Guest Post: 4 Reasons Material Handling Needs Automation and How to Implement It

Today’s post is courtesy of Megan R. Nichols

When it comes to the supply chain, the most visible processes and events aren’t necessarily the only areas that should be modernized and improved upon. The so-called first-mile is just as important as the last, even though consumers may never see or hear what it entails. Collectively, every mile plays a role in the performance and efficiency of manufacturing and wholesale operations.

By streamlining the entire lineup, it improves the speed, quality and accuracy of all products and services. One of the best ways to make that happen is to deploy automated systems and equipment, including advanced robotics. These solutions never tire, burn out or falter — so long as they are maintained well, quite unlike human laborers.

Beyond the basics, there are several reasons why automation should be used in material handling and manufacturing environments.

Why Use Automation?

1. A Smarter, Connected Environment

Whether you’re talking about manufacturing processes directly, the handling of finished goods or distribution closer to the last mile, all these practices could benefit from more data-driven operations.

Implementing IoT and connected technologies earlier on can also help eliminate what’s known as the islands of automation within a facility. Most older machines and solutions operate in a siloed nature, separate from other components within a factory or facility. Automation and the resulting systems can help do away with this entirely, creating a more synchronous environment.

2. On-Demand Manufacturing and Services

In today’s hyper-fast and hyper-personalized environment, most customers and clients expect a degree of convenience, which can be difficult to provide in material handling and processing fields. To achieve this, the entire system needs to be optimized from start to finish. Queue advanced automation.

The connected nature of the autonomous factor also generates the on-demand concept for internal processes. Materials can be delivered exactly where they need to be, not just on time but in advance. This is done through a series of data-driven systems that send alerts and control various operations as necessary.

3. Predictive Modeling and Decision-Making

Near the start of the supply chain, performance and support directly rely on market trends. If a particular supply or raw material is low, it can affect everyone, including the delivery times of various components and goods. With automation and advanced analytics systems, this kind of problem can be eliminated, largely through predictive modeling.

A machine learning or AI system will essentially ingest data on a company’s history, performance, market trends and consumer demands. It will then build an accurate model of what’s to come or how things will play out, allowing for more informed decisions. This can be evolved to include automation systems for a larger efficiency boost.

If a certain raw material is becoming more scarce, the automated system can order more in anticipation of a major shortage. During the shortfall, the system can calculate the length of time to receive new supplies as well as the current stock to ensure operations run smoothly. Items arrive just before old ones run out.

4. Better Workforce Management

Rather than waste human expertise on rote and tedious tasks, projects can be automated through a series of systems including IoT, AI and advanced robotics. Personnel can then be assigned to higher-value tasks that better meet their talents. This has the added effect of boosting employee happiness, as workers will certainly enjoy the more important roles and responsibilities.

Moreover, labor shortages and high turnover rates become a problem of the past, with many of the tasks and opportunities that were hard to fill now handled by automation.

How to Implement Automation and Streamline Materials Handling

1. Research

The best place to start is by doing some research. Consider the available vendors and their reputation, as well as what kind of solutions they offer. What will you need to upgrade in your existing systems and solutions? Is there anything that can be carried over?

How long will it take to implement the full scope of the automation project? Most importantly, how long will it be until you recover the initial investment and turn a profit?

Also, consider the systems that will be automated. It’s much more than just digital tools and components. Pallet inverters, for example, can be used to automate the handling of pallet-based goods and have a load capacity of about 4,400 lbs.

Another way to automate your warehouse is to invest in, and maintain, conveyor belts. Not only do conveyors keep employees safe by minimizing the amount of heavy lifting they need to do, they could be optimized in the near future. Adding sensors to conveyor rollers will allow businesses to gather important data like, product weight, amount and quality.

Is there equipment that you can use to automate more conventional procedures, similar to the pallet inverter or conveyor belt examples?

2. Vendor Selection

Once those questions are answered and you understand what’s necessary to achieve automation, it’s time to start shopping around for vendors. What solutions can they offer and what comes included? How are system updates handled? What’s the support process like? Are there real-time consulting opportunities at the ready?

You may even want to consult with a vendor’s existing clients to get a feel for how satisfied they are. Did the company meet their needs? Were there complications and have all their concerns been addressed?

The research process seems involved and can be daunting, but it’s necessary before getting involved with any automation providers or vendors.

3. Prepare Your Team

Next, you’ll need to prepare your workforce. This means training them and building awareness about the new systems, technologies and processes. Don’t forget to consult with them where applicable, as many workers have direct insight as to the inner workings of supply chain operations.

Ultimately, companywide buy-in will ensure the adoption process goes smoothly, and it will help mitigate the usual problems you might see when adopting new procedures.

4. Deployment

All that’s left is to deploy the necessary technology’s processes and solutions. Implementation can be a lot more complex than expected, however, so it’s always best to consult with support agencies and vendors. The exact approach is going to vary from business to business, which is why most of this explanation will seem broad.

The trick is to start small and slow. Choose one or two major processes that can be automated and work on perfecting those systems before moving on to other areas of the business.

With perseverance, the bulk of your materials handling operations will be automated, resulting in many cost- and time-saving benefits.

Megan R. Nichols is a technical writer who specializes in industrial and scientific topics. She regularly contributes to sites like American Machinist, Manufacturing Transformation and Industry Today. Megan also publishes weekly on her personal blog, Schooled By Science. Keep up with Megan by following her on Twitter or subscribing to her blog.

Who you buy it from is often more important than who made it

Pallet rack, like the majority of material handling equipment, is available from several quality manufacturers in the United States. The question of what to buy is normally fairly straightforward. The real question is, who you buy it from to get the best possible deal in terms of price, delivery and support. There are several options.

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Auction Buying Secrets – 7 Rookie Mistakes You Should Never Ever Make

So it’s your first auction and the place is full of people and excitement. The auctioneer is barking out bids, numbers and prices. People all around you are bidding on an item like it’s a long-lost childhood toy. You notice that some item you have just seen in the store sold for a fraction of the store price. A second item comes up and it goes for yet another great bargain. You think, “Wow, this seems like a pretty easy way to get things dirt cheap. Maybe I should bid and get in on the action. How hard can it be anyway…right?”

Wrong!

While great buys can be had at auctions, the opposite is also true. Getting stuck with something that isn’t what you thought it was can (and more often than not, does) happen. Below are some pro tips that you can use to avoid costly mistakes. Following the tips will save you a lot of grief and expense and give you the tools you need to bid like the pros.

#1 – Hidden costs

While auctions provide a means for anyone to find a bargain, it’s important to keep in mind many of the hidden costs often associated with auction buying.

Buyer’s Premium/Commissions

Most, if not all auctions have what is called a buyer’s premium. This is an additional fee that is put on all items sold at an auction. This fee can run anywhere from 10% to 20% of the item’s sell price. This cost is an additional fee that you will be charged for items you buy in addition to the price you bid. Beware – buyer’s premiums can add up very quickly. Auctions can often have different buyer’s premiums for those bidding online and those physically bidding at the auction. Every auction is different so take note of what these costs are and which fees apply to you before you bid.

#2 – Do a detailed inventory and inspection

If I can give you two pieces of advice here – it would be these:

  • Don’t assume all the parts or there.
  • Don’t assume missing parts can be requisitioned or repurchased.

I’ve seen to many rookie bidders thinking they got a great buy only to discover later that the items are no longer in production or the manufacturer is out of business. Do a detailed inspection of items to make sure all necessary items (ie. hardware, parts, controls, manuals etc.) are there. If parts are missing make sure replacements are available and have an idea of what the costs will be to fix, repair or replace what is missing before you bid.

#3 – Taxes & Fees

Depending on the location of the auction, be aware that different states have different rules about what taxes or fees they want you to pay. Some states are nothing some are 6% – 8% or more.

#4 – Remember…there are no “Do-Overs”

What that means is that “What you see is what you get!” and “You buy it, you own it!”

If an item you bid on doesn’t run or isn’t what you thought it was, you have NO RECOURSE later. The auctioneer is not going to give you your money back or allow you to back out of a purchase once you buy it. It is your responsibility to know what it is you are bidding on – NOT the auctioneers. Items purchased thru auctions are inherently sold “as-is, where-is” with no implied guarantee or warrantee.

Caution: Auction bidding is a fast paced game for grown-ups – not victims. At auction, you sign the auction’s terms and agreement paperwork before you are allowed to bid. This agreement is a legally binding contract that says you know what you are doing and what you are bidding on, and you assume all liability to pay for whatever you buy in the condition it is in when you buy it. If you bid on an item thinking it works or runs only to find out later it doesn’t – too bad. In other words – you buy it, you own it.

#5 – Removal Costs

Never forget, unless specifically stated otherwise, everything in an auction is sold “as-is, where-is.” If the equipment you purchased requires dismantling and/or removal, YOU (as its new owner) will be responsible for the disassembly and removal of the item – not the auctioneer or former owner. This can be very expensive.

#6 – Time Costs

Related to removal costs are time costs. There are often very short time frames and/or restraints for removal that you will be responsible to adhere to. Failure to comply with these can result in fines or legal action and even forfeiture of the equipment. The time you have to remove the item can also drastically affect the final sale price you and others may be willing to pay. I have seen time frames for removal that range from the same day as the auction to several weeks or even months. Know when things need to be removed before you bid.

#7 – Transportation

Items to big to move by yourself may require additional people or equipment to move. The auctioneer IS NOT going to do that for you. Don’t bid on items that will require you to hire or requisition additional people unless you know the costs of doing so in advance. With fuel prices on the rise, having to freight items across long distances can be very costly. Again, know and factor in all the costs before you bid.

There you have it – as with any great deal – the devil really is in the details. Please feel free to comment or share other auction tips or tricks in the comments below.

SJF Named One of Minnesota’s “100 Best Companies”

100 Best Companies to Work For in 2018

SJF Material Handling is honored to be named to Minnesota Business Magazine’s “100 Best Companies to Work For” in 2018. This is the 4th time SJF has been named to this prestigious list.

Qualifications for the “100 Best” Award From Minnesota Business Magazine

Minnesota is known for being a great place to live and work, with top-notch companies in many industries headquartered here. Each year, these companies submit nominations for the 100 Best Companies to Work For Awards by Minnesota Business magazine. This award recognizes Minnesota’s top companies and, time after time, helps the winners attract key employees who make all the difference.

The “100 Best” were determined by the resulting scores of an anonymous online questionnaire filled out by the employees of each participating company — to determine which companies in Minnesota excel in the areas of work environment, employee benefits, and overall employee happiness, making them the 100 Best Companies to Work For.

SJF will be honored in a celebration awards program and dinner on Thursday, June 28th at JW Marriott in Minneapolis.

Top 5 Things to Double-Check on a Pallet Rack Quote

So you’ve finally gathered the 3 competitive rack quotes that your boss requested a week ago. Now it’s time to sit down and give them a good looking over. While you may be tempted to simply look at the bottom line on each quote, you’ll want to first make sure you’re really getting the best price – not just the lowest.

5 of the most overlooked items on every pallet rack quote after the jump…

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