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Automation and the bottom line

Automating business transactions can reduce costs and improve decision making

By André Pino -- Industrial Distribution, 8/1/2007

Many companies purchase solutions to automate corporate functions and improve decision-making capabilities. Because these systems depend on data created and collected throughout the supply chain, accuracy is imperative for the planning and execution systems to operate properly. To ensure data accuracy, companies use extensive—and expensive—procedures to collect and process the data.

These companies are faced with the growing complexity of supply chains, the increase in the amount of data, growing costs and the struggle of integrating the shop floor with ERP systems. Often, many disparate systems are loosely integrated using costly procedures that don’t provide the information needed to make accurate business decisions. These cumbersome procedures, such as scanning bar codes, are performed by shop floor employees, which is often a costly proposition.

By focusing on automating business processes, coordinating workflow and integrating devices, sensors and equipment on the shop floor, companies can reduce errors during data entry and convert manual processes into “headless” operations. This provides real-time information, better visibility, improved decision-making and allows for further efficiencies throughout the supply chain to reduce operational costs.

Why is integrating devices important?

When automating a business process, all aspects must be considered. An order is rarely picked and shipped in the same process, meaning the multiple pick-and-ship processes used to get the order to the shipping door likely involve a variety of devices and technologies. Integrating these devices and processes ensures that data is accurately captured, meaning employees don’t have to manually scan bar codes. This not only speeds up the process but reduces the costs associated with errors.

Process automation is key

Process automation must manage and coordinate all data collection devices (for example, bar codes, RFID devices, weight scales, palletizers, etc.) that capture business data, as well as employees’ activities on the floor. As the ERP system initiates a process, information is passed to the floor to determine the order of the workflow and to direct employees about what to do and where to go (via hand-held devices). As workflows are completed, the event data must be processed and completed business events sent back to the ERP system.

What is needed for process automation?

First, all equipment and human resources must be integrated and the devices and steps in an operational process must be synchronized. The ERP system must be able to support this integration and be flexible enough to adapt to any process changes, new facilities or new technologies it encounters. And the process must be able to run when the ERP system isn’t available.

Realizing the benefits

Automating these processes can provide many of the business benefits manufacturers and distributors are always seeking.

These benefits include the ability to respond to changing business conditions with real-time, accurate operational data; improved supply chain agility; the elimination of “islands” of automation and any “black holes,” or lack of automation, in between; streamlined product movement; reduced product and process errors; improved insight into execution-level activities and performance across the enterprise; and reduced operational costs.


Author Information
André Pino is vice president and chief marketing officer for Acsis Inc. He can be reached at (856) 673-3000.

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