7 STEPS TO IMPLEMENTING AUTOMATION While the benefits of supply chain automation are clear, the skill with which it’s implemented contributes to a solution’s success. These guidelines can help. 1 Focus on adding value. The solutions that will add value vary by company, says Lisa Anderson, president with LMA Consulting Group. Ecommerce retailers may find that automating the order-taking process adds the greatest value, while distributors might look to advanced analytics and planning solutions to better manage inventory and free up cash. 2 Take it step by step. Start with a solution that brings a rapid return on investment and addresses the most urgent problems, and then build from there. Introducing too many functions at once increases complexity and can overwhelm employees. 3 Invest in change management. When new solutions fail to live up to expectations, it’s rarely the technology that’s the reason, says Sandy Gosling, partner with McKinsey. Instead, it’s often a failure to build the capabilities needed to leverage the technology. Supply chain leaders can help employees understand how a new way of operating will benefit them and the company, and then train them on the systems. 4 Know your starting point. This isn’t always obvious, given corporate restructurings and changes in IT solutions. If you can’t identify the starting point, you risk generating needless disruptions when automating. 5 Check the data. The GIGO (garbage in/out) rule applies. While perfection isn’t necessary, data should be “directionally correct,” Anderson says. 6 Consider the impact to the organizational structure. It likely will change as new data becomes available. Employees who were good at finding problems may find their roles supplanted by technology. Instead, they’ll be charged wit h deciding how to address the problems. 7 Develop back-up plans. Automation can fail even with the best of care. Backup plans and systems can help with recovery until systems can be restored.
Robots, such as Boston Dynamics’ Stretch, can boost warehouse efficiency and improve picking accuracy, among other benefits.
stocked. “We are now able to get ahead of our supply chain and we can order materials and packaging with 12-week lead times,” he says. Leverage Robotics By 2027, more than 75% of all companies will have adopted some form of cyber- physical automation within their warehouse operations, according to Dwight Klappich, vice president and fellow with Gartner’s supply chain practice, in a recent brief. Mobile robots typically require lower capital investments than fixed automation systems, says Rowan Stott, research analyst with Interact Analysis. In addition, it’s typically easier to add robotics to existing warehouses than to put in a new, fixed system. Adding to robotics’ appeal is their dropping prices. Between 2011 and 2022, the average price of an industrial robot fell by about half, finds EY research. Conversely, wages and salaries rose about 43% over the same period, according to Statista.
When all areas of an organization work from the same information, they can make better-informed decisions, he adds. Take the example of RxSugar, which provides allulose, a plant- based alternative to regular sugar, through more than 15,000 stores and 30-plus brick-and-mortar and ecommerce channels. “As a relatively new product, our main challenge has been the supply chain-constrained ecosystem in which we operate,” says Steve Hanley, founder and chief executive officer. The limited universe of allulose manufacturers, combined with RxSugar’s impressive growth, calls for a carefully planned and streamlined supply chain. To help reach this goal, RxSugar implemented a data platform from Crisp that can aggregate data on sales, distribution, inventory, and other functions from across the company’s distribution channels. Hanley and his team can assess top-level demand across the network in real time, plan production, and keep shelves
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