creativity or complex thinking.
There are some major differences between these two:
- Depth. RPA works at the surface level, clicking and typing through applications, following a human example. Traditional automation goes deeper, connecting systems through APIs and backend integrations.
- Data handling. RPA bots log into your inventory system, navigate through screens, and copy data manually. Traditional automation pulls that same data directly from databases using programmed connections.
- Adaptability. When systems change, RPA adapts quickly through simple interface adjustments. Meanwhile, traditional automation often requires developers to rewrite code and rebuild integrations.
- Deployment speed. RPA gets deployed in weeks with drag-and-drop tools, while traditional automation can take months of programming and testing.
- Complexity. RPA handles the routine stuff that follows clear rules and patterns. On the contrary, traditional automation tackles complex processes that need deep system integration and sophisticated logic.
- Workflow impact. RPA mimics human actions within existing workflows; traditional automation redesigns entire processes. Business process automation vs robotic process automation shows this divide clearly, as one rebuilds entire workflows while the other just mimics human actions within existing ones.
- Cognitive scope. While intelligent process automation brings AI, data analytics, and decision-making into the mix, RPA sticks to simple, straightforward task execution.
Now that we drafted the picture, let's see how this plays out in real supply chain operations.
How RPA works in the supply chain
According to Statista, 60% of companies worldwide expect robotic process automation to transform supply chains by 2025. RPA in supply chain management works by deploying software bots that handle the grunt work across every stage of the supply chain process.
- The supply chain typically begins with order processing, and it’s the first stage where we utilize RPA in logistics. At this stage, bots receive orders, check inventory, and generate shipping documents. They cross-reference customer details, update inventory systems, and trigger the next steps.
- In inventory management, bots monitor stock levels across multiple locations. They generate purchase orders when items hit reorder points, update inventory databases, and sync information across systems.
- Across warehouse operations, supply chain RPA bots manage receiving schedules, picking lists, and shipping confirmations.
- Throughout supplier relationships, bots handle contract renewals, processing invoices, and tracking metrics. They extract data from supplier messages, update vendor databases, and flag any issues that need attention. Bots also manage the paperwork for cross-border shipments, handling customs forms and compliance documentation.
- For customer service, RPA handles order status inquiries, shipping updates, and return processes, creating responses, and escalating complex issues to human agents.
We will describe the specific cases when RPA in supply chain management is your best option to use, but for now, let’s focus on some benefits you get with it.
