What Supply Chain IT Managers Are Looking For Under The Tree This Year
By Sally Miller, DHL Supply Chain, North America
There’s good news and some not-so-good news for supply chain CIOs and IT managers this holiday season. The good news is the holiday shopping season continues to creep earlier into the year. It now unofficially kicks off around Halloween, and Black Friday specials routinely run for weeks instead of a single day. Even Cyber Monday isn’t the event it once was as consumers now have the confidence to shop later in the season and still receive e-commerce orders before the holidays.
Why is that good news for supply chain IT managers? Because the longer, less event-driven holiday shopping season isn’t subject to the dramatic peaks in demand that can stress supply chain systems.
Now for the not-so-good news: regardless of when they are shopping, consumer expectations continue to rise. Whether it's a seamless experience between online and brick-and-mortar channels or the desire to receive e-commerce orders the next day—even if the order is for a gift that won’t be given for several weeks—consumers continue to inch the bar higher and higher in what they expect from retailers. Those changing expectations are driving the need for new supply chain technologies.
With this backdrop, supply chain IT managers and CIOs are building their wish list for the coming year. Here are some of the top items we expect to see on those lists:
- Robots
Kids aren’t the only ones hoping for a robot under the tree this year. Collaborative robots are already working in many warehouses—DHL Supply Chain alone has deployed more than 300—and they are proving their value and expanding the tasks they can perform. From robot-assisted picking to carton handling, robots are reducing cycle times and increasing productivity in warehouses of all types and sizes.
Beyond increasing speed and productivity, robots are delivering an unexpected benefit to the warehouses where they are deployed. Anecdotal evidence suggests that those warehouses have an easier time attracting and retaining workers. We are seeing that warehouse associates want to work alongside these robots. That’s a little surprising until you consider that robots can save associates miles of travel time each day and minimize the need for heavy lifting.
- Cross-Channel Inventory Visibility
Today’s consumer expects to move seamlessly between online and brick-and-mortar channels. That means supply chains need near real-time visibility into all of their inventory—in the stores and across the supply chain—to remove the “speed bumps” between channels and deliver the services consumers expect, such as ordering online and picking up in store. Those that don’t have this visibility already need to get it soon.
- Smarter Shipping Software
There is a balancing act going on in many supply chains today as organizations weigh the cost of opening new distribution centers closer to customers against the cost of the expedited shipping required to meet faster delivery requirements for customers outside a certain geographic area.
Smarter shipping software, coupled with the real-time visibility into inventory I already mentioned, can enable an organization to delay significant capital expenditures while still meeting customer expectations. These systems, supported by sophisticated business rules integrated into the e-commerce engine, give customers more control over their delivery options. For example, retailers can offer remote customers a small discount for choosing a slower delivery option and save themselves some money in the process.
- Augmented Reality
Augmented reality is another productivity-enhancing technology that has already been integrated into the warehouse by forward-thinking organizations. Working with complementary technologies such as voice picking and automated guided vehicles, these heads-up displays represent the next generation of operator interface to the WMS. As with robots, warehouse associates appreciate the ability to work with this emerging technology and the benefits it provides.
- 5G
This is certainly an ambitious wish for 2020, but 5G is on the horizon. IT managers with responsibility for the supply chain understand 5G’s potential to improve operations in the warehouse and beyond. In the warehouse, 5G can extend data collection beyond material handling equipment to include warehouse workers through the use of wearables, creating new opportunities for process optimization. Outside the warehouse, 5G promises to bring a whole new level of visibility to goods in transit.
Not all supply chain managers will get everything on their wish lists this year. Staying up to date with the various technologies required to meet changing customer expectations can be a costly and time-consuming proposition. One alternative is to work with a 3PL that has the scale and expertise to support robust management systems and to evaluate, pilot and implement emerging technologies as they become viable. This type of partnership can help your organization improve service levels without breaking the bank for new technology.
About The Author
Sally Miller, CIO, DHL Supply Chain, North America, leads the regional Information Technology (IT) organization and is responsible for the global Transportation System and Integration centers of excellence. Sally earned a bachelor’s degree in Decision Sciences and Operations and Systems Management from Indiana University and an MBA from the University of Notre Dame.