The Annual Count - Taking Stock
“If you don't have time to do it right, when will you have time to do it over?” - Reduction by up to one half the amount of time needed to perform the count through the elimination of manual data entry as bar code scanners pick up part numbers, serial numbers and lot numbers
The person who said this was John Wooden, the greatest basketball coach in NCAA history, and for him it was all about execution. When it comes to your annual inventory count you really can't afford to do it wrong.
The annual inventory count is a mandatory ritual for companies not using a real time perpetual warehouse management system (WMS). It helps purge the year’s warehouse transgressions such as putting product in the wrong place, not recording what you did, and picking the wrong stuff. However many approach this critical function with just pen and paper and a lot of elbow grease.
Is there a better way?
In short yes, you don’t have to buy a full blown warehouse management system to automate this task. Several of our clients only started with our inventory count module. In fact clients who went this way told me that the inventory count feature paid for the rest of their WMS implementation. And it doesn’t take long to implement; typical time is about a month however we did one earlier this year in less than a week.
What are the Savings?
One of clients a prominent mid-west food manufacturer and distributor has inventory valued at $50 million. Annually they were writing off $100,000 to $300,000. Starting with our inventory solution they worked up to weekly counts. Within a year they reduced their annual losses by 80% and the key was simply knowing where everything was. This also meant not having to sell an extra $5 million to recoup this lost inventory which is also how much one rep sells per year – or in other words a FREE SALESREP!
Other benefits included:
- Labor savings on inventory count a reduction by one third
- Switch to ABC counts thus changing the frequency based on the category for example count the A’s monthly, B’s quarterly, and C’s yearly
- Reduced count time means fewer lost shipping days
- Able to performing more counts because it’s now more convenient, faster, and easier
- Reduce buffer stock by 10%
It’s never too late to do the right thing and in this case never been as easy. It’ll likely rank as one of the best things you’ll do in the warehouse in 2012.
Scanners On!
Jeff
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Monday, August 22, 2011
ConnectNOW
I’m very excited to announce our third annual ConnectNOW 2011 Customer Conference at Niagara Falls, Ontario Sept 28-30.
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Tuesday, July 19, 2011
Happy Birthday IBM
On June 16, IBM officially turned 100 years old.
This is quite a remarkable feat by any standard and warrants recognition despite being a competitor.
They started corporate life in 1911 as a manufacturer of punch cards, commercial scales, and clocks. From there they invented the mainframe (1964), magnetic stripes (1969), floppy disks (1971), Lasik surgery (1980), and their most recent achievement Watson, the supercomputer that beat all the top Jeopardy champions. However the one innovation that makes me especially grateful and made my industry possible is the UPC barcode (1973).
This only tells part of the story, the one part of their story that inspires me is how they evolved from being a hard goods innovator and manufacturer to also being a software and services company. From the 50’s to the 70’s when hardware ruled the roost, software was typically given away. But in the 80’s and 90’s that started to change when it became evident that software such as Linux, XML, and Java became the means of allowing IBM to break down its internal silos and ensure portability of it’s hardware products into new markets.
Today, software represents $22.5 billion or roughly 22% of its total annual sales. But as they say in the Ginzu knife commercial but ‘that’s not all’. Over the last decade IBM embraced services with the notable acquisition of Price Waterhouse Coopers in 2002 and as a result services now form the foundation of all of IBM’s offerings be it software or hardware and is very much the centerpiece of their Smarter Planet initiative.
So why is this so important to me?
It serves up a valuable lesson that some things are truly timeless and one only need look at IBM to be reminded about what it takes to survive and be successful in technology – the most dynamic of all industry sectors.
Customers want solutions to their challenges and don’t care whether it takes the form of hardware and/or software (although increasingly today it’s more about software). And most of all customers want service from a partner that stands behind their work and can show them how to best use the solution for maximum gain.
Congrats IBM and on an amazing 100 years! Thanks in large part to your innovations we have Scanners On!
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Tuesday, May 31, 2011
Making the Right and Sometimes Challenging Decisions
Ben Franklin once said “To succeed, jump as quickly at opportunities as you do at conclusions”.
On another front, a good friend in the industry approached me several months ago about his acquiring his former company. This company Data Technology Limited known to all as DataTek is a icon in the industry having been one of the first companies in the ‘bar-coding game’ and operating as one of Telxon’s Master Distributors. Established in 1976, the company built its reputation on superior service, expertise, and a personal touch through Les Crisp, the founder. Under Les’ leadership the company grew exponentially, acquiring accounts who bought hundreds if not thousands of barcode devices. This becomes all the more impressive when you consider back in those days barcode handheld computers with 4 line displays and 128K RAM sold routinely for $4,000 and the Canadian dollar was then as it is today at par. Qdata benefited from Les’ experience as we were one of DataTek’s customers; being new to the industry back in the early 90’s, Les took us under his wing and taught us the ropes – lessons we’ve never forgotten.
Sincerely,
Jeff
Scanners On!
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Wednesday, May 11, 2011
A Dragon’s Message to Canada
I heard Kevin O’Leary of Dragon’s Den speak as the keynote at yesterdays Supply Chain and Logistics Conference in
The message that resonated with me was his prescription for Canadian companies and how we have a tremendous brand. Widely respected and recognized Canadians are seen as intelligent, hardworking, and honourable – meaning we pay our bills.
The real meat of his presentation for me however was when he then went on to say that we need to take advantage of the strong Canadian dollar and low interest environment to step up investments in innovation, plant, and equipment. Otherwise we’ll never be able to capitalize on the goodwill generated by this tremendous brand called
On that later note I couldn’t concur more. We at qdata are having a record year and while I can attribute this success to the excellent products we represent, our knowledgeable sales force, “we service what we sell” commitment, and our leading edge software products; I know it has a lot to do with our dollar which is making the products we sell a lot cheaper (close to 15% less than last year) and low interest rates.
- Better products from leading vendors such as Intermec and Motorola, and Psion. Their pace of innovation and features has resulted in a bonanza for users of this technology. The value proposition of features to price are now making it super attractive from an ROI perspective for whether you’re just upgrading or putting in bar coding for the first time.
- More Secure Wireless Networks. If you’re getting new mobile handheld computers, chances are your legacy wireless network won’t have the latest security protocols and encryption. Wireless networks from Aerohive, Cisco, and Motorola have not only the latest in security but also offer PCI Compliance, enhanced rogue detection, and centralized management through web based software – you no longer have to depend upon a separate hardware appliance.
- Great Service Plans. Manufacturers are now producing better than ever products and that means three comprehensive service plans selling for around 20% of the selling price of the unit. This represents a very low total cost of ownership, whereas in the past this cost has been over 40%.
- Better Software. Taking of all the great mobile applications built on Microsoft’s .NET or Silverlight technologies requires that you also buy the latest Windows Mobile operations systems. So you need that latest in hardware as you’ll be hard pressed to find any new software today that doesn’t require a minimum of Windows Mobile Version 6.0
It was good seeing Kevin O’Leary, as he and I go back to the days when he was working at Softkey here in
Jeff
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Saturday, April 16, 2011
From Warehouse Best Practises to Best in Class
A recent study from Industry
They are:
- 80% used a Warehouse Management System
- 90% engaged in warehouse process training
- 50% performed warehouse technical training
- 55% used mobile devices to perform real time transactions
The report noted that BiC companies were more likely than the laggards to invest in software, training, and advanced technologies and that 65% of BiC firms are collaborating electronically with their supply chain partners.
What the report doesn’t identify is how a distribution facility goes from being a laggard to BiC.
From my experience it starts with Best Practises. And this would include the following:
Implement a Warehouse Management System. Far from being just another software program, a good WMS enforces workflow discipline, process consistency, and visibility of inventory and people. Where you start depends on your experience level. If you’re just starting out with no prior experience, then I recommend starting with inventory counts.
Preparing your Facility. At a minimum this would include proper rack labeling (see our Top 20 Tips in the RF Plus section), installing a proper wireless network i.e. not consumer grade, and making sure you have barcodes on all incoming and outgoing product
Involve the Team Early. Don’t just let IT or management decide how to configure and rollout the WMS project. It is very dangerous to not involve users in any scenario testing and input around what needs to be done first.
Phase it. If you’ve never implemented barcoding before don’t swing for the fences in your installation. Build phases into the project and let the first success albeit modest be your momentum builder.
Management Support. They set the vision, the goals, and timelines and of course sign the checks. But most importantly they decide the team composition and give personnel the go ahead to participate in the project – make sure it includes IT, project manager, supervisors, and users.
The journey to becoming a BiC facility takes years of work. You know you’ve arrived when those best practises become automatic and you’re not only more profitable, but both employee morale and customer satisfaction are well beyond industry standards.
The Industry Canada study can be downloaded from this link www.ic.gc.ca/logistics
Scanners On!
Jeff
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Monday, December 13, 2010
Paving Over Cow Paths vs Real Change
With over 25 years experience in IT, I’ve participated or project managed over 300 IT implementations. Don’t know if it qualifies me as an expert but what that experience does give me is a better understanding of how to successfully implement technology.
Today there is truly some great technology out there. A lot of it works out of the box and ready to be used almost immediately. Helped by open standards in communications, networking, and software development it has become easier to create scalable solutions that are easily integrated together and into your existing IT Infrastructure.
So despite all these advances why, according to most statistics, 54% of IT projects fail to achieve anything close to their promised ROI?
I believe a big reason for this is because companies are not prepared to make the necessary changes to truly take advantage of the new technology. Rather most organizations expect to do the same thing except faster or as I call it paving over cow paths.
Actually this is a reasonable expectation as technology does shorten decision timeframes and reduce manual processes like data entry. However in my experience, companies have gotten the most benefit out of technology when they’ve changed their processes.
If you’ve ever had to change a process at work you’ll know this is not an easy task. I recall many hours spent with my team re-designing customer’s work processes, testing the changes, and training our customers how to do their ‘new’ jobs.
Were it not for this essential activity – many of our customers today would not be getting their full ROI.
The lesson learned is this: companies must adequately plan for change by appointing a “Project Success Officer” or be willing to engage an outside consultant/vendor to re-design work processes. Otherwise you run the real risk of never fully realizing your investment.
Happy Holidays and may you find under your tree this Christmas a successful project in 2011.
Scanners On!
Jeff Lem
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Wednesday, September 08, 2010
Buying Mobility Technology - The New Rules
Welcome Back from Summer!
According to studies, within a couple of years the number of people accessing the internet with mobile technology (smartphones, PDA, etc) will EXCEED the number of people using a hardwired connection. While this statistic is mainly geared for the consumer space I have no doubt this will also mean a greater of share of business transactions being done by a mobile workforce.
This means placing orders, taking payment, confirming appointments, etc - will increasingly done by someone doing self serve via a smartphone or with a customer facing worker who has mobile access to their company's IT system.
A revolution is taking place which has huge implications for how customers should go about buying mobile technology.
In the past, our industry has gotten away with selling mobile or AIDC as a point solution. The technology addresses a very defined business need and will not go beyond the department using it. For example buying a handheld computer to count inventory in the warehouse or at a customer site was based on price, ease of use, service, how to program it, and how to get data in and out of it.
However with the adoption of mobile technologies and barcoding into so many other areas of the business, it's no longer just the field worker using the technology. It's the sales person, the customer service person, the delivery person, repair guy, and all of your executives on the move.
Which brings me to my point: buying mobile technology is no longer just based on feeds and speeds but rather strategic enterprise considerations.
The basic buying choices haven't changed but now add these:
Security. How do you lock down that data being loaded on those handhelds? How do you prevent anyone hacking into your wireless network? Mobile technologies empowered people to perform work in the field but you also need a plan for controlling the dissemination and spread of that data.
Management. Imagine hundreds of workers relying on the device and the software on it to perform their everyday jobs. How do you manage version control when the software needs an upgrade? Having the units come in to a depot is out of the question. And how do you track these assets now that they are no longer within your four walls? Auditors will have a field day if you find out these assets and the information on them isn't properly being controlled and tracked.
Service. Each device needs a service plan based on lifespan, volume of usage, and replacement cost. Turnaround time, depot service, self serve, and comprehensive service contracts are just some of the considerations. Also some vendors only service certain makes and models meaning having to juggle multiple service vendors.
Software. Many companies hope to use remote desktop, VPN, or re-sized host screens from their current system to satisfy mobile users. The fact that devices today have so many capabilities, not getting specialized mobile software means not using as much as 80% of the device's capabilities. Devices today come equipped with a GPS, camera, bluetooth, WiFi, and 3G. This means dramatic cost savings in wireless if a device's software application doesn't automatically doesn't flip to WiFi when such a network is available or you can use the camera to scan a barcode, capture a picture of a returned item, or use it to image an important document. Also the GPS can be used to track the location of not just the worker but a big mobile asset such as the tractor of an 18 wheeler and also the locations of field assets like a transformer. Software will make or break the user's experience and ultimately determine the success of your mobile project. Using legacy software however technically feasible which does not take advantage of these technologies will lead to less than optimal results and a poor project ROI.
Buying mobile technology is no longer simple proposition of buying on features and price alone. You need a strategy that includes Security, Management, Service and Software considerations. Otherwise you're working in the past using buying criteria which are not scaleable and do not leverage a company's richest asset - it's information.
Welcome back and Scanners On!
Jeff
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Monday, July 05, 2010
Highlights from Connect NOW 2010
Held at the
A number of industry firsts…
Apple
Toshiba TEC unveiled the Canadian debut of the 2ST, the industry’s first two sided printer capable of printing two labels at once or printing on the backside of the liner. Thereby saving time and when printing on the liner, a lot of trees.
Motorola showed the ES400, it’s latest ruggedized smartphone with built-in scanner and Windows Mobile 6.5 operating system.
Portable Intelligence, a qdata spin off, the industry’s first sales force automation tool designed for the iPad which drew much attention.
We had some great presentations and lessons learned…
Dicom Courier along with Intermec presented their case study on how he deployed proof of delivery to their 400 plus drivers. And along the way how they dramatically drove costs out of their business through automation.
Grand and Toy along with Psion Teklogix talked about their deployment of wireless technologies for their warehouse and the substantial benefits they enjoyed through real time updating and bar coding.
Rosenau and Motorola teamed up together to deliver a great presentation around best practises for deployment of field technologies for their 200 drivers. In the process qdata received a gift from Rosenau in appreciation for the work we did in support of their project.
Carolyn Waldo, CTV sports broadcaster and gold medal Olympian talked about how she faced and embraced her fears to become tremendously successful both in the pool and out.
And most of all we connected and had some fun…
Thank you customers and partners for making the event an awesome success!
Jeff Lem, President qdata inc.
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Friday, May 28, 2010
Why Connect NOW 2010 Matters
With 200 end user customers coming, we’re close to being ‘sold out’. And the reason is simple: CONNECTING.
Some of our attendees so far include the following companies Coca Cola, BMO, CIBC, Nestle, Home Hardware, Air Canada, Purolator, TELUS, The Miller Group, Longo's, Russell Metals, and Indigo to name a few.
We’re also featuring two keynotes, the first from Carolyn Waldo Olympic Synchronized Swimmer Champion & CTV Sports Broadcaster who will give an inspiring talk about owing your personal podium and the second from Motorola’s David Green who will talk about how green technologies such as mobility can be spun into gold.
If that is not enough we’ve got a special presentation from Apple Canada on the future of iPhone and iPad it’s affect on business and we have exhibit tables with products and representatives from key technology partners Motorola, Intermec, Psion Teklogix, and Zebra. If you’re interested in best practices – then hear from our customers how they’ve taken these technologies and generated real paybacks and benefits.
Finally, the cost: FREE to registered guests.
Register below with my VIP pass code: CONNECTJEFF
http://www.qdata.com/connectnow2010/
See you at the Paramount Conference Centre in
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