FEATURE SUPPLY CHAIN SOLUTIONS
How modern technology can offer a solution to supply chain challenges
BY CHRIS HESLOP, SENIOR MARKETING MANAGER, HONEYWELL
T
he rise of e-commerce paired with consumers’ demands for fast and free
shipping is putting a huge amount of strain on warehouses, retailers, manufacturers and logistics providers. It has led to supply chains having to move faster than ever before, while simultaneously maintaining an exemplary level of customer service. The logistics operation is of colossal
importance to a business, and failures here can be hugely damaging from both a financial and reputational standpoint. However, those under pressure can benefit from embracing some of the new technologies aimed at improving supply chain efficiency. In order to stay competitive, many businesses are starting to incorporate the Internet of Things (IoT), cloud solutions, and automation throughout their supply chain – from inside the distribution centre to shipping and delivery. Deploying these technologies means that those involved in the overall management of the supply chain are able to plan ahead and also drive collaborative decision- making. In doing so, they can ensure faster response times and delivery. One particular technology that benefits
warehouse operations is voice technology. This is a perfect solution for the faster speed at which supply chains are now expected to operate. Voice technology allows warehouse managers to communicate efficiently with workers, and is critical to the overall success of the picking process. The more traditional methods of picking – such as pen and paper, and even barcode scanning – require workers to stop and read instructions. This slows down the picking process. But with voice technology, warehouse workers become ‘connected workers’ and receive instructions through their headset while on the move. This means they can work hands free and can work faster than before, and productivity and revenue is driven upwards as a result. Additionally, the accuracy of workers’
picking is significantly improved. Workers must verify not only the quantity but also the location of each item picked. As such, the probability of an error is substantially reduced. In fact, the use of voice technology can typically achieve a 99.99 per cent picking accuracy rate. With research showing that European
S10
distribution centres are losing an average of £240,000 each year due to picking errors, it is in an organisation’s best interests to invest in technology capable of cutting out supply chain losses.
CONNECTED SOLUTIONS AND THE BENEFITS OF ANALYTICS A further option for optimising delivery and shipping logistics is cloud-based connected solutions. When it comes to shipping, the obvious problem is that there is not a huge range of viable options for improvement. The planes, boats, and trains used to transport goods cannot realistically go much faster. But the use of technology can make their journey more efficient.
Connected freight solutions offer a path
towards making the overall process more efficient. Shippers and logistics companies can closely monitor shipments of high-value and perishable goods, thereby reducing the amount of damage and financial loss. IoT-enabled sensors and technologies help businesses with real-time updates on the whereabouts and condition of vital cargo while in transit. Armed with this knowledge, businesses are better informed and able to take action to prevent a costly problem from occurring or find a solution to it. The reality is that shippers, logistics providers and retailers
JULY/AUGUST 2017 | MATERIALS HANDLING & LOGISTICS
With voice technology, warehouse workers become ‘connected workers’ and receive instructions through their headset while on the move. This means they can work hands free and can work faster
constantly face numerous challenges in the transit of goods that can potentially affect profits, such as theft, damage, spoilage and delays. But with a cloud- based solution that feeds back real time information to the driver, along with insightful analytics, these issues can be monitored and intercepted. Organisations can take immediate action, rather than dealing with the aftermath. Connected freight solutions work by attaching cost-effective sensor tags – able to detect a range of environmental conditions in which the packages or pallets are being transported. A mobile gateway located inside a shipping container or vehicle captures this sensor data and relays it to a cloud-based command-and-control platform through cellular networks. Crucially, this enables businesses to determine if their cargo has been damaged during the distribution process, perhaps when being loaded or unloaded by workers. According to the 2016 Supply Chain
Resilience Report, published by the Business Continuity Institute, 70 per cent of companies reported at least one supply chain disruption over the course of the year, but it is clear that technology can help to alleviate these issues.
Honeywell
www.honeywell.com
/ MATERIALSHANDLINGLOGISTICS
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