Industrial Automation Magazine India

Supply chain industry today relies heavily on digital technologies

Published on : Tuesday 30-11--0001

Smart forklifts, AGVs, autonomies mobile robots – what are the news trend in material handling?

Smart fork lifts, AGVs, autonomous guided vehicle or autonomous mobile robots will transform the industry, slowly but surely. This will enable the rise of such kinds of new material handling technology permeating into all aspects of our daily lives over the coming two decades.

Ecommerce growth has risen sharply in India, which has necessitated operational efficiency with demand for 2 days’ shipment or even same day delivery for online orders. Advanced material handling equipment really helps, besides being cost effective, assisting in smooth order picking, real time tracking, and many more order processes.

Though new material handling equipment are rigid and require infrastructure modifications, these increase efficiency. However it will gradually make a transition towards infrastructure-free and independent autonomous navigation technology, also creating more specialised jobs such as robotics engineers, software developers, technicians, sales engineers, and operators.

In short, the prospects for material handling equipment sector, are bright in India.

What should be the ideal mix for efficient in-plant material handling?

Material handling techniques used definitely affect plant operations so there is need for better design and layout of the plant. Lower cost methods can be designed and installed only if material handling is considered an integral part of plant layout. In plant material handling is mainly useful for raw material handling, work-in-process movement, parts/tooling delivery, finished goods movement, removal of waste to recycling, etc.

Material handling equipment need also arises when materials to be handled are beyond the physical capacity of the workers. These help move, store and protect the materials. Equipment like smart forklifts, conveyors, mobile robots, AGVs, etc., also increase the efficiency of workers.

In finished product delivery to achieve diversion of goods and automatic collection of goods volume and weight need to integrate the sorting line, hoist, industrial cameras and other material handling equipment. Robotic systems are used for transporting goods throughout a warehouse or a plant or for the movement of products on an assembly line, thereby enhancing the efficiency.

The traditional warehouse is being transformed dramatically – what are the implications and lessons here?

There is a huge difference between traditional manual methods of material handling and the new high-tech and automated equipment, the latter bringing many advantages. New technology equipment like AGVs and mobile robots are ideal for today’s 24/7 manufacturing and distribution operations. However, while designing warehouses for automated systems, there is need for deeper visibility into process and people to make it a success, like integration of system into RCS and WMS for smooth functioning of different departments.  

Traditional warehouses and supply chains have challenges on scalability because many of the industrial robots currently on the market have simply updated and modified from technologies created five to ten years ago. They fail to adapt to the warehouse and factory demands required in an Industry 4.0 and IIoT (Industrial Internet of Things) environment. So organisations need to ensure they are fully prepared for modernisation if they want to get the most out of their investment.

How is the Supply Chain Process impacted by Digital transformation?

The supply chain industry today has entered the digital era, relying heavily on digital technologies to ensure accuracy, delivery and optimisation. A recent study conducted by McKinsey revealed that the supply chain industry had the lowest level of digitalisation out of five sectors, standing at a modest 43%. However, this is set to change with technologies such as the IoT and machine learning transforming the industry, and software revenue in supply chain management is forecast to exceed $19 billion by 2019 end.

By using big data solutions to properly manage an influx of data, supply chains can be rapidly enhanced by improving efficiency, cost optimisation, responsiveness and greater integration. Using digital technologies to drive transformation in supply chains is becoming increasingly popular.

However, the more digitalised a supply chain becomes, the more at risk it becomes to cyberattacks. As a supply chain grows on a global scale, this will mean trusting elements of the chain to third-party suppliers, which – if not properly mitigated – can have severe repercussions. It is essential for a business of any scale to have a proper cybersecurity policy in place to effectively manage and mitigate risk throughout their supply chain network.

Is the right time for enterprises to outsource supply chain management to professional organisations? 

With new government initiatives like Make in India, GST implementation and the emergence of ecommerce, there has risen the need for efficient warehousing and supply chain. Things like customer service, parts shortages, unprecedented inventory growth and warranty management can take up internal resources and affect profit margins, especially if it is preventing one from focusing on the business. So it is definitely right time for enterprises to outsource their supply chain management (SCM). In fact having such outsourced service, eCommerce sellers can now pay more attention to their core competencies rather than spending all their time and assets managing logistics.

Effective Supply Chain Management has become an essential component for business success, since it translates to healthy inventory levels and fast, reliable delivery, which are critical to uninterrupted business and happy customers.

Outsourcing SCM has several advantages that work towards maximising profitability at the end of the day. However, these advantages can only be realised when you hire a reputable logistics provider. Occasionally, taxes, shipping costs and other hidden fees may get out of control. Some 3PLs have multiple hidden costs, such as labelling, pick and pack, boxing, and more. To avoid this, work with providers that are transparent with their costs so you can protect your profit margins.

It’s up to eCommerce sellers to decide which solution is right for them. Risk and reward comes hand-in-hand, but if they do proper research and select the right partner, they will be able to streamline the eCommerce business and focus on growth.

Warehousing in India is still in the early stage of automation barring some e-tailors. What are the barriers here?

Recently Walmart-owned Flipkart has deployed around 100+ robots in one of its delivery hubs in the outskirts of Bengaluru, India to help sort packages and streamline its supply chain.

It is able to sort nearly 4,500 packages in an hour which is reportedly ten times more than a single human would achieve at the same time. The product throughput can also be increased by five times with minimal increases in infrastructure and the addition of more robots.

However, running a fully automated warehouse is at least a decade away because of the superior cognitive abilities of humans, limitation of current technologies and less cost of manpower or labour in India. Abundance of labour’ and relatively low wages meant slower adoption of automation in India

KK Dakhara is a management professional with 13 years of rich experience in the Retail Industry. He currently heads Retail, Logistics, Warehouse, and Gems & Jewellery Vertical in Prama Hikvision India. With his vast experience, he contributes to Hikvision’ s R&D effort. His forte lies in developing India specific products and solutions for Security and Business Intelligence.

His focused approach coupled with extensive experience in the retail industry has helped in designing innovative security solutions. He has contributed majorly in developing Gems & Jewellery specific Hikvision product range, which is helping to secure Diamond & Jewellery Industry. Currently he is developing a new security solution for the logistics and warehouse segment. He is also actively involved in spearheading the Artificial Intelligence (AI) based analytics solution and product range for Retail, Logistics and warehouse segments.

Prior to Hikvision, KK Dakhara has worked at some of the leading security industry companies in India and handled various product portfolios in Security, RFID, Automation, Fire and Safety domains.  https://retechcon.com/speakers/kk-dakhara/