Okay guys, hope everyone had a good weekend doing DCM blog! After covering the introductions towards trends and challenges facing warehouses and distribution centres in the previous post,

We're here to provide you with a deeper insight into the actual trends, challenges, usefulnesses and also not to mention, the constraints present!

Technology in Our Industry..

1. Electronic Date Interchange(EDI)
2. Warehouse Management System (WMS)
3. Radio Frequency Identification (RFID)

EDI

The importance of computerisation has not gone unnoticed. In this post, we will talk about EDI in warehousing operations, and it's usefulness and constraints. EDI stands for Electronic Date Interchange. This is a standard form of data format that can be readable between a company's computer system and another company's computer system. For warehouses to become 'information warehouses', the use of EDI technology is essential. Although this technology is commonly used, however we feel it is a trend that can be developed further and bring even greater benefits in the future. This 'paperless' technology of transmitting information flow and recording data electronically has the following usefulness.

Usefulness:

• EDI prevents errors, such as shipping and billing errors.
• Time is saved as transactions are nearly instantaneous and computers instead of human manpower is involved.
• Precious time is saved as transactions and data can be stored information into the system.
• Speed in receiving information from trading partner.
• EDI can become an important component in Just-In-Time systems.
• Production can become better scheduled.
• Data needs to be input only once into the system.
• Money can be saved by reducing the amount of paper used.

WMS

The Warehouse Management Systems (WMS), a sophisticated tool, has grown through time along with the trends of warehousing/distribution centres. It was build initially as a system to control movement and storage of materials within a warehouse, now the role of WMS is expanding to include light manufacturing, transportation management, order management, and complete accounting systems. Warehouse management systems have typically been associated with larger, more complex distribution operations. Small, non-complex distribution facilities have historically not been viewed as candidates to utilize this costly and data intensive system. However, even smaller and midsize companies are increasingly recognizing the significance of warehouse management systems in today's environment of integrated logistics, just-in-time delivery, and e-commerce fulfillment.

WMS can operate as a sole system or as modules of an Enterprise Resource Planning (ERP) system, with technologies such as the RFID, ADC and EDI implementing it.

As mentioned earlier, the primary purpose of a WMS is to control the movement and storage of materials within a warehouse. With the objective to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the physical storage facilities such as racking and pallets, manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.

Here are some notable advantages of adopting the WMS:

1. Inventory Management

Delivering inventory visibility and accuracy.

This system helps to increase the percentage of orders that are shipped complete, thus increase customer satisfaction and offset margin squeeze.
It also allows you to identify and track inventory with sufficient scale to allocate, fill, and deliver orders as accurately as possible, as often as possible. You can view and monitor the location, condition, and amounts of all finished goods, components, and raw materials in your warehousing operation, as well as rotate your inventory while adhering to FIFO and LIFO accounting principles and considering freshness, seasonality, and other variables.

• Reduce inventory on hand
• Increase picking accuracy and order fill rates
• Improve customer service
• Ensure proper inventory rotation
• Improve inventory visibility and accuracy

2. Work and Task Management

Organizing available work and tasks to optimize productivity

Increase efficiency for high-volume fulfillment and seek to align the efforts of individuals and teams with rapidly changing work priorities.
• Improve worker and workforce productivity
• Improve order fill rates
• Increase employee retention and morale
• Accelerate throughput and velocity

3. Labor Management

Optimizing labor

This toolset increases efficiency and maximize worker performance in the warehouse. Resulting in sharp workforce planning, staffing, and execution capabilities, along with the ability to monitor direct and indirect labor and provide feedback to workers and supervisors as picking, packing, and shipping activities are completed.
• Improve labor planning
• Increase worker productivity
• Optimize fulfillment execution
• Enhance customer service
• Reduce warehouse labor resource costs

4. Cross-Docking (refer to earlier post for specific explanation)

• Avoid unnecessary holding costs
• Improve product availability
• Commingle and consolidate freight
• Increase customer satisfaction

5. Value-Added Services (refer to earlier post for more information)

Adding value to the closer point of sale.

Value-Added Services enables management to adopt postponement strategies and mass customize products at the time of distribution and fulfillment to ensure customer requests are fulfilled correctly at the lowest total supply chain cost. Achieve greater ability to accommodate changing customer tastes and product requirements, with fewer excess products, parts, and components.

• Reduce lead time to customers
• Customize products closer to the point of sale
• Reduce inventory on hand
• Reduce product obsolescence
• Improve customer service

6. Voice-Directed Distribution

Giving voice to distribution and fulfillment

Voice-Directed Distribution helps to improve distribution and fulfillment processes by utilizing advanced speech recognition technology to voice-enable order selection, replenishments, put-aways, transfers, and receiving. Workers can operate hands free without reliance on cumbersome lists, labels, and scanners-thus improving order accuracy. The result is a faster, safer, and more secure work environment for all warehousing personnel, with the chances for miscommunication virtually eliminated.
• Improve accuracy
• Increase productivity
• Enhance worker safety
• Reduce training time and support costs
• Increase throughput and velocity

Here, is a short video clip on the application of using voice technology in order picking work.





As perfect as it seems to be, the WMS still has it constraints.

Even though WMS continues to gain added functionality, the initial core functionality of a WMS has not really changed. Certainly any warehouse could benefit from some of the functionality but the benefit may not be great enough to justify the initial and ongoing costs associated with WMS. Warehouse Management Systems are big, complex, data intensive, applications. They tend to require a lot of initial setup, a lot of system resources to run, and a lot of ongoing data management to continue to run. That’s right, you need to "manage" your warehouse "management" system. Often, large operations will end up creating a new information system department with the sole responsibility of managing the WMS.

RFID

Welcome again! Okay guys, this second post will offer you an insight into the detailed specifications and information about the various trends and challenges.

In short, RFID stands for 'Radio Frequency Identification'.

To give you a good introduction to the technology of RFID and it's applications and also to facilitate your understanding, we hope this video will be a useful one. :)




This technology is very popular with many warehouses and distribution operations. As supply chain transparency becomes even more essential in our industry today, the evolution and increasing use of RFID technology could not have come at a better time. With such challenges of tracking inventory, optimizing shipping and receiving, supply chain transparency, this technology becomes even more necessary. Retailers such as Walmart and Target in the United States has set the stage and developed this RFID technology. This technology has allowed manufacturers and distributors to track inventory through the demand chain as it moves throughout the supply chain to finally, end customers. RFID provides real time and highly accurate inventory transparency, improving sales and enhancing operations at the same time.

RFID technology has many uses, namely in:

• Animal identification and tracking.
• Deployment in libraries, replacing bar codes on libary items such as books, CDs and DVDs.
• Information is read using an RFID reader.
• RFID baggage tracing at airports such as the London airport and Dubai airport.
• UHF( Ultra-High Frequency) tags are used commonly in pallets, shipping containers and truck and trailer.

Technically wise, RFID is a method of identifying an object through a wireless radio link. RFID tags contain mostly 2 parts: integrated circuit for storing and processing information and the other is the antenna for receiving and transmitting the signal. RFID tags contain unique information that can link and share information wirelessly with computer databases such as the Warehouse Management System. Data encoded on each tag can be read using a hand-held scanner. Data are transferred into the WMS and updates the database at the same time. In relation to warehouses, goods being shipped out can be tracked and traced efficiently in real time. RFID technology improves the efficiency of inventory tracking. Also, RFID is a 10 year old technology that will cause a revolution in supply chain management over the next few years.

These are the main advantages of RFID technology:

• Provide real time information about the location of a product, throughout the entire supply chain.


• Efficient track and trace.


• Highly automated.


• Offers transparency in operations.


• High speed reading and sorting.


• No line of sight is required.


• Does not require the supervision of warehouse personnel.


• Provides more unique information than a bar code can contain.


• Improvement of service levels.


• Lower possibility of product/goods loss.

RFID tags contain information on where the product belongs. The material handler will then know where to send the goods to its intended destination. A simple concept: 'the faster the goods move out of the warehouse, the more efficient the process'. RFID and Bar coding both essentially carry information about a product. However, as we move away from the era of using bar coding, RFID technology allows several individual objects within the same group to be identified concurrently. This is unlike bar coding which must be read one by one. Hence, fast simultaneous and unattended reading are the main characteristics that set RFID apart from Bar Coding. A perfect example of companies using RFID technology is Walmart. Walmart is pushing this technology aggressively to its suppliers. For instance, they require 100 of its top suppliers to have RFID labels on shipments and goods. According to Walmart, this technology helps to reduce costs. As mentioned to one of our classmates' query, there are several different radio frequency transmitters with different frequency levels.

Here is an interesting picture of how RFID chips are embedded in the cardboard of T-shirt tags.

Consider any organization that requires tracking and tracing of items that you send or receive. Would you adopt the traditional method of bar code, or RFID technology? Adopt RFID technology and you will immediately see the benefits of it. Smart distributors and retailers will make use of RFID technology for new and innovative improvements in inventory and supply chain purposes. A trend now is that there is a retailer trying out the RFID technology with inventory control. Placing RFID tags on the shelves in stores can help detect low stock items and facilitate an efficient stock replenishment schedule, identify purchasing patterns and prevent the loss of items.

However, with all the advantages and benefits we’ve highlighted so far, all is not perfect and RFID do have some disadvantages too.

• RFID is more costly as compared to Bar Code.(with a current price of 50 cents per tag)
• Also, RFID tags are prone to physical damage when exposed to environmental conditions.
• Tags are bulkier as the tags are embedded with electronic components.
• Manfacturers, companies and developers will have to design their warehouse and inventory management systems to tap on using the real time nature of RFID tags information.
• Price is still the biggest constraint to adopting RFID.
  

In all, RFID is a technology that we would all embrace as the stage for greater efficiency in track and trace can provide greater transparency in the entire supply chain. This is a technology that will stay and develop further in the years to come. To help in your understanding, our members have decided to post up an interesting article for your reference. Enjoy!

http://news.medill.northwestern.edu/chicago/news.aspx?id=111561