The Time for Inventory Management Automation is Now

Transportation, scheduling and on-time delivery are important for any manufacturer and inventory manager to keep manufacturing and supply chain businesses running smoothly. Unforeseen disruption can cause unexpected delays, but there are many operations in the manufacturing industry that can be streamlined through automation. Optimizing the scenarios that can be controlled, like inventory and material management in the warehouse, can help reduce delays within an organization that can contribute to disruptive situations and add up to costly errors. These small, preventable delays can add up over the cycle of manufacturing and distribution and the effects of disrupted scheduling can also be seen in everyday life. 

A Disrupted Schedule in the Early 1980s

A man exited a plane and stood at Los Angeles International Airport (LAX) passenger pickup for 15 minutes, patiently. Soon 30 minutes, in anticipation (it was Los Angeles, after all) turned into 90 minutes. Frustrated, the man found enough change in his pocket to use a payphone and dialed his employer’s front desk. He was now going to be late to his next appointment. A new voice caught him off guard when she conveyed that the old receptionist had not left a note about arranging for a cab to pick him up from the airport. Unfortunately, the explanation did not reverse the end result of being late for his appointment. “This is how I met your mother,” my father would say (romanticized a bit); late, frustrated and with a disrupted schedule.

A Disrupted Schedule in the Early 2020s

A man checked his watch to confirm what he had expected, he needed to leave his office in Michigan to catch his flight to Texas. But minutes ago, his coworkers in Ohio called to explain a time-sensitive business scenario and he needed to understand the risks before approving their creative solution. He allowed himself a 30-second distraction to book an Uber and noticed drivers were about 15 minutes away; perfect proximity for finishing the call and getting to the airport on time. Then, 15 minutes later a soft chime notified the man that his ride had arrived, but the call was not yet over. Luckily, the man had specified the exact drop-off location when booking the ride so he was able to verify the license plate number and get to the airport without missing a detail of his call. This is how I got home to my children’s mother last week; on time and calm, despite my previously disrupted schedule.

Challenging the Status Quo for Disruption in Manufacturing

What do these two stories have to do with manufacturing and inventory management? Think about the transportation conditions that my father and I faced and internalize them: how would your inventory/warehouse describe their week (and their internal customers) when it comes to quality, manufacturing, packaging and shipping?

1. Late, frustrated, with a disrupted schedule; or
2. On-time and calm, despite a previously disrupted schedule

If the answer leans heavily toward scenario 2 then chances are that you may not need to read this article. In the likely scenario that you, dear reader, find yourself thinking about the fallout from Tuesday’s (or was it Monday’s?) material delay that spun off a schedule-ruining chain of events, then it’s time to challenge the status quo. 

We shouldn’t have to work late and miss deliveries due to a forgotten note, but we still do. Start to imagine what it would be like to know that your delivery will be made on time, despite another priority distracting you.

Effectively Managing Limited Time and Resources 

Picture your organization like a small fishing boat trying to bring the day’s catch to market, and inventory delays are a small leak in the boat. You have a sail that is currently being used to cover that leak, but that means the sail isn’t catching the wind and your fish is losing freshness by the minute as you sit still in the water. The cloth can be used to cover the entire hole, or as a sail to propel you to shore. 

I’m sure you’re following the analogy: the sail – your time and resources – is limited. Using your time and resources for troubleshooting might keep you afloat, but innovation moves you forward.

Automating Inventory Management and Material Transfers

If you have not yet automated your material transfers then your task is to free enough of the sail to catch some of the wind. You will likely receive fearful pushback from crewmates who are all-too-familiar with the leak, and you will have to remind them that your collective goal is to sell your fresh catch, whether your boots are wet or dry. Once you win them over and reach shore, you can repair the hole and use the whole sail for propulsion tomorrow. Sailing faster means less time from shore to deep waters and back, which means more time catching fish, which means more fish to sell, which means more profits each day.

Innovation breeds innovation. Once you stop using your finite resources to resolve complex schedule disruptions caused by simple material delivery delays, you can move to trimming the non-value-added (but delay-preventative) buffers. Cutting out the buffers will provide natural capacity increases, without spending a dollar on a new production line.

It isn’t the 1980s anymore. The technology is here.

Let me amend that: it is the 2020s and the technology is now a commodity that your competitor has already investigated and possibly implemented. The time to step into automation is now.

If you’re interested in assessing your company’s digital manufacturing capabilities, take a free diagnostic assessment to gain insights about your strengths and weaknesses. And if you missed it, check out the replay of our latest installment of QAD Tomorrow: Digital Manufacturing.