It’s all about that attitude: Digitization of logistics processes
Logistics is all about efficiency. Every day, a large number of pallets and packages arrive in warehouses and others have to leave at the same time. In between are the goods that are being stored, sometimes for a short time, sometimes for a long time. Keeping track of all this is not easy and costs time and money. A tracking system helps to know where a package or a pallet is at any time. What’s more, it even makes it possible to keep track of when the goods go in or out of the warehouse. Real-time asset tracking provides the perfect basis for analysis and numbers-driven process optimization.
Adopting digital solutions always means upheaval within an organization. Existing processes are analyzed and questioned, problems are uncovered, and responsibilities may be redistributed. All of this can lead to dissatisfaction among employees, whose commitment is needed more than ever, especially when implementing new systems. Successful digitization projects show that the more employees are involved in the digitization process and the more they can contribute their ideas and experiences as users, the smoother the implementation of the digital process will be.
Let’s take an example: In a warehouse, pallets and packages come in and out every day. However, some of them stay in the warehouse longer than planned due to other delays, such as payment, onward transportation, etc. In order to keep track of all the goods in the warehouse, a kind of inventory has to be taken regularly.
The inventory could look like this in a analog way: Pallets need to be searched and found, then picked off the shelf with a forklift. Another worker scans the delivery note on the pallet, and the data from the scan is manually entered into the ERP system. The whole process is time consuming. We know from various projects that this effort can easily add up to 900 hours/year. This inventory process is even more inefficient for pallets or packages that remain in the warehouse for an extended period of time. The information about when they arrived in the warehouse must be recorded manually on a recurring basis in order to bill customers for additional storage costs. That’s because each pallet occupies physical space that is not available to other shipments. The frequent movement of pallets also […]