Organizations worldwide are entering new territory when it comes to doing business. In the aftermath of a global pandemic, companies are grappling with a variety of fluctuating circumstances, including supply chain shortages, workforce issues and heightened digital customer demand.
The Amazon effect has drastically impacted the way companies function and their ability to grow with an eye toward the future. Digital automation is no longer an option and forward-thinking companies must lean into mobile technology to stay ahead of the competition.
The absence of true data visibility results in delays, inventory shortages, and labor challenges across the supply chain. Organizations must train a strategic eye on their inventory management to embrace digital first insights, focusing on accuracy, speed, reliability, and flexibility.
Improving supply chain functions is a pivotal first step in embracing digital automation. These four steps will help you improve and adjust to inventory challenges in real-time.
Create a Mobile, Digital Supply Chain Record for SAP Inventory
Automation begins with accurate, up-to-date data. Yet few SAP users have embraced mobile technology to help improve supply chain function. ASUG research shows that 75% of SAP supply chain customers have not implemented mobile devices to monitor current inventory. Further, only 25% have access to inventory levels through a mobile device.
Data-driven insights gathered through mobile warehouse technologies, like mobile barcoding, are fuel for your automation efforts. As SAP moves to cloud-based infrastructures, so must mobile data collection through scalable architecture, robust workflow processes, and seamless integrations.
A digital-first mindset begins at the inventory level. Mobile barcoding technology can replace manual inventory tracking methods, achieving real-time visibility and control of inventory types. The result? Increased efficiency, accuracy, and productivity in the warehouse, all while mobilizing your SAP.
Hand-held barcode scanners streamline data collection via automated identification and data capture. Coupled with mobile solutions, organizations can expect high quality data collection at the point-of-work. This leads to faster, more efficient workflows with machine-level integration.
For
Carlisle Interconnect Technologies, barcoding was a needed improvement to ensure accuracy in the raw materials warehouse, the manufacturing floor and the shipping department. Warehouse employees now utilize mobile devices, including barcode scanners, to automate routine warehouse and plant floor transactions. Carlisle has seen increased receiving speed of up to 40%, reduced staffing costs, and improved accuracy of raw materials above 99%.
Focus on Real-Time Tracking and Traceability
Increased visibility across an organization is key to improving financial performance. In fact,
63% of manufacturers plan to increase tracking in the next few years. Yet only 24% currently have the technological capability to achieve that type of metric.
Investing in asset tracking software, like mobile inventory management, can help reduce overhead costs and boost productivity. Workers can complete orders directly via a mobile device, updating your SAP systems instantly, even while they’re in the field. This kind of real-time reporting not only helps ensure compliance, but it also results in better utilization. Mobility solutions allow you to look up an accurate list of the location and condition of each inventory item directly from your point-of-work.
Grupo Cementos de Chihuahua, a cement company, faced major challenges with spare parts inventory for maintenance, repair and operations. The spare parts inventory was recorded by hand, causing discrepancies almost immediately between what was written down and what was entered into the system. As a result of these inaccurate inventory reports, the warehouse had to stock more parts to prevent shortages, a considerable oversight and investment at the cement plant.
To rectify the issue, the company adopted a suite of pre-built, pre-validated mobile applications. The solution enabled Grupos Cementos to gain real-time mobile inventory tracking and visibility with perfect accuracy for their spare parts warehouse.
This is only one of the ways mobile inventory tracking capabilities can benefit your organization. Mobile technology can also help boost productivity by 40% on average. Techs can complete a variety of asset activities, including monitoring inventory status, completing reports, printing labels at point-of-work, and on location check-in/check-out by user. This type of field productivity helps your organization make informed decisions instantly to stay competitive long-term.
Leverage SAP for Modern Data Collection in Inventory Management
While manual inventory processes are a constant plague for many SAP users, there’s also another challenge: the aging system. Do-it-yourself technology that does not optimize data collection can lead to reduced reliability and lack of functionality, impacting critical daily operations.
Companies must fully leverage their SAP for reliable, efficient data collection in inventory management and supply chain integration. To begin, ask yourself:
- Do I have real-time visibility into my inventory?
- Does my warehouse team have the information they need, when they need it, right in their hands?
- Do I have to constantly modify our SAP to get a flow of real-time, bi-directional information into the system?
Maximizing the value of your enterprise systems and processes begins with rectifying slow, inefficient warehouse automation systems. Just ask
Schwing America.The concrete construction equipment manufacturer was plagued by slow systems that hindered critical operations. By adding a barcoding solution that integrated into their SAP systems, Schwing America was able to see material availability directly from a mobile device and the transaction was immediately recorded in SAP.
This type of elevated approach, has led to increased reliability, speed, and picking accuracy as well as improved data analysis and effective labor utilization.
The Power of Your Workforce is Essential to Optimizing Inventory Management
One of the key issues arising from the pandemic involves the impact on the workforce. Many companies across multiple industries are grappling with severe labor shortages and how they’ll make ends meet with limited staff.
By automating your processes and digitizing your data, you can ultimately do more with less staff when it comes to warehouse and inventory operations.
Manual processes cost you time and resources. Paper inventory tracking, or working with systems that are not fully optimized, will cause more than a headache. Ultimately every minute an employee spends on unnecessary processes is a moment away from your core business functions.
Mobile technology and barcode scanners create an easy-to-use interface where workers are no longer tethered to one location. Hand-held scanners have
been found to increase employee productivity by 450%, enabling fewer employees to process the same number of items in less time.
A full mobile data collection suite, coupled with a robust employee onboarding program, not only ensures your employees are safely situated in a warehouse setting, but also ensures that you can achieve real-time visibility for your critical inventory management needs.
Amplify Your Inventory Management with Digital-First Thinking
For many SAP users, the struggle with implementing a new system comes down to cost. After all, purchasing and onboarding a new system or set of technology represents a substantial investment. However, the cost of not doing anything far outweighs the cost of any new system or system updates.
A digitally enhanced and optimized mobile supply chain drives efficiency, agility, and future growth. It helps shift focus from resource drain to process automation, leading to better data and real-time SAP integration. The result is a transformed supply chain and inventory-focused operation built for success.