Covid brought the supply chain to a screeching halt in 2020, teaching hard lessons about single-source suppliers and dependency on labor.
Today, manufacturers and distributors are focused on enhancing their resiliency and preparing for future disruptions with technologies like AI, big data and analytics.
“There was an exodus of a big portion of the workforce, with a lot of Baby Boomers retiring or set to retire right around the time of Covid,” said Carolina Handling COO Joe Perkins during an interview with Rick Jenkins of Let’s Talk Business SC. “They created this gap in the workforce that, quite frankly, we haven’t filled yet and I don’t know if we’re going to be able to fill it.”
Many manufacturers also had to halt production because they couldn’t obtain certain parts, which was especially true for those that relied on overseas suppliers that were closed for longer periods of time due to Covid restrictions.
Today, technology is revolutionizing supply chain management by automating processes, improving visibility, enabling real-time data analysis and enhancing communication.
Leveraging AI
For example, the industry is leveraging artificial intelligence to create efficiencies, such as chatbots that assist with information dissemination and order placement.
“The supply chain experience starts from the point of purchase,” Perkins said. “Many retailers are using AI to give you visibility as to the products you may be purchasing from them – such as how a table would look in your home or office. That helps drive sales and prevent returns.”
On the material handling side, AI is being used in routing optimization to efficiently and effectively move products to achieve better fuel consumption or the correct labor ratios. AI technology is used in mobile robots, which have sensors and other technology to identify surroundings and help them move throughout the environment. In manufacturing, AI-powered robots are used for production line automation, product assembly, quality control and logistics.
AI also is being used to observe production and manage the ordering of raw materials to achieve just-in-time delivery.
"We’re not landlocked here in the Southeast, but in many areas of the country, the footprint of a building can’t be expanded, so companies can’t carry excess inventory,” Perkins said.
There is even AI technology that leverages lithium and solar power to reduce energy drawn from the grid.
Big Data and Analytics
Data and analytics provide visibility relative to the movement of goods – something that the supply chain lacked for a long time, according to Perkins.
From point-of-sale to weather patterns data, understanding how, when and what consumers may purchase helps manufacturers control inventory on raw materials and helps retailers control inventory of finished goods.
For manufacturing and distribution centers, telematics data is used for forklift fleet management, labor management and to predict future disruptions.
“There are so many data points that can be used with forklift telematics,” Perkins said. “Some of our guys have written code that takes the failure points that are being processed in the background to predict failures that may be coming with that truck in the future. We can dispatch a technician to make the repair, hopefully preventing that customer from having a breakdown.”
This image from the iWAREHOUSE Telematics Gateway shows vehicle usage over a one-month period (Delta) 8/7/2023-9/6/2023, as well as usage over the life of the unit (Actual).
Reverse logistics
Another element that can be disruptive to the supply chain is reverse logistics, the process of returning products from end users back through the supply chain to the retailer or the manufacturer.
“The big thing for a lot of our customers is getting it right the first time,” Perkins said. “We’re seeing a lot of technology that is based around the people that are picking the orders and shipping these products, whether it’s voice-based technology or RF (radio frequency) scanning, to ensure 100 percent accuracy.”
Optimize before you automate
For companies considering implementing integrated systems that improve productivity and efficiency, Perkins stresses optimizing before automating.
“There always is an opportunity to remove waste in processes,” he said. “We typically start with a lean assessment to look at processes. Once we’ve done that, we look to automate.”
Many automated processes and equipment are put in place to reduce travel, such as workers walking long distances throughout the day to move products throughout the warehouse. That equipment might be a conveyor system, automated forklift or mobile robot.
“At Carolina Handling, our identity has really become that of an integrator that pulls together all the aspects of what we do to create an ecosystem around a customer’s supply chain so that they are fully functioning and as efficient as possible.”
For more information, visit carolinahandling.com/automation.
