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You will not always immediately realize the performance increases expected from the implementation of new MDE solutions. In many cases, this is due to underlying warehouse processes. Furthermore, efficiency gains in neighbouring departments or in the back office will often not receive attention. In the following article, we will explain, what should be kept in mind.
by Marc Teuber
book1432 words timelapse7 minutes reading time
Mobile Data Acquisition: Inefficient Processes slow down Workflows 🔗︎
In practice, it is not uncommon for an MDE solution to be simply “put over” existing processes hoping that this will automatically compensate for existing deficits and thus increase efficiency. However, this often proves to be a fallacy. Processes should therefore be analyzed before introducing mobile data acquisition and be improved accordingly. This helps to avoid problems and disappointments later on.
Often, work speed does not increase or even seems to decrease due to inefficiencies in other warehouse areas that are slowing down MDE technology. In many cases, these are processes that have grown over years. Some of these inefficiencies are being described below:
Formal Assumptions and Daily Practice: Growing Gap increases Problems 🔗︎
If processes in the warehouse and its related departments are not regularly reviewed, this leads to further problems. The gap between assumptions on which official rules and guidelines are based and daily practice is widening. Decision-makers, usually superficially using official data, then often come to wrong conclusions. For example, if storage space runs short the company or Warehouse Management may hastily assume that the storage areas are too small. On closer inspection, however, it is often due to a lack of organization: There are many items being outdated or held twice. New or temporary employees also have difficulties in quickly familiarizing themselves if official guidelines and specifications do not correspond to everyday practice. For this and other reasons, it is worth investing more in process review and improvement.
Improve Warehouse Design 🔗︎
A typical reason why work processes are slowed down after having introduced a MDE solution is due to the warehouse design no longer meeting current requirements.
Carefully plan Storage Locations 🔗︎
In practice, provisional and thus not carefully designed storage areas develop into permanent storage locations over time. As a result, over months and years, this results in many storage areas where parts and articles are stored twice and several times. On the other hand, similar articles, which are often requested together, are located far apart. This may enormously increase the pickers' driving and walking distances.
An ABC analysis can be helpful here. In this case, articles are being categorized according to their demand frequency. The most frequently demanded goods are assigned to category A and stored at the front ready to pick.
Organize Storage Areas in the Warehouse in a Sensitive Way 🔗︎
In general, it is worth creating extra space for tasks that need a larger part of the warehouse or play an important role. This provides more structure and a better overview. For example, special storage areas for returned goods are recommended. This is especially true for the mail order business as the number of returns is usually relatively high. Areas for the disposal of packaging in the warehouse can also be useful and speed up work. Furthermore, a spatial separation of incoming and outgoing goods helps eliminate error sources from the start.
Use Barcodes Efficiently 🔗︎
You should make sure that all relevant shelves have been equipped with barcodes. In many cases, it also makes sense to use barcodes that support a high information density, are easier to read and are better protected against damage. There are clear advantages using 2D barcodes over using 1D barcodes. Each barcode has its advantages and disadvantages. Inform yourself about this, as not all barcodes are the same..
Moreover, all shelves should be labelled and this procedure should be followed consistently throughout the warehouse. Coloured markings can also be helpful here.
Pay Attention to Shelves and their Arrangement in the Warehouse 🔗︎
Sometimes warehouse shelves are not optimally adapted to the stored goods. For example, it is difficult to reach the items with barcode scanners or auxiliary devices such as ladders and lifting platforms are needed. The scanning process can then take a disproportionate amount of time. Another common problem occurs if shelves are designed or arranged in such a way that wi-fi signals are strongly attenuated. If data transmission takes place via wi-fi, scanner data will no longer reach the ERP system in real time, but only at a later point when the connection will have been re-established. Consequently, there is no real-time data transmission any more.
Mobile Data Acquisition plays off its Strengths in Zone Picking 🔗︎
For larger warehouses, it makes sense to consider implementing a zone picking system. Pickers are assigned to specific storage areas and do not have to run through the whole warehouse. Pickers become familiar with the items and their storage locations in their area of responsibility what enables them to increase their work speed. As there are relatively short running distances, scanning can also take place at much shorter intervals. Thus, MDE solutions can play to its strengths here in the best possible way and again increase working speed significantly. Of course, the entire warehouse only benefits from this if work processes in other zones also run smoothly.
Inadequate Warehouse Utilization 🔗︎
Furthermore, too high warehouse utilization can weaken the benefits of mobile data acquisition. If warehouse utilization climbs above 80 per cent, it often means a lot of time being lost searching for free storage space. At this point, it is worth expanding storage capacities or slimming them down by discarding superfluous and obsolete items.
Process Breaks due to Manual Work 🔗︎
Processes that are still carried out manually can also slow down mobile data acquisition. For example if a scale in the warehouse or shipping does not send the data directly to the ERP system, but employees must first type in the weight data manually. Another example are orders taken by fax or telephone. Processes are slowed down compared to transmitting orders directly to the ERP system and automatically forward them to the warehouse from this point.
Unsuitable Warehouse Vehicles 🔗︎
Sometimes warehouse vehicles also slow down work processes. For example, two or more different vehicles are needed to store or retrieve an item or part of the process has to be carried out manually. This increases the time required. In other cases, trucks are too slow or they are not suitable for the narrow and winding paths in the warehouse. In this case, advantages arising from the fast data transfer evaporate.
Biggest Benefits are often realized elsewhere at first 🔗︎
Even if work speed in the warehouse does not seem to change at first, gains can often be realized in other areas of the business. This is why it is important to look beyond the warehouse to get a holistic picture. If a production is linked to the warehouse, it may now receive the parts needed to produce faster and with fewer errors. Also, important information about bottlenecks may now be available to production at an earlier stage. This means that countermeasures can be taken early.
Furthermore, data on missing items can be transmitted more quickly to the responsible suppliers, shortening delivery times. Thus, modern logistics strategies such as a just-in-time approach can thus also be implemented. In addition, the risk of ordering out-of-date parts or ordering twice will also be reduced. Finally, sales and distribution also benefit from this, since delivery times are shortened and incorrect deliveries are reduced. This leads to more customer satisfaction and loyalty, as there is nothing customers hate more than long delivery times and wrong deliveries. In addition, customer service will also be relieved.
How to prepare for Discussions with MDE Providers 🔗︎
Expert external MDE service providers can only support a company in planning and implementing a MDE solution in the extend the information they receive is complete and up-to-date. For this reason, you should deal with the topic in advance and make preparations before you start discussions with the relevant MDE providers. Important warehouse processes should be at least roughly described and warehouse components should be listed. Moreover, procedures and processes in directly adjacent departments such as production or shipping should possibly be taken into account. Especially if they could have a major impact on warehouse processes. Furthermore, it should be ensured that all colleagues internally speak the same language. This facilitates familiarization later on. It is also worth sensitizing employees to keep their eyes on the big picture despite initial difficulties (Learn more about, why picking can be slowed down by an MDE solution). This way, long-term MDE project success can be effectively supported.
It also makes sense to think about a requirements specification at an early stage. This is a document in which requirements are described systematically from the customer’s point of view. This creates a framework ensuring everyone is talking about the same thing and also creating a uniform basis for properly comparing different quotes from MDE providers.
Mobile Device Scanners & paperless picking in the warehouse
Sounds paradoxical: When mobile data acquisition is introduced in the warehouse, the first fruits are often reaped outside. Picking can sometimes even slow down - a circumstance that sometimes unsettles warehouse management. We list up three common causes for this, followed by three tips that increase picking speed.
5 Ways Digital Logistics improves Business Processes
Digitalization is changing logistics processes. Today, some of these changes have growing importance for small and medium-sized companies (SME). Those dealing with the development in time can realize competitive advantages.