Uncorking Automation Bottlenecks - Inbound Logistics

Logistics I.T., Labor Management, Technology Although 57% of organizations say they're piloting automation processes and 93% of employees are optimistic automation will make their jobs easier, digital transformation efforts often fall apart, according to a new McKinsey survey.Many companies rely on IT to drive transformation without engaging other departments, creating bottlenecks. Company size and the structure of automation efforts are key differentiators, according to McKinsey. Leadership Perspectives Most organizations surveyed take a centralized approach to automation. However, those using distributed implementation strategies are most likely to consider their automation efforts as significantly ahead of industry peers. Most automation leaders (69%) say automation and digital transformation initiatives delivered higher returns than expected, regardless of how their companies opt to structure the journey. Leaders at smaller companies are more likely to rank their organizations as significantly ahead of industry peers in adopting new technology. A majority of leaders (79%) feel confident in their organization's automation efforts, characterizing them as "intermediate" or "advanced." The C-suite is more likely than managers to characterize automation efforts as "pro," which may result from being removed from front-line challenges.Common Roadblocks The majority (89%) of managers and higher-ups surveyed say they're plugged into process automation decision-making at their company; however, only 41% of managers say they are extremely influential in decision-making, indicating there could be more room to involve front-line employees in the process. Fewer than one-third of respondents characterize their department's staff as "extremely skilled" when it comes to "seamlessly adopting automation-driven solutions." About 96% of IT teams say they're confident they can achieve the company's automation goals, and most business leaders are optimistic that automation has the potential to make their jobs easier. However, 47% of IT respondents rate IT bottlenecks and delivery time frames as extreme challenges.