In my consultancy project I try to drive the logistic activities of a company to a simple and efficient way. But, what means simple and efficient and how do you know that a process or an activity is simple and efficient? In some small or medium organization the way that they doing things right now is, according to their opinion, the most efficient way to do that thing.
All the logistic operations must be executed with high performance to have a good cost. For this reason it is necessary to measure these operations and to set up target for performance. For this it is necessary to have KPI (key performance indicators), a KPI which is necessary to be relevant for the business, to be easy to measure and also easy to understand by the people. A good advice it is to choose the relevant KPI for your business, relevant KPI means that KPI which can be easily connected with the global KPI for business. Also I advise you to not use too many KPI, because you lose the essence of the operations if you setup too much KPI. It is not a fix number of KPI for an area, but, according to my experience, if you have more than 5-6 KPI for an area it is necessary to revise this.
Implementing a software solution (ERP, WMS, TMS etc) in a company is the best thing that you can decide at any time. This software solution can arrange, optimize your process and secure your business because it force the employee to do things in a certain way and follow a process that software solution implement it.
As I told you it is a good option to implement a software solution in your company. The wrong things which is associated with the software solution is the level of expectations, because this level of expectations is higher, in most of the case, that you can obtain in real life after you implement a software solution.
I saw in many cases, on the company lots of software solution which was implemented wrong. The software solution it is not bad or good, but the implementation can be bad or good and in case that the implementation is bad it will cost you a lot of money in the future. For example we made a consultancy project on a company who has the well known ERP solution in the world.
Before to implement the ERP solution, in the warehouse reception, when they receive a goods they made 2 operations: they made an internal paper witch prove that the insert the goods in the warehouse in proper condition and in proper quantity and after that, in the same day they complete an excel file to have a “database” and “traceability” (limited traceability that excel file permit) of the goods.
After they implement the ERP solution they made 3 operations in the reception of the warehouse when they receive the goods (it was very strange because the owner of the company think that they must make only one operation: register the goods in ERP systems). Why they doing 3 operations? Because they made the 2 operations that they made in the past and supplementary they register the goods in the ERP systems. Why is happens something like this? The reason is that the implementation of the ERP solution is not made in good way. The implementation was bad, because they follow a bad process.
When they receive the goods in the warehouse, they cannot register that goods in the ERP solution for 2 reason: 1. The software accept to insert the goods only by the invoice (in most of the case when the goods comes into the warehouse it comes with transport document and based on the transport document some time the invoice comes into the company, so in this case the reception of the goods in ERP system will be possible not on the reception on the goods and it is reception after few time when the invoice arrive); 2. The people from warehouse cannot have the permission to insert the invoice of the goods into the systems, only the accounting department has this permission which also delays the process.
In this case the people from warehouse it is forced to keep also the old registering methods of the goods because they must prove in any moment the traceability of the goods and how many products and in which quantity they have in the warehouse.
This kind of problems I found many times in the company and this kind of problems are happens because when they made the implementation of the software solution they treat this project like an IT project not like an operational project. Also they do not use a consultant which have a lot of operational experience and which know how to set-up the process and software to solve this kind of problems. Not all the time the software companies (which implement the software solution) have good business process consultants, and all the time they want to made personalization of the software solution because for all the personalization that you ask you will pay more money. On the other hand it is not recommended that you made a lot of personalization of the software solution because this will reduce the scalability of the solution and creates you problems in the future.
So, the best way is to optimize your business process (operational) and after hat to implement the software solution having all the time an operational business consultant on your side. The operational consultant will cost you money but the total cost of the implementation process it will be lower than if you do not have an operational business consultant in this process.
We can offer support in this way because our core business is to help companies to optimise their operational business process.
The next movie try to present you which picking method is faster: paper, RF, Voice or pick by light. The movie is relevant for the condition that the test was made. In real life pick by light can be used only with special preparation of the picking location (like in the movie) and all other 3 can be used with no suplimentary preparation. Also in the pick-by-light system the goods must be suplimentary arraged on the proper location which takes time to arrange this goods and in the movie is not take in consideration this time because the goods are already arranjed, because they use the same infrastructe for all method. What I want to say is, for example, in case of RF picking you can use as picking zone the space under the racks on the floor levl, and it is not necesary to arrange suplimentary the goods because the systm will guide you to the proper location no matter where is this location in the warehouse, which is not the case on pick-by-light systems. Also, in most of the case the pick-by-light systems it is used only for fast movement products into the warehouse and works in paralel with other picking method or with the pick-by-cart method with permit multioder picking for the products with slower movement. In this case the saving time on the total warehouse operation is lower than what is presented in the movie.
Pick by light it is a solution which can help you to improve the productivity in your warehouse. This solution increases the productivity because the picker has both of the hands free and can pick faster the items on the order.
Pick by light solution is very good for warehouse which has small SKU and big number of SKU’s. Pharmacy warehouse and automotive warehouse can be good examples for this solution – pick by light.
I want to present you a short movie of our partner VELTIONoptimum with Aberon solution.