Nirvana or nightmare?
April 1st 2006

For some, automation is nirvana, the ultimate cure for logistics inefficiencies and unnecessary costs. For others, their experience of automation has been nothing short of a nightmare. Mike Cogger, Managing Director of Knapp UK, considers the factors that contribute to successful automation

Experience over the last couple of years has proved that even large and well-established blue-chip companies can make huge errors of judgement when it comes to implementing automation in their supply chains. Certain high-profile cases of logistics chaos - not all correctly reported, of course - were splashed over not only the logistics press, but the business pages of the national dailies.

Not a panacea

Perhaps it doesn't surprise you to learn that I don't believe that automation is the panacea for the logistics world. There are some applications which simply don't suit automation at all. They are, however, fairly few and far between. Most handling situations would benefit from some degree of automation but, quite possibly, not full automation. It is a common mistake to think that implementing automation must mean automating absolutely everything. In fact, firms should automate only where there is a positive benefit from doing so - benefits such as improved customer service, shorter lead-times and lower cost per unit handled.

Where it is right to do so, however, companies should retain a human element.

It is often self-defeating, for example, to try to automate flexible demand tasks. Order picking - a key element in the distribution chain - often requires different approaches for fast- and slow-movers and for odd or bulky items. Here, manual picking or semiautomatic picking aided by pick-by-light or pick-by-voice may be preferable to full automation.

Discipline, ambition & commitment

Where there are measurable advantages to be gained from automated processes, what factors influence the success - or failure - of automation?

In my opinion, a key factor is discipline.

The project needs to be given a huge amount of discipline by both the client and the automation supplier. This means setting out all the parameters for the project in the finest detail. No stone should be left unturned in the examination of every possible business scenario that may occur.

It is important to remember that automated logistics equipment is always computer-controlled, and that a computer will do whatever you ask it to do, but it won't do what you haven't asked it to do! If flexibility and adaptability is required, these objectives need to be designed in from the very beginning of the project, if the client is to avoid unnecessary costs later.

Discipline is not enough, however. A project also requires impetus and ambition.

Many of Knapp's clients have found that a successful technique is engaging 'champions' for the project from within the business, and using them to help implement the necessary cultural changes.

Automation is not merely mechanical equipment; it is a sea change that affects every aspect of the business. To install an automated solution successfully, you must address the way that your business operates and even thinks. Clients and suppliers need to work together, fostering a partnership approach to the project and encompassing all parties in its successful delivery. This mind-set can be encouraged by team-building events and by celebrating the achievement of key milestones.

Of course, an automated project does not stop when it goes live - in a way, that's when it really starts. Therefore, members of the project team need to be not only disciplined and driven, but also committed. Clients need to engage staff who can offer long-term commitment and ownership to the project. A core of key people need to be involved past the 'go live' stage and on to 'project maturity'. This applies equally to the supplier's team. The reason behind this requirement is the simple fact that there is so much information in a large-scale automation project that can never be fully documented. Continuity of key players tends to prevent these omissions from becoming a problem.

Handling unit conformity

Another key factor in automation success is conformity in terms of the units being handled. Note that we are talking here about conformity, not uniformity. This means good, repeatable quality and tolerances of the pallets, totes or cartons that are to be handled. The envelope of conformity at any one application can be very wide but the key point is that the handling units must conform to the criteria that are agreed at the outset.

The degree of conformity varies from industry to industry, of course. In the pharmaceuticals business, for example, most products are packaged in small, light boxes or containers that can be handled easily by automated equipment such as Aframe autopickers. Although conformity of units handled aids automation considerably, lack of conformity is not a barrier to successful automation. An automated system can handle differing sizes and qualities of unit loads, provided such deviations have been planned in at an early stage.

Skilled operators

A success factor that is often overlooked is the quality of the staff operating an automated handling solution. Automation saves a considerable amount of labour, of course, but companies often fail to realise that the remaining staff required to operate the system need to be more skilled than those employed when the handling was manual. Whether through ignorance, lack of training or poor work practices, operating staff can have considerable impact on the availability and downtime of an automated system. This, in turn, has considerable impact on profitability.

Ongoing support needs to be provided by qualified and trained staff, either in-house or from outsourced experts such as Knapp service engineers.

Managing expectations

Lastly, there is often a need to manage expectations within the customer's firm.

The people actually within the client's project team should be close enough to the planning process to have realistic expectations of the automated system.

However, there can be a number of people who are part of the client's decision-making process at a high level - usually Board level - who are only on the fringes of the planning process. As they are, naturally, involved in other key aspects of the business (perhaps in finance or human resources), they have limited experience of handling - whether manual or automated - and their expectations often need to be managed. Again, this is a factor which needs to be examined early in the planning process if the disappointment and political blame attribution typical of some automated solutions are to be avoided.

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