Technologies to Adopt Now to Enable the Smart Warehouse Concept

Article | April 16, 2020

We get a lot of questions from manufacturers around the difference between the edge and the cloud. Edge and cloud computing are often misunderstood to be mutually exclusive but, while they may function in different ways, leveraging one does not preclude the use of the other. In fact, they actually complement one another quite well. For manufacturing, the goal of edge computing is to process and analyze data near a machine that needs to quickly act on that data in a time-sensitive manner. It needs to make a decision right now with no delay.

Article | August 20, 2020

There is a saying that “the only constant in life is change.” While change for some industries can be intimidating and unwanted, it is safe to say that the digital landscape for manufacturers is constantly changing, and it is no longer an option to ignore the disruption. The impetus for manufacturing companies to digitally transform seems to be increasing at a rapid pace. Research from IDC cites global spending on digital transformation technologies and services is forecasted to grow 10.4 percent in 2020, to $1.3 trillion. In 2020, the disruption of COVID-19 has expedited change for a lot of organizations, as many were under prepared for the massive workforce shift.

Procurement & Supply Chain

Article | February 3, 2022

Inventory management in warehouse is a never-ending cycle till the time the business is in operation. As your business expands, so does the amount of effort and money spent on warehouse inventory management. After all, the more orders you receive, the more time you'll need to spend on inventory replenishment and warehouse organization. Fortunately, there are several methods to enhance the warehouse inventory management process, from more efficient storage to the use of automation and other solutions that can minimize manual labor, human error, and total expenses. In this article, we will look at some of the key challenges that manufacturers face while managing their warehouse inventory and their solutions. Furthermore, we see the best practices for optimizing your warehouse inventory management that would ultimately enhance the efficiency of business operations. Warehousing and Inventory Management Best Practices Appoint a Warehouse Supervisor Managing an effective warehouse begins with hiring a qualified manager. Your organization should choose a warehouse manager with substantial expertise in operating a warehouse comparable to the one you will be operating. A skilled warehouse manager ensures that everything runs smoothly. He/she must be organized, knowledgeable about warehouse operations and technology, and function as a quarterback for the warehouse's rest of the team. Your warehouse manager will monitor your staff to ensure things are correctly scanned and cataloged. Additionally, they will frequently engage with your warehouse inventory management software to keep a bird's eye perspective on your goods. Finally, your warehouse manager will be responsible for handling any inconsistencies or challenges that develop, so that they respond dynamically anytime your warehouse staff discovers a problem. Some attributes to look out for in your warehouse manager are: organizational ability, precision, tech-savvy, safety-mindedness, leadership, integrity, and a sense of calm. Plan the Warehouse Layout The structural layout of your warehouse will either assist or limit your warehouse workers' ability to promptly pick, load, and send items out in response to a sale or transfer request. By dividing warehouses into zones or slots and numbering aisles and bins, warehouse employees may more easily navigate the storage facility. While not all warehouses are designed the same way, an organized warehouse is necessary for effective operations. The way you plan your warehouse space will depend on the things you store. For example, a warehouse containing huge machinery may have specialized zones, whereas a warehouse storing small retail products will have bins and aisles. Optimizing your warehouse plan will not only enhance space utilization but also increase warehouse productivity and save you money. Consequently, this helps you reach your company goals and satisfy your customers with on-time deliveries. Create a Workflow Maintaining an efficient inventory control warehouse is critical to avoid bottlenecks and out-of-stock situations. In addition, a streamlined inventory workflow can assist you in keeping your buyers satisfied and convert them into loyal customers. So, how would you establish an efficient workflow? Here are some helpful warehousing and inventory management suggestions: Make an attempt to estimate future sales. Use tools that assess old sales and forecast future sales for you. Set a minimum production quantity for each product. This helps to avoid losing sales and income due to product shortages. Set a maximum stock limit. This assists in avoiding overstocking a product, which can result in considerable losses. Ensure that products are delivered out in the order in which they were received (first in, first out) to maintain product freshness and reduce shelf life. Use a warehouse inventory management system. This is the simplest and most effective method of maintaining a steady inventory flow. Invest in Warehouse Inventory Software A warehouse management system (WMS) is a software solution designed to automate, optimize, and support the operations and activities of a business warehouse. It can automate and simplify a variety of warehouse management operations and maintain a real-time inventory record of all available goods. When goods arrive and depart the warehouse, your warehouse inventory management system will accurately show all inventories and its whereabouts. Warehouse inventory management software may be configured to automatically replenish stock when a predefined minimum number of items are reached. The finest software analyzes previous sales data automatically to identify the appropriate minimum number for automated reordering. It also determines the minimum quantities at which each product should be replenished. Warehouse Inventory Challenges and Solutions Limited Visibility & Solution Inventory visibility refers to the ability to view and track inventory in real-time. It also helps gain insight into the exact number of units of each SKU in stock at all locations, along with its location within a warehouse or fulfillment center. When inventory is difficult to identify or find in your warehouse, it can result in incomplete, inaccurate, or delayed shipments. Receiving and locating the correct stock is essential for smooth running warehouse operations as it helps to maintain a positive customer experience. Solution: To optimize purchasing and receiving operations, increase accuracy, and eliminate missing goods. Including photos with correct product descriptions in your inventory database can also be helpful. Investing in inventory management software is, once again, the best way to overcome low inventory visibility. These systems are meant to automate the process of inventory management across the supply chain, all from a single dashboard. The adoption of digital and data-driven procedures allows businesses to have a comprehensive view of inventory management in warehouse. Inventory Depletion & Solution Unsold goods are considered a loss in inventory. Multiple factors contribute to inventory depletion or shrinkage. Sometimes stocks can become obsolete or out-of-date before being sold. In addition, spoilage, damage, or theft are a few other reasons for inventory loss and can be referred to as a serious supply chain issue. Therefore, it is necessary to identify, track, and measure trouble areas. Solution: Using a third-party logistics (3PL) or fulfillment service (fulfillment solution) increases security. To reduce inventory shrinkage, they'll take the necessary steps to keep your goods secure. They'll provide you with the technology and reports you need to keep an eye on stock levels. Using an Old Excel Spreadsheet & Solution The expansion of a company will be hampered if inventory is managed manually using paper-based techniques. A lack of digitalization and an ineffective inventory management procedure yield dismal outcomes when sales volumes rise and inventory increases. It is time to replace excel spreadsheets with newer technologies like business intelligence and to analyze and track large businesses better. Solution: Having an inventory management system will make the process more efficient and provide you with real-time data. Businesses utilize various inventory management systems, depending on their type of operations. Manual inventory, periodic inventory, and perpetual inventory are three examples of inventory management approaches. Another option is to use one of the several software programs such as Upserve, Megaventory, and Orderhive for inventory management that are currently available on the market. Warehouse Space Management & Solution A warehouse layout that facilitates the simple selection, packaging, and shipping of orders is a sign of efficient warehouse space management. Designing a functional warehouse layout is critical since it directly influences the efficiency and productivity of your warehouse. A well-designed warehouse layout enables easy access to stored goods, saves travel time, and increases order fulfillment rates. Solution: Optimize storage space and inventory flow by utilizing inventory management systems that include warehouse management features. Automate order picking, packaging, and shipping operations by categorizing inventory storage by shelf, bin, and compartment. Communication Difficulties & Solution Collaboration and communication are critical in the management of warehouse. Lack of communication in a warehouse can result in disorganized operations, resulting in errors and inefficient processes. In practice, this might imply that stock is misplaced or delayed, resulting in a negative customer experience. Solution: Warehouse workers should be equipped with phones and radios for one-on-one communication. Mobile devices are the foundation of portable communication, which is critical for warehouse employees who are always on the move. Supervisors and managers must have a PA system, also known as a public address system, to make announcements in an emergency or when loading and unloading goods. Another option to simplify warehouse operations is to distribute wearable GPS devices to your employees. Using cloud-based software to manage inventory also provides the best solution for checking stock and communicating data across departments. Final Words Warehousing and inventory management affect every step of your e-commerce supply chain, from receiving and storing goods to fulfilling and shipping orders. Poor warehouse inventory management may lead to higher logistics costs, dissatisfied warehouse personnel, more picking and packing errors, delayed shipments, and disappointed customers. However, with some of the best practices mentioned above, you may improve your warehouse inventory management. You can take advantage of the solutions to most of the key challenges listed above. FAQ What are the four ways to control inventory? The four key ways of controlling inventory are as follows: just-in-time delivery, downloading inventory software, stock control, and lowering carrying costs. How is inventory management different from warehouse management? The primary difference between the two systems is the human component. While inventory management is concerned exclusively with merchandise or stock, warehouse management includes the administration of workers as well as shipping or shipping professionals who work in a warehouse setting. What are the four inventory management types? Primarily, inventory management is grouped into four types: Raw materials Works-in-progress Maintenance, repair, and operations (MRO) goods Finished goods

Lean Manufacturing

Article | December 16, 2021

Lean manufacturing is an operational approach used to create value. Businesses adopt lean manufacturing to improve productivity, reduce waste, increase customer value, and employee satisfaction. Many businesses are accelerating their adoption of lean principles and practices due to the emergence of the industry 4.0 transformation. As a result, companies such as Caterpillar, Intel, Textron, Parker Hannifin, and John Deere are all reaping the benefits of lean manufacturing. So, where did the idea of "lean manufacturing" first originate? In this article, you'll learn about the origins of lean manufacturing and its key principles. The Origins of Lean Manufacturing The principles of lean manufacturing were developed in Japan in the mid-20th century. Toyota, a famous Japanese automaker, experienced major delivery issues at the time. Its production chains were excessively long; thus it couldn't supply enough products on time. As a result, Toyota needed a new Performance measurement system. The company's managers identified a solution. They created a new project management method called the Toyota production system. Its basic idea was to improve product distribution by reducing waste. It was a good concept. It helped the company shorten manufacturing chains and deliver products faster. Toyota's production method created a simple and effective waste definition. Any step that did not improve the end product's functionality was called a waste. Later, other manufacturing industries adopted the system. It was renamed as lean manufacturing. It's now a global phenomenon and is used by large and small businesses worldwide. When should you implement the Lean Manufacturing Method in your business? Lean is a waste-reduction methodology, approach, and a lifestyle. While it is commonly used in manufacturing, lean techniques are applied to reduce waste while keeping high quality in any business. Waste reduction of 80% plus Reduced production expenses by 50% Decreased inventories by 80-90% Producing quality items is 90% less expensive. Workforce productivity improved by 50% If you want your business to get the above benefits, you need to adopt lean manufacturing principles. Five lean Manufacturing Principles Lean manufacturing benefits businesses in multiple ways, and this lean lifestyle has the potential to empower any organization and increase its market competitiveness. So, let us observe the five fundamental principles of lean manufacturing. Value For the first principle of defining customer value, it is vital to understand what value is. For customers, value comes from what they're willing to pay for. The customer's actual or hidden demands must be discovered. Customers are not aware of what they want or cannot express it. When it comes to new items or technologies, this is a regular occurrence. Assume nothing; ask about the pain points being experienced and then craft a unique value proposition. Never force a solution into a problem that does not exist.” – Thomas R. Cutler, President & CEO at TR Cutler, Inc. For example, you can use various methods to find out what customers value, such as surveys and demographic information. With these qualitative and quantitative methodologies, you may learn more about your clients' needs, their expectations, and their budgets. Value-Stream Identifying and mapping the value stream is the second lean principle. By starting with the consumer’s perceived value, all activities that contribute to that value may be identified. Waste is anything that does not benefit the client in any way. It can be divided into two categories: non-value-added and unnecessary waste. The unnecessary waste should be removed, while the non-value-added should be minimized. You can ensure that clients get exactly what they want while minimizing the cost of creating that product or service by removing unnecessary processes or steps. Flow The next operations must proceed smoothly and without interruption or delays after removing wastes from the value stream. Value-adding activities can be improved by breaking down tasks, reorganizing the manufacturing process, distributing the workload, and educating personnel to be flexible and multi-skilled. Pull The fourth lean principle requires a pull-based manufacturing system. Traditional production systems use a push system, which starts with purchasing supplies and continues manufacturing even when no orders are placed. While push systems are simple to set up, they can result in vast inventories of work-in-progress (WIP). On the other hand, a pull method pulls a customer's order from delivery, causing new items to be made and additional materials to be acquired. Kanban, one of the lean manufacturing tools, can help organizations develop a pull system to control material flow in a production system. An efficient pull system maximizes available space, reduces inventory, eliminates over-and under-production, and eliminates errors caused by too much WIP. Perfection While completing Steps 1-4 is a great start, the fifth and possibly most critical step is incorporating lean thinking and process improvement into your organizational culture. As benefits accumulate, it is vital to remember that lean is not a static system that requires continuous effort and awareness to perfect. Each employee should get included in the lean implementation process. Lean experts sometimes state that a process is not truly lean until it has undergone at least a half-dozen value-stream mapping cycles. How Nike Demonstrated the Benefits of Lean Principles Nike, the world-famous shoe and clothing powerhouse, has embraced lean manufacturing principles and practices. Nike experienced less waste and increased consumer value, as did other businesses. It also shared some unexpected benefits. It is proven that lean manufacturing can minimize terrible labor practices at a company's overseas manufacturing unit by up to 15%. This result was mostly due to implementing the lean manufacturing practice of valuing the workers more than earlier routine labor practices. It provided greater significance to an employee and, as a result, greater significance to the organization as a whole. Final Words Implementing lean manufacturing principles is a good way to run any organization. Businesses that build their operations on the two pillars of lean manufacturing, constant improvement, and personnel respect, are well on their way to becoming a successful and productive organizations in the modern era. To become a lean company, an organization must fully grasp the benefits and added value that it may get by adopting lean manufacturing principles. FAQ What is Five S's of lean manufacturing? The 5S of lean manufacturing are Sort, Set in Order, Shine, Standardize, and Sustain, and they give a framework for organizing, cleaning, developing, and maintaining a productive work environment. What are the two pillars of lean manufacturing? Lean, as modeled on the Toyota Way values, has two pillars, first is ‘Continuous Improvement’ and second is ‘Respect for People’. Why are lean principles beneficial for any business? Lean manufacturing is a business strategy that has proven to be highly successful since it can help you decrease costs, remove waste, enhance production, maintain excellent quality, and thus increase business profit significantly.