For the past 30 years, barcode and, more recently, RFID applications have been used within the confines of a single location for fulfilling manufacturing work orders, managing inventory and warehouse distribution and retail point-of-sale. With the advancement of mobile and wireless networks and devices, the barcode landscape has changed significantly. Increased coverage, better device reception is making it possible for companies to take barcode and RFID applications into the field. In recent years this technology has become increasingly affordable and capable.
Mobile Innovation = Extending Productivity beyond the Confines of 4 Walls
Barcode and RFID technology gives your company a competitive edge by increasing speed, accuracy and throughput. This blog is meant to challenge you to think outside the box. I want to open the possibility of running your business in real-time, with less overhead by mobilizing and deploying service teams, products and assets? The technology required to do so is now more affordable than ever.
Speed - the Wireless Workforce
Field service reps can now carry scan equipped mobile computers or tablets with cellular and wireless capability that allow them to respond to customers more quickly and effectively than ever before. Rather than manually inputting data, maintaining and ordering tools and equipment or filling out paper work service reps can spend their time with customers. By exchanging data with headquarters in real time, employees gain access to a wealth of resources, field technicians can be more responsive to customer queries and complaints.
Imagine, no more hanging file boxes, full of carbon copy receipts and transactions sitting in the passenger seat of your service vehicle. By batching data from the field directly to headquarters, quotes, receipts and even lead nurturing could be deployed electronically and instantaneously to customers.
Accuracy- Mobility for the Government
When the Department of Fish and Wildlife for both Washington and Oregon came to us and asked if we could help them track live, wild salmon we were a momentarily taken back. Tracking inventory in a warehouse is one thing but wet, wiggly scaly fish are another. So we put our heads together and presented them with a solution.
By using low-frequency HDX RFID tags and the Psion Workabout Pro3 with it’s long range RFID module, field technicians can scan fish directly from the shoreline with incredible accuracy. Our software collected the data from the device into database where it is then analyzed.
Throughput - Food Processing and Distribution
80% of Alaskan seafood processing companies Dynamic Systems solutions use barcode tracking systems for inventory control and product traceability – both on the boat and in the cold, messy processing plants.
Our solution automates inventory and distribution, allowing companies to instantly print labels on demand as product moves down the line. At the end of the line, route sales people with scan equipped mobile computers scan the box labels to automatically generate shipping documentation such as a Bill of Lading. They can even replenish shelves and place orders via cell phone.
In an industry where products are often sold before they are even checked into inventory, this allows the company to increase throughput and thus their capacity for taking in more business.
If you are part of a company, then you know that there two categories of initiatives for you company to engage in.
Category 1: Money Making Initiatives are the primary reasons a business exist. Into this category fall all investments, employees, activities and efforts which have the singular goal of generating greater ROI. In summary, generating more revenue in hopes of higher profit earnings.
Category 2: Money Saving Initiatives are equally as important as the money making initiatives for similar reasons. In this category fall all investments, employees, activities and efforts which will reduce operational costs in an effort to increase profit. It goes back to that Business Management 101 class you took in college, where you learned the formula Profit = Revenue – Cost
Traditionally asset or inventory management solutions fall into the “money saving” category. This is because barcode solutions increase productivity and accuracy and reduce operating cost. It’s time, though, that the business community realizes that a barcode solution will not only save you money, it will increase speed, throughput and overall profitability which will in turn generate higher returns. I will highlight a few of the major ways in which Auto-ID solutions such as inventory management, employee time & attendance, capital asset tracking and job costing will have a direct impact on your companies profit earnings.
Acurate Estimating:
If you are a contractor in the construction or restoration trade, then you know from experience that cost of labor takes a large percentage of your total estimated operational costs for a job. Thus, reducing ill-productive activities such as searching for, replacing or repairing lost or broken tools and equipment is a high priority. While replacing lost tools is expensive, so is driving your cost of labor over the estimated amount for a job. If you are a custom manufacturer or custom fabricator, you also have to estimate your jobs. The more data you can collect regarding hours worked on prior jobs, the more accurately you can estimate the cost of labor on new jobs. It is quite logical to conclude that if your operational costs fall at or below the estimated amount then you will have maximized you profitability.
Objective Forecasting:
You don’t have to be in business long to discover that accurately forecasting your business is almost an “art-form”. The good news is that a barcode or automatic data collection solution can make forecasting much more of an objective science. Companies forecast sales, cost of operations, capital equipment requirements, and so on. Having an abundance of accurate, real-time data facilitates precise forecasting, which in turn helps balance schedules and labor requirements, not to mention your sales pipeline.
For example, manufactures and fabricators want to track materials used on job, labor, tooling and material inventory. Up to the minute information regarding job status will identify bottlenecks and other issues during the manufacturing process. For a construction company that manages several jobs at a time, being able to re-deploy expensive tools and equipment from one job to another quickly will avoid unnecessary duplication of equipment and make it easier to schedule jobs tightly.
World-Class Customer Service:
There is no doubt that happy customers make companies money. By using a barcode tracking system, it is possible to provide customers up to the minute information regarding products, orders, shipments and inventory which will result in higher repeat business.
For example, REI (Recreational Equipment Inc.), a Seattle based nation wide sporting goods retailer, is able to provide store inventory to customers visiting their web site in real-time. A system such as this will result in increased sales, reduced churn and greater customer satisfaction. All of this is made possible with an barcode inventory system which allows the retailer to connect their vendors and suppliers, incoming freight, distribution centers and stores.
Terms such as best practices, processes and work-flow are mentioned frequently during the installation of a new barcode tracking system. But what are process best practices and why should you care? When working with new customers, we like to remind companies the barcode and auto-id systems don’t replace your existing processes, but support them.
In any business, whether it is manufacturing airplanes or shipping products around the globe, there must be consistent, lean and solid processes supporting it’s operations. Without well designed, standardized and predictable processes, you will produce consistently unreliable results. Thus your productivity and profitability will take a hit.
Best practices are methodologies and principles that when implemented into existing processes will consistently produce superior results. In the case of an auto-id system, that means increased productivity, accuracy, efficiency and return.
Automate whenever there is an opportunity:
Many of the benefits gained from well vested process improvement programs for which some companies pay millions of dollars (such as ISO9000, Lean and Six Sigma) are made possible for small budget companies through an auto-id solution. This is because barcode and auto-id solutions are process automation tools that essentially allow employees of small companies to run multiple procedures and processes, simultaneously. Auto-ID solutions also help companies trim fat from processes by cutting out all manual data entry practices. Customers of ours whom are small to mid-sized business owners are finding it possible to achieve the same results without a huge dollar commitment.
Measure performance against benchmarks:
Industry benchmarks, which are standardized results achieved by other companies with similar solutions, are important for any process improvement you may make. For example, metrics companies may measure could be the number of shipping errors made, assembly time per workstation, etc… By measuring any process or solution against benchmarks, you can gain a clearer idea of how well you are performing.
Partnering with Dynamic Systems:
At Dynamic Systems, Inc., we partner with companies by helping them document existing processes to identify if they will even benefit from an auto-id solution such as barcoding or RFID. We offer free advice for what improvements you could make based on industry best practices. Our goal is simple, partner with companies to streamline operations in a way that results in measurable, incremental returns over the life of the solution.
When Dynamic Systems’ barcode experts visit our customers to provide consulting and advice rooted in best practices:
- We like to document the current processes in flow-chart format. We find that a visual depiction of the steps your employees follow helps reveal areas of congestion or even process break-down.
- Our customers engage with us in a discussion, highlighting key areas for improvement. This will include a discussion with stakeholders from all levels of the organization. While this practice is uncommon, we have discovered, while doing this for over 30 years, that if your employees are involved, then change is more readily adopted down stream.
- Depending on the size and scope of the install, we like to provide our partners with a formalized, BRD (business requirements document) and documented process flow. This gives everyone a clear idea what changes are taking place.
- Once the new process has been approved, procedural steps are documented, and training is outlined and scheduled.
Questions? We can help.
If your implementing an automated barcode system for the first time, it will save you time, money and improve results to invest time in planning and evaluating your existing processes.
Installing a New Barcode System? Start with the Label!
The best advice I can give to a company that is planning to implement a new barcode system is that it all starts with the label. Barcoding automates manual processes by allowing users to scan a barcode where they would usually be required to manually input data. This needs to be consistant throughout your process, whether it’s tracking tools and equipment, documents, or costing a job on the production line. Logically, it is easy to conclude that without some kind of barcode label for users to scan, the automated process will fall apart. Additionaly, if your barcode labels are hard for the scanner to read or if it falls off, then you’ve defeated the productivity and accuracy of your new system – the reason you implemented it in the first place!
There are a number of questions you need to ask yourself about what you want to label:
1. How large is the item?
There are very large and very small barcode labels, and multiple reasons for choosing each. For example, if you need to scan boxes that are on high shelves, the barcode will need to be fairly large. In contrast, if you want to label a small tool, such as a screwdriver, you’ll need a very small barcode label. We have customers who purchase labels as large as 14” long and as small as 3/8” in diameter.
2. How far away will the scanner be from the barcode?
If the scanner will be a long distance from the barcode label then the label may need to be larger and possibly retro-reflective. On the other hand, in order to scan a very small barcode from a close distance, a high density scanner may be required.
3. Will the barcode label encounter any harsh environments (extreme cold, water, excessive heat, abrasion, sunlight, harsh chemicals, etc..?)
There are various label materials and adhesives available. The synthetic materials work in moist environments; laminated labels are recommended if abrasion is expected; different adhesives work for extremely cold or hot locations.
4. Will the label need to perform any function other than provide a barcode for scanning?
For example, we have customers who use human readable data such as icons, numbers and pictures or even color coded labels for various purposes.
5. How long will the label be used?
A direct thermal label may work for short-term use (this would save some money) but won’t work for labels that experience heat, sunlight or need to last a long time.
6. Does it need to look “pretty” or utilitarian?
Barcode labels can be produced in colors, and have logos, even pictures, preprinted on them. For example, we have had furniture manufacturers and wineries ask for finished product labels that reflect their branding to the consumer while still meeting their business needs.
Want more information?
The answers to these questions will not only provide you with the specifications for the label, they will assist you in selecting the appropriate barcode printing and scanning technologies, which are often dependent on the working environment and the type of barcode label.
Besides the cost of the solution, including the printers and labels, scanners, and software, the cost justification for an Auto ID system can be a tricky. Prevailing wisdom says that a barcode system pays for itself in less than two years, but this figure is dependent upon a company’s commitment to enterprise-wide implementation and adoption of the new barcoding technology. And to be honest, this “two year” argument alone is often not enough to get buy in from your company’s decision makers.
Barcoding only increases your profit margin when supported by improved processes. When considering barcode implementation, every possible process improvement should be evaluated. There are some obvious improvements that can be achieved by implementing AIDC systems, such as placing barcodes on retail goods to keep employees from manually entering each SKU number - this increases both productivity and accuracy. There are also several new capabilities and controls that appear from the improved data management achieved by implementing a barcoding system, such as Enterprise Resource Planning (ERP), wireless networking options, and RFID smart labels (human-readable label embedded with a computer chip that acts like a portable data file for the product at hand).
So what type of metrics should you be using?
You know you need to measure return-on-investment for any solution you implement. What metrics are measured to determine success may be different for every company. On average, our customers report to us the following metrics within the first 12-24 months of implementing our solution:
- Sales order handling: in one use case, order handling time was up 2x over past years.
- Shipment accuracy rate: businesses report up to 20% more accurate shipments.
- Customer lead time: we have heard of companies experiencing 50% better customer lead time.
- Warehouse distribution efficiency: can average from 10% to 20% improvement
- Inventory accuracy: companies are commonly reporting back that they are achieveing 99.9% accuracy across the board
- Quality control: 75% reduction in damaged and defective goods
- Employee productivity: look for a lift of 30% or higher in worker productivity
- Cost of moving product: is down anywhere from 10% to 20%
The initial cost savings companies discover after implementing an Auto ID system include: labor cost reduction, improved customer service and supplier response times, inventory management, space management, and equipment costs.
In addition to the apparent savings, each of these areas also produces several hidden savings that must be considered during the cost analysis, though the answers may not surface until the implementation is complete. We call this the "iceberg effect".
Opportunities will emerge as the use of AIDC and barcoding gains synthesis with operations
Once the data entry in production is automated, you can begin to ask more pointed questions.
- Can production be sped up?
- What is the best way to deliver customized solutions while aiming for process uniformity?
- Once inventory is monitored in real time, can we achieve a more lean inventory and trim warehousing costs?
Dynamic Systems, Inc. helps you measure ROI and gain visibility so you can achieve operational excellence.
Through comprehensive reporting, our customers are able to quickly determine how well they are meeting their goals. We also provide the tools to determine which areas of your business you could focused on to maximize return.
If you have questions regarding Dynamic Systems, Inc. AIDC software or our Barcode solutions then contact a sales representative today!
We receive hundreds of calls from business owners who want to purchase and install additional wireless access points. Over time we have learned to ask them "Why?" Often the response is it's because they are experiencing what they call “dead spots” or areas of with no network connectivity. Before you invest more into wireless access points and equipment you need to troubleshoot the issue.
You will generally find that an area of little or no connectivity is the result of one of two common issues:
1. You can connect to the network but cannot connect to the host
The thing we run into most is that the customer is able to access the network and send data over the network but unable to connect to the host. In other words, the radio in the wireless access point is working but the Ethernet side is not. In this case, we will want to repair the Ethernet connection first before investing in access points.
2. No network connectivity
There are times we have the opposite problem from what was just described. While standing directly under the malfunctioning wireless access point we are unable to find a wireless connection. That tells us that the radio in the access point is not working or the whole access point is down. A quick check is to look at the access point to see if the lights are on.
At Dynamic Systems, Inc. we are often able to save companies a lot of money and time by correctly troubleshooting and solving the underlying issues. We not only fix the problem but show the customer how to fix the problem on their own in the future.
If you are thinking about a wireless network in your facility, there are some things to consider. Planning and installing a wireless network is not easy nor are their very many third party companies that can do it well (as many of you reading this can probably attest). So what should you look for when deciding which third party company to help you plan and install a wireless network? Minimum performance requirements should be as follows.
RF Site Walk Through
A Site Walk Through is critical aspect of a Site Survey. This step is where we flesh out and document the a customers expectations. In an RF (radio frequency) site walkthrough, we quite literally walk through and map out your job site. In particular, we are looking for:
- maps of the facility and desired coverage areas
- desired throughput (amount of data your planning on transmitting over the network)
- the number and type of wireless devices you plan on using
- what kind tools and equipment is needed for the Survey
- when is the best time of day to do the Survey
- etc…
Without a thorough walk through, you are already off to a bad start. The most important part of planning a network is documenting and meeting all of your business requirements. Dead zones, blackouts and the like will slow down business and have some potentially serious ramifications on your bottom line.
RF Site Survey
After the initial walk through, a more comprehensive survey of your facility will need to be performed. An RF site Survey, or wireless site survey, is a planning session which takes into consideration many variables that will affect your sites performance. It is important that a qualified professional plan a wireless network to meet your business need around your current site. A wireless site survey is important for many reasons.
Power - Discovering is the best way to power a network. For example, should we use Power Over Ethernet (POE) and if so how?
Network Cabling – Determine the length of cable runs between access points.
Measuring RF Coverage - Evaluate the frequency and spacing of access point locations based on coverage areas.
Checking for Other Networks – Identifying other pre-existing wireless networks in your facility.
Antenna - Selecting the correct antenna for each area in your facility in order to maximize coverage and band width.
Blue Print – Document and report out and detail the location or each piece of equipment needed.
Wireless Network Implementation
After the Site Survey Report is finished you should receive a report a very detailed report. Once you have been provided a copy of the report all you have to now is implement. This includes running network cable, installing the access points and antennas and configuring the system.
Check back here often for more about implementation and trouble shooting.
1. Improved Data Accuracy
Data hygiene is the single most common reason companies list for implementing a barcode system. This is because quality, coherent data is most often the backbone of operations and sales. Data entry enables a company to produce accurate reports and forecasts based on informed analysis and actionable conclusions. Considering the critical role data plays in a companies' operations, it is no wonder that there is little margin for error.
Companies with integrated bar coding solutions, such as CheckMate AIDC software, are commonly achieving 99% data accuracy by enabling users to scan bar codes rather than manually input numbers. For many organizations, such as hospitals, crime labs, and manufacturing companies, poor data hygiene can be catastrophic. Bar coding is the best tool for ensuring credible data and reducing the impact of human error.
2. Operational Efficiency
Auto-ID and bar coding enables employees and companies to work faster, without sacrificing accuracy. This is especially true if factoring in the time it takes to correct errors. Also, by converting the physical world into data and meta-data, companies can gain invaluable visibility and insight and into their organization.
Not only that, process automation allows data to be tracked in near real-time, further increasing efficiency. Imagine a company that enables management to make decisions based on current data and empowers employees to action. While the time saved by automating processes is easily recognized, the true impacts of your improvements emerge when bar coding is extended to other areas of the organization.
3. Consistency and Quality Control
Bar coding, particularly in fast-paced work environments, enables consistent operational processes for enhanced product quality. It does so by automating data management functions and eliminating bottlenecks. For example, Auto-ID systems usually operate at a defined pace, either self-determined by the printer’s maximum speed or triggered by the action of another device.
For instance, in an assembly line environment, what was once slowed by manual data entry, now progresses smoothly by using a 170PAX4 with ZebraLink print engine in combination with an automated labeling machine (such as the one featured below). Products can also run under fixed scanners which programmatically and instantaneously record and input data the moment a transaction occurs. In addition, employing standardized compliance labeling ensures that barcode information is universally understood and establishes effortless product traceability.
4. Improved Inventory and Asset Management
Bar coding can help your company efficiently manage resources. Companies routinely come to us for help in employing barcode tracking for fixed assets such as manufacturing equipment, computers, furniture, and other capital assets. They want to capture and track meta-data and inventory for tax purposes. This allows businesses to know the number of each item on hand and its current market value less depreciation. For maintenance and inventory purposes, companies are now asking to track meta-data such as the last known condition, color, features, and designated user.
We have even had libraries place bar codes on books to track borrowing history. Similarly, public transportation authorities, rental car companies and the U.S. Department of Defense have begun utilizing bar codes to track detailed maintenance records for each vehicle. Yet one of the largest markets that is realizing the most ROI from our solutions is manufacturing.
Manufacturing and fabrication companies have come to us for custom designed solutions to track resource inventory and product assembly from start to finish. For example, companies are completing the manufacturing process by labeling finished goods, containers or pallets with detailed information about the product. These labels are a combination of 2D bar-coded data and human readable text. Using our software, their employees are able to scan the label and access exact inventory in real time, as well as the precise date and time that any product left the warehouse.
Bar coding is a form of keyless data entry allowing for the automatic identification and collection of data. This is often referred to as Auto ID or AIDC (automatic identification and data collection).
History of Bar Coding
In 1974, the first the first bar coding was introduced to the retail world on a packet of Wrigley's Gum. Thirty eight years later the number of applications for bar code technology has exploded, going far beyond grocery stores and retail. Read between the lines and you will see bar code technology popping up in new and unusual places such as hospitals, law firms, retail stores, security, and Department of Defense, corporate offices, libraries, and rental cars.
The Spread of Bar Coding
Bar coding and related technologies such as RFID have been used in manufacturing, distribution, shipping and receiving, and retail operations for more than 30 years. Today, bar code applications have spread throughout the enterprise and culture to include warehousing, accounting and customer service, time and attendance, package delivery, assembly line operations, cold storage and even consumer marketing.
The Benefits of Bar Coding
No matter the application, the reason companies implement bar coding is the same: to improve data management, increase security and accessibility and reduce operational costs. Innovative advancements and widespread adoption of technology beginning in the 1980's through the current day has necessitated the need for improved data capture. Data warehousing, data mining and data analysis are bleeding edge, so much so that companies will spend billions and hire armies of BI professionals tasked with consolidating and collecting data. This is all with one goal, tapping into the wealth of information companies finally realized they were sitting on. This need for immediate and accurate reporting has compounded with the introduction of new inventory tracking practices, build-to-order manufacturing and supply chain management best practices.
Is it Time to Automate?
Manual data entry, repetitive tasks, spreadsheets and paper logs have been replaced by bar coding. If your company is a small to mid-sized business, this is almost more important because you have more work shouldered by fewer individuals. It's time to raise your company's standard of quality. Ensure enterprise-wide compliance, enable easy identification of product, track shipments and manage your supply chain and deliver more high quality products.
According to CIO Insight, enterprise mobility and wireless network infrastructures are the top spending initiatives when it comes to IT budget planning for 2012.
According to research conducted by CIO Insight, planned expense increases are focused on cloud computing, mobility, infrastructure, security and process improvements.
The article spoke of three trends in post-recession spending: innovation, integration and reversion. You may immediately notice that integration and reversion are not as sexy as innovation.
Hard times call for increased innovation, and innovaters are rock stars in the business world. One of the results of "The Great Recession" is a spike in innovation by companies struggling to increase revenue, decrease costs and improve customer loyalty.
The reality is that innovative advancements in technology only raise the need for further investment in established infrastructural technology. That includes enterprise mobility and AIDC hardware, AIDC software, and wireless network infrastructure.
There are three words that should describe your company going into 2012: precision, speed and throughput. What we have found is that companies often neglect automating back-end operations, sometimes indefinitely.
Here are the facts about the implementation of barcode technology, inventory management and asset management technologies:
- Precision: Your company could reduce inventory by 6% and labor hours by 20%
- Speed: On average, businesses report an 80% lift in efficiency and up to 40% lift in worker productivity
- Throughput: Reduce damages and defects by 75% while achieving up to 50% better customer lead time
Conclusion: If your company has streamlined processes built on industry best practices then consider automating as much as possible. If you lack formal processes, or feel there could be room for improvement, then consider getting a free process evaluation from a Dynamic Systems, Inc. AIDC specialist.
