With a shortage of labour and the continuing growth of online shopping many logistics companies are finding the solution in automation.
A recent survey by Logistics management found that 60% of businesses are planning to upgrade their systems or purchase new equipment within the next 12 months.
There is a realisation that standing still actually means losing ground to the competition.
There are two major reasons for automating systems within warehousing.
Accuracy – by installing automated processes the on-time delivery percentage is increased by 50% giving an overall on-time success rate of 94%.
Cost Savings – by reducing the need for manual labour and by reducing the error rate will save money on costly returns processing.
The next two to three years look like becoming the era of increased take-up of software systems and distribution centre automation.
So, who can you turn to if you want to automate?
The Logistics Improvement Group, an amalgamation of 3 successful logistics consultancies, specialises in advising businesses who are looking to go down this route.
With over 40 years of experience the Group can help with:
- Distribution Centre Automation
- Business Transformation
- Programme and Project Management
Distribution Centre Automation
An automation project typically involves eight stages:
- Procurement – vendor selection and contract negotiations
- Mobilisation – managed by a dedicated project team (client personnel, vendors and LiG consultants)
- Design – managed via a series of workshops throughout the process
- Build and commissioning (of DC and equipment)
- Operation Preparation and training – management structure and controls
- Testing and readiness planning – systems, equipment and colleagues
- Go Live with cut over management – issues logging, mitigation and resolution.
- Benefits realisation
LiG’s application of these processes has delivered many successful projects .
Business Transformation starts with a business case, which requires a significant degree of data analysis, financial assessment and presentation to the Board of Directors for approval prior to any programme being launched.
The transformation process needs to be managed within a governance process that is supported and sponsored by the CEO and board.
The management of the programme then requires structure, with milestones agreed and a project team(s) constructed with clear and accountable objectives for each workstream lead to deliver with their teams.
Clear and attainable dates need to be agreed and ‘Go live’ should be realistic, with well planned training and preparation and a decision criterion for Go/No Go.
Appropriate contingency plans should be developed as part of the overall approach with funds set aside in the overall budget that can be drawn upon if required and after exercising approval processes.
LiG has many years of experience in this area and will manage the process while the business carries on as normal.
Programme and Project Management
LiG manage projects using standard project methodologies but also bring their own personal experience of working with people, to facilitate the changes required, which is ultimately always the key requirement for success.
LiG are just a phone call away from being able to help you with any of the above. Just call 020 4587 5487
Move, improve or automate