The Technology Manifesto

Technology has played a part in the complexity of the supply chain and has performed functions such as electronic invoicing, computerised shipping and tracking and semi or full automation that are core components of many supply chains today. The key function played by technology in the logistics sector, albeit in part, has been to streamline operations, improve various process efficiencies, and provide better service levels with lower costs. It has helped companies to plan and integrate with various stakeholders, providing increased visibility. Mary Pat Freeman, Director, Paxxal, provides insight into how technology is influencing various aspects of the supply and helping enhance its optimisation.

1) What according to you are the critical success factors for warehouse optimisation? The optimisation of warehouses firstly requires a deep understanding of each operation that is carried out, in particular to identify processes that may lead to unnecessary contact and will inevitably increase cost. The use of new technologies aims to simplify the process to reduce layers of complexity, eliminate exposure to contamination and thus reduce costs. Companies are getting smarter and finding more ways to drive efficiencies throughout their operations. Some of the key factors are becoming prevalent in different technologies coming to the market. The use of tracking technology like RFID, bar codes, temperature tags and smart inventory systems are helping to monitor product dwell times. New material technologies that are providing a cleaner longer lasting platform to utilize are eliminating warehouse wear and tear along with driving costs down. Being able to utilise your space, product, and equipment as efficiently as possible will allow any warehouse, no matter what industry it is in, to be fully optimised.

2) What role has technology played in augmenting the logistics sector? What are the barriers towards technological implementation? With the globalisation of the markets, supply chain and logistics processes are becoming more complex. As such, the implementation of technologies helps organisations to control goods in real time, as well as manage all required components. Technology and innovation is helping to simplify processes and improve productivity. Technology will continue to have a significant impact on the growth of the logistics industry. Driving costs savings through various levels of the supply chain, especially in the transportation area, is allowing companies the opportunity to grow in new and different ways. Although technology is advancing rapidly, not all industries are aligned or can keep up with each other. For example the benefit of temperature tracking technology will be as beneficial in the industrial industry as compared to the produce arena. Until certain technologies are standardised by some of the major forces in their specific sectors, there will be slower transitions.

3) Could you highlight some innovations warehouse racking and automation that brought about a drastic change in efficiency? Automated Storage & Retrieval Systems are another such example that has assisted in the management and control of inventory. By introducing different types of warehouse racking such as push back pallet racking, drive-in and mobile pallet racking, companies are able to optimise space in their warehouse, leading to improved efficiency and lower cost. 4) Has the foray of 3PLS and the increasing competition led to a change in the dynamics of warehousing? The use of 3PLS is creating a more competitive environment in the warehouse industry. Having a streamlined efficient solution to complete an operation is what every company strives for. Making this market more competitive will only drive more change and cause companies to seek out the optimal solution that works best for their business.