Prological’s managing director, Peter Jones, explains how matters of automation, people, and data were central to CeMAT 2024.
There were three take homes from CeMAT 2024: automation for small businesses is now real; the importance of data continues to grow; and the supply chain is still a people business.
With 28 years in the supply chain industry under my belt, I am excited to see how much more there is to learn. The event only confirmed the complexities amid the ever-broadening array of possibilities, not only emerging but available today.
This year I believe I saw the largest transition in ‘intra-logistics’ capability, the most uniform communication from the event’s Knowledge Theatre and saw greater possibilities to improve supply chain capability – especially smaller businesses.
Expanding on the three key takeaways at CeMAT 2024, I’d say that:
• Automation is evolving and is becoming more accessible for smaller operations.
• People are still at the centre of supply chain. There’s an evolving awareness that with the emergence of the digital supply chain, compounded by automation, the people-related issues in supply chain have to evolve with these changes.
• Data. It’s got to be clean and accessible, ready to be turned into information in minutes – not weeks.
AUTOMATION
We have all seen the Tier-1 materials handling companies performing incredible automated tasks with Auto- Guided Vehicles (AGVs), Automated Mobile Robots (AMRs), auto-stores, pallet shuttles, Automated Storage and Retrieval Systems (ASRS), and so on.
Tier-1 companies with these tools have separated themselves from the pack previously, with smaller organisations longing for such capability in smaller, humbler facilities. This year’s event displayed a new reality in that automation is no longer the domain of large companies, but accessible and value adding for many small companies. The world has changed.
I saw cost accessible automation that will work in 1000 sqm and 1500 sqm warehouses, with store product at high density from floor to roof in multiple-sized totes, enabling fast and accurate picking and packing.
Also, there are modularised sortation systems that can be installed and up and running in just hours.
In 2023 I received a question from the floor after I had spoken – “what about the small businesses?” What a difference a year makes. In 2024, there is no shortage of smart automation options for smaller operations.
Today, there is a plethora of smaller, entrepreneur-led firms armed with mechatronics degrees, bravery, and the tenacity to deliver automation capability to transform smaller businesses. An expanding business inside a 1500 sqm warehouse now mightn’t need to move into the 3000 sqm warehouse to grow; automation solutions targeted at these businesses might now be the better stepping stone. Automation for small business in small warehouses is now real, and Prological is excited to see where these improvements lead.
PEOPLE
Because automation was such a big theme on the exhibition side of this year’s event, it was only natural that the impact on people would be a major topic from the Knowledge Theatre.
I heard many speakers discussing the impact of digitisation and automation in the supply chain on people. While re-affirming the reality that supply chain is still a people business, there’s no doubt that some of these people, moving forward, will be different to the people of the past.
Transitioning a facility and its team from traditional warehouse practices to a more automated environment will require investment in training and patience.
Some people mightn’t transition well, while others will thrive in the opportunities, finding new possibilities for themselves in the new roles required.
Mechanical and electrical engineers will become part of the supply chain team, software engineers and robot technicians will be added, while the skillset of those ‘on the floor’ will change.
Several attendants and speakers at CeMAT discussed the importance of the transitional leadership team to prioritise the people in at least equal measure to the operational transition.
It’s easy to see the new shiny toys in the warehouse – it’s much harder to see the early signs of stress and concern of those who have enabled the operation to evolve to this new state but are not sure about what their future is in this ‘brave new world.’
DATA
I live in Wollongong. Do you know how many ways there are to misspell Wollongong? If your customer data base has more than one way something is represented, that is a problem. We have all seen or heard of instances where a street has been labelled an avenue, or a package has a post code for the right suburb, but in the wrong state. When we get to our product master files, typically it is even worse.
Master data files with these errors make it more difficult to turn data into information, and in too many businesses, this creates an impossible situation. This was brought home with great strength by two speakers.
Michael Kemeny, Managing Director of Knapp Australia, spoke of the importance of data as it relates to progressing your operational environment, specifically your product master file and order files.
Product master and order files must be complete and accurate to both specify and design any automation additions to your warehouse to enable quick and accurate decision making within the business.
Frank Bucolo, Country General Manager from Slimstock, spoke at length about the data rich, but information- poor environments he sees as his firm supports businesses and takes a fresh perspective on inventory management.
The clear message from both was the importance of quality, complete and accurate data.
Both speakers emphasised the importance of high-quality, accurate data when undertaking changes to warehouse operations and inventory management, and how for those projects to succeed, data must be transformed into empowering information to be understood by decision makers who may not be logisticians
Over the next five to seven years, two categories of supply chain execution will emerge. The table below by McKinsey suggests that we are at a fork in the road to the future.
One path leads to success and will be full of businesses that get data, people and automation right. The other group will be diminishing in number and will be known as the ‘have nots’ because they didn’t get this transitional season right.
If you would like to investigate any of the above for your business, please contact Prological Consulting here