Industrial Automation Magazine India

Inventory Control platforms give a huge leap over traditional manual methods

Published on : Friday 04-08-2023

Arun Salvi, Head – SCM, Reliance Petrochemicals.

The logistics and warehousing sector are greatly influenced by digital transformation. What are the factors driving this change?
The rapid advancement of digital technologies has fundamentally changed the competitive dynamics of the logistics service industry and forced incumbent logistics service providers (LSPs) to digitalise. Inventory management systems, warehouse automation, real-time monitoring, and data analysis to optimise the supply chain are just some of the fields in which the digital transformation in logistics is intensely reflected, offering benefits such as cost reduction, greater visibility, and operational agility. This is also coupled with the rise of retail e-commerce, rising customer expectations and the pressure to remain competitive in terms of cost, service and delivery standpoint.
 
What are the technology trends that are revolutionising modern distribution and fulfillment centres?
Warehouse Management System, Automated Picking Tools, Automated Guided Vehicles (AGV), Automated inventory control platforms, IoT Implementation, Collaborative Robots (Cobots) and Automated Storage and Retrieval Systems (ASRS) are few of the upcoming technological trends for DCs.
 
Warehouse Management Systems
WMS integrates multiple operational facets (inbound, storage and outbound) of a warehouse/DC to provide real time data/visualisation to aid stakeholders in real-time tracking and decision-making process.
 
Automated Picking Tools
Automated picking tools aid in the pickup of items inside multiple points inside a warehouse with the implementation of robotic/semi-robotic technologies. It eliminates/reduces human intervention thereby removing errors/wrong pickups and increasing productivity by reduced walking/search time.
 
Automated Inventory Control Platforms
Inventory Control platforms give a huge leap on the traditional manual inventory control methods by automating the labour efforts/inconsistencies to monitor and manage inventory at various levels and providing live and accurate status reports. By attaching barcode/RFID systems to inventory parcels we can digitise and provide an e-identity to the material/inventory.
 
Industrial Internet of Things (IIoT)
IIoT refers to integrating various components/machines/devices with digital sensors/mechanisms for monitoring and collecting data for analysis and decision making which enables smooth and effective operations.
 
Cobots
These are collaborative robots, designed to work with humans in a shared space to increase overall productivity.
 
Automated Storage and Retrieval Systems (AS/RS)
AS/RS is a computer-controlled hardware system that can handle, store, and retrieve materials from large storage spaces with precision accuracy and constant performance.
 
Automated Guided Vehicles
AGVs are autonomous vehicles which are guided with the support of multiple technologies like – vision sensors, radio waves, magnets, floor lines/wires, etc., which can help in quick movement/ carry of inventory around the warehouse.
 
Organisations are adopting these based on their needs to meet business/customer expectations. We should also consider the fact that companies need to have such a large scale of operations in order to get significant benefit from implementation of these technological advancements considering the capital efforts involved in such transformation initiatives.
 
How is robotics in general, AMRs/AGVs in particular, supporting these endeavors?
Robots like AMRs and AGVs support the material movement requirements within a warehouse. The advantages that they offer are long run cost savings, enhanced safety, and increased productivity through efficient and effective working. It involves one-time capital expenditure in comparison to perpetual labour costs, resulting in long run savings. These robots are programmed to work safely without any human intervention, hence eliminating chances of safety violations/accidents. Most of the repetitive movements within a warehouse can be automated and having robots bring in a systematic approach to material movements. This also results in increased productivity by eliminating inaccurate and excess movements which are possible in case of labour, with the ability to work almost non-stop. It also eliminates the requirement of training/skilled labour as the program can be extended to any number of robots to increase output/performance and eliminate inefficiencies due to untrained labour.
 
Digital transformation of Intralogistics is incomplete without corresponding change in Warehousing as well as Shipping & Distribution. How are these segments performing together?
Digital transformation in logistics when integrated with shipping and distribution involves integrating information exchange on not just on the material/package but a lot of legal, safety, contracts, shipping clearances and payment documents which increases the complexity and involvement of a variety of stakeholders. Hence there are multiple entities/systems that must come together for the successful integration and execution of the same. In order to enable complete digital transformation, information exchange and an interface supporting all the necessary portals with quick exchange of data becomes pivotal for this revolution.
 
What are the software platforms available that facilitate this transformation?
Digital transformation platforms are a class of tools that facilitate the digitalisation of different tasks, processes, and workflows.
 
Digital transformation examples include IT modernisation such as switching to a cloud environment, being remote-ready, reskilling employees, implementing automation to accelerate customer support and service, and using AI-driven insights to enhance sales efficiency.
Some Digital transformation platforms available are:
a. E2OPEN: E2Open keeps everything in one place on the cloud, including inventory, logistics, and production. Simplify and upgrade the supply chain with infrastructure that is scalable and creates an end-to-end orchestration. E2Open providesUnified analytics, AI driven applications, and Decision-grade live data with a unified user interface.
b. Mule Soft: Mule Soft is an integrated API platform that integrates data from multiple sources for a variety of projects with MuleSoft’s Any point Platform. Business customers see dramatically improved efficiency with automated workflows and SaaS Integration.
c. APPIAN: Appian’s digital transformation platform uses the newest business platforms for more efficient operations and customer applications. The result is an improvement in operations, a reduction of risk, and enhanced customer experience. Appian leads the way with a Business Product Management engine that automates workflows.
d. Hackett Group’s Oracle: The Hackett Group’s Oracle Digital Transformation Platform (DTP) leverages more than 100 applications for a complete digital transformation.
e. BPM-D: The BPM-D is a cloud-based tool that facilitates prioritisation and alignment of strategies with processes that improve efficiency.
 
Apart from the above there are many more platforms/tools to support digital initiatives for warehousing and transportation like SAP EWM, Ramco, Korber, E2Open, Mercurygate, Panda, etc.
 
How is 5G impacting the logistics and warehousing scenario given the importance of connectivity in IIoT based automation?
The logistics and supply chain business are dependent on timely information at the demand and supply end of the complete channel. To be able to do this on time you require data speed to transfer information between the different IT modules inside the warehouse.
 
5G promises higher bandwidth on-demand with the following benefits to logistics, supply chain, and warehousing entities:
a. Faster speeds to make information flow between different IT modules in the warehouse environment seamless.
b. Warehouses will be equipped with sensors and actuators that will send small packets of data to private centralised data clouds in great quantity (volume), in massive variety and at great speeds. A network that will almost in real-time help use this data for better processing and creating quick actions would become the need of the hour – 5G promises to be just that network.
c. The new 5G network is seen as the main enabler for the Industry 4.0, where the growth of Artificial Intelligence (AI), Augmented/Virtual/Managed Reality (AR/VR/MR), 4K Video Conferencing, Machine-2-Machine communications, use of Robots to serve the emerging needs of the industries from Utilities, Retail, Transportation and Logistics to Healthcare.
d. 5G standards have 8 core requirements covering Data throughput, high device density, reducing energy consumption, high availability of network and cyber security.
 
(The views expressed in interviews are personal, not necessarily of the organisations represented)
 
Arun Salvi is a Supply Chain professional with over 30 years of experience in diverse industries and geographies across Asia Pacific and India. Arun currently Heads SCM at Reliance Petrochemicals and has earlier had stints with UltraTech Cement, Shell, Asian Paints, LH Ambuja and VIP Industries. Over the years, he has worked in SCM Strategy and all areas of SCM operations. He is a passionate leader with interest in leading Transformation of People, Processes, Digitisation and Safety.