Robotic Process Automation (RPA)

What is Robotic Process Automation (RPA) exactly?

Robotic Process Automation (RPA), German robotic process automation, is a technology that uses software robots, also known as "bots," to mimic human interactions with digital systems. These bots can log in to applications, extract and enter data from various sources, edit emails, and generate reports. At its core, the aim is to automate structured, repetitive and rule-based tasks that were previously done by employees on the computer.

Unlike physical robots that move goods in a warehouse, RPA bots operate solely on the user interface of software systems. They mimic mouse clicks and keystrokes and follow predefined workflows to connect processes across different applications without the need to code complex and expensive interfaces (APIs).

What is the difference to classic automation?

The demarcation is crucial for understanding. Traditional IT automation, such as enterprise resource planning (ERP) systems, often requires in-depth programming knowledge and code-level integration. Changes are usually time-consuming and cost-intensive.

RPA, on the other hand, starts at a higher level, the graphical user interface (GUI). This has two decisive advantages:

1. Speed and flexibility: RPA solutions can often be implemented in weeks instead of months. The bots interact with existing systems "as they are", which makes time-consuming adaptation of the IT infrastructure superfluous.
2. Fewer technical hurdles: Many RPA platforms offer low-code or no-code environments. This means that even business users from the operational departments (so-called "citizen developers") can create and adapt simple automations themselves after appropriate training.

Question: Does RPA require replacing our existing systems such as the WMS or TMS?

Answer: No, and that's one of the biggest advantages. RPA bots work with your existing systems by operating the user interfaces just like a human employee. It is not necessary to replace the core systems.

RPA in warehouse logistics: More than just data entry

Warehouse logistics involves countless administrative processes that are ideally suited for automation through RPA. The potential goes far beyond the mere increase in efficiency and affects the entire process chain.

Some specific use cases:

• Notification and collection: Bots can automatically read emails from suppliers, create ASNs in the Warehouse Management System (WMS) and send notifications in the event of deviations. This significantly speeds up the goods receipt process.
• Inventory reconciliation: Regular, manual reconciliations between the WMS and the customer's ERP system are error-prone and time-consuming. A bot can perform this task on a daily or even hourly basis, identifying differences and generating standardized reports.
• Reporting and KPI creation: The manual collection of data from different systems (e.g. WMS, workforce planning, freight management system) to create daily, weekly or monthly reports can be fully automated. Employees can use the time freed up to analyze the data and derive measures.
• Invoice verification: RPA can reconcile incoming freight invoices with the shipment data stored in the Transport Management System (TMS) and agreed tariffs. If there is a match, the invoice is released for payment, and if there are discrepancies, it is marked for manual review. Studies show that automation rates of up to 80% are possible here.

How does contract logistics benefit from RPA?

Contract logistics is characterized by customer-specific processes and high demands on service and reporting. This is exactly where RPA can play to its strengths by enabling the necessary flexibility with a high level of standardization.

Question: Our customers all have different requirements for reports and data formats. Can RPA handle this?

Answer: Yes, absolutely. A specific bot can be configured for each customer, which extracts the data from your systems according to their individual requirements, prepares it (e.g. converts it to Excel or PDF) and automatically sends it to the right contact person. This increases the quality of service and binds the customer more closely to your company.

Further potential in contract logistics:

• Onboarding new customers: The creation of master data, the configuration of logic in the WMS or the establishment of customer portals are often standardized processes that a bot can take over quickly and without errors.
• Management of value-added services: The documentation and billing of additional services (e.g. labeling, packaging) can be automated by RPA by bringing together the relevant information from different sources and preparing it for invoicing.
• Communication with partners: RPA can automate communication with carriers, for example by making time slot bookings, generating freight documents or querying the shipment status in various portals and consolidating it in its own system.

RPA and the logistics property: Rethinking administration

In the management of logistics properties and large hall complexes, there are also numerous administrative tasks that are suitable for automation. The focus here is on recurring management and monitoring processes.

• Utility billing: A bot can retrieve consumption data (electricity, water, gas) from various meters or portals of the suppliers, assign it to the individual tenants in the hall according to the distribution key and prepare the bills.
• Contract management: RPA can monitor expiring lease deadlines or maintenance intervals and automatically send notifications to the appropriate employees.
• Damage and defect reports: Incoming reports via email or via a portal can be pre-qualified by a bot, created in the facility management system and assigned to the right service provider depending on the urgency and type of damage.

What are the hurdles and how does the introduction succeed?

Despite the enormous potential, the introduction of RPA is not a foregone conclusion. A realistic view of the challenges is crucial for success.

Question: What are the best processes to start with?

Answer: Start with processes that  have a high frequency, low complexity,  and clear rule-basedness. An ideal starting point is often a process that frustrates employees, is error-prone, and has a clear business case. A "quick win" motivates the team and creates acceptance for further projects.

Typical hurdles:

• Process quality: RPA automates a process as it is. A bad, inefficient process does not automatically become good through automation. Before the introduction, the processes must be analyzed and standardized.
• IT security and governance: Bots access sensitive data and systems. Clear guidelines for permissions, monitoring, and managing the bots are essential.
• Change management: Employees often fear that their jobs will be rationalized away. Open communication is key: RPA is designed to relieve employees of monotonous tasks so that they can focus on more complex, value-adding activities. It is about shifting tasks, not necessarily about reducing staff.

A successful implementation often follows a structured approach: identifying (finding suitable processes), analyzing & standardizing, automating (developing the bot), testing,  and finally implementing & monitoring. The involvement of the specialist departments from the very beginning is the key to success.