Automate asset management to boost supply chain visibility

Supply chain precision is no longer a nice-to-have component. If operators wish to remain competitive in the global economy, it is a managerial imperative they remove time-consuming, labour intensive management processes.

If part of the supply chain is inaccurate, huge amounts of money, time and resources will be wasted trying to solve the mystery of misplaced assets. That has always been the case, but as an increasingly globalised marketplace surges in competitiveness, failing to meet supply demands not only inflicts huge service level agreement (SLA) financial penalties on the supplier, but it can also send customers to more reliable providers.

Let us begin by using reusable transport containers (RTCs) as a broad example throughout this article. 

Any operator knows its profit margins lie in-between the RTC identification process and eventual delivery. Furthermore, these margins decrease over time the longer a shipment is stuck in limbo. As a result, common inefficiencies like cross-referencing available containers against those that are already allocated can have a knock-on effect on customer satisfaction down the supply chain. 

If shipments are not where they should be at the right time, a company’s reputation can quickly nosedive. With operators needing to balance costs, time restraints and productivity while still guaranteeing the above, it means any asset inaccuracy quickly throws the balance out of sync. 

RTC management

Traditionally, the micromanagement of every RTC (including vehicles, crates, boxes, containers, bins, pallets, etc) has been controlled by manual inventory processes, or for some logistics companies, with barcode technology and field-deployed handheld computers.

In such a fast moving global economy, this approach has quickly become outdated, inefficient, costly and inaccurate.

An automated solution provides an alternative. There are two components behind every automated system – the tagging of assets and the real-time reading of their location (and supplementary information). Creating a live picture of the logistics yard is a powerful moment for any manager – operations instantly become clearer and management can begin optimising the yard.

Active RFID sensors and tags are the most suitable option – their lifespan is extremely long, they are robust, can be easily implemented and they do not interfere with other wireless technology. Furthermore, the information they provide can be delivered to a range of devices; handheld and desktop.

Even better is the fact this newly acquired visibility is not constrained to the operations room – it can be delivered to every manager across the yard. RTCs can be filled with the right items in the right place at the right time with complete accuracy. Time inefficiencies are quickly stamped out and delays eliminated.

This granular visibility delivers even more advantages – greater asset control, manpower reductions, planning improvements, stronger quality control, better customer service and easy deployment.

Full visibility
For example, with full visibility staff can be re-deployed to profit-generating activities rather than fighting asset-related location fires, not to mention the significant reduction in human error that accompanies a technological solution.

There is also the historical benefit that opens up management possibilities. Having access to historical data on every asset allows operators to strategically plan for capacity and evaluate additional operating factors. Stock requirements become more accurate, RTC related losses decrease and safety-stock volumes can be reduced. Moreover, companies can better meet green / sustainability guidelines by significantly reducing unnecessary RTC relocation.

Essentially visibility is about gaining control; a factor felt as far down the chain as the customer and the service they receive.

And for those companies thinking tagging every asset sounds like a burdensome task, the reality is the complete opposite. Tags can quickly be affixed to mission-critical RTCs while readers can be deployed to storage areas and gatehouses.

This can be done either as a stand-alone system or easily linked to existing asset management, yard management or warehouse management systems – a flexibility that ensures existing investment is not wasted.

Whichever the implementation choice, the supply chain can no longer be partly or completely manual anymore. It has to advance inline with customer expectations. Thankfully operators do not have to wait for the technology to catch up – it is already available and waiting for deployment. It is just a matter of making the choice to enable full real-time asset visibility.