Reference no: EM133412251

RPA in Supply Chain

Robotic process automation (RPA) is becoming an increasingly relevant part of the supply chain planning and control landscape. This technology has the potential to simplify mundane tasks associated with procurement processes, thereby freeing up human resources for complex decision-making areas. A recent multiple case study by Christian Flechsig, Franziska Anslinger, and Rainer Lasch explores these potentials through a deep dive into the barriers faced in RPA implementation.
The study was conducted in two distinct stages over three years, involving nine companies from different industries across Europe. In the first stage of their research, Flechsig et al. identified key success factors such as comprehensive governance structures and cross-functional integration of RPA plans. In addition to this, they uncovered numerous risks such as inaccurate data input or inadequate training of personnel assigned to manage automated system components. The second stage of their research focused on examining how companies overcame challenges posed by RPA implementation in their organization. Results indicated that firms were able to successfully integrate robotic process automation into their operations by implementing appropriate risk mitigation strategies such as pre-testing network connection stability or hiring separate teams with expertise in both IT and operational processes.
In the private sector, RPA can be used to speed up mundane tasks such as data entry and inventory management, freeing up valuable time for employees to focus on higher value activities. Additionally, automated processes can help ensure accuracy by reducing human errors common in manual data entry or document processing. And, since RPA eliminates the need for manual labor for certain tasks, it also reduces costs associated with labor expenses.
In the public sector, RPA can be used to streamline existing bureaucratic processes such as filing paperwork or managing contracts. By automating these processes, government agencies can save considerable amounts of time and money while ensuring accuracy within their operations. Furthermore, given that government processes are often highly regulated and require a large number of documents to be stored securely over time, RPA can help reduce this complexity by removing much of the manual labor associated with it.
This study has important implications for supply chain management professionals who are looking to leverage RPA to improve the efficiency of their procurement processes. It provides valuable insights into which challenges can be expected along the way and outlines best practices for successful implementation and maintenance of robotic process automation tools within purchasing departments. Going forward, it is essential that organizations assess the risks associated with introducing this technology carefully before moving ahead with widespread adoption across the enterprise.
From a research standpoint there is still much to learn about how best to utilize robotics process automation in purchasing and supply management systems - both in terms of implementation strategies and overall effectiveness - as there are still many unanswered questions regarding performance outcomes related to this technology. Specifically, more research is needed around how best to integrate automated systems into existing purchasing and supply management operations without disrupting workflows or increasing operational risk. Additionally more research should be conducted around the potential cost savings that could be achieved through utilization of RPA technology in order to better understand potential financial benefits associated with implementation efforts.

References
Christian Flechsig, F. A. (2022). Robotic Process Automation in purchasing and supply management: A multiple case study on potentials, barriers, and implementation. Journal of Purchasing and Supply Management.

Questions:

1. Have you been employed, or currently employed, by a company that utilizes RPA in their processes? If not, can you think of a company that uses RPA?

2. What are possible barriers or shortfalls or implementing RPA for supply chain planning or control?