By integration I mean
the transmitting of data between the two systems. In the context of warehouses and supply chain
this data will usually be related to transactions or system updates about the
movement of goods: into, around and out of the warehouse.
The ideal integration
is automated real time transaction by transaction. Stepping down from this is periodic updates
(anywhere from 5 minutes to once daily).
Batch updates with manual intervention (downloading a file from one
system, transforming it into a suitable format and uploading it to
another). The lowest level of
integration is a manual interface where outputs of one system are keyed into
another. This is only acceptable for
very low transaction volumes or during a trial learning phase or proof of
concept.
There is of course
nothing wrong with starting off the use of a system without integration or with
manual integration as a valuable way to start getting benefits early and learn
more about the new system. This learning
will often inform the development of the interface and how the systems best
work together.
Here are a few
examples integration between systems in a warehouse.
·
Purchase order information is sent from a
customer to the host system.
·
Order information is sent to a WMS and order
confirmations returned.
·
A WMS send order information to a Pick To Light
subsystem and order confirmations are returned.
·
Despatch information is sent to a freight system
and con-note numbers and costs are returned.
·
A transport management system sends manifest
information to a fleet management systems and receives proof of delivery
information in return.
·
A WMS sends information to a check weight system
and receives a confirmation in return.
·
A WMS sends an Advance Shipping Notice to a
customer’s system.
Lack of integration
adds cost and introduces the potential for errors in re-keying
information. It creates data gaps where
data required by an operator must be sourced from two or more different
systems. It makes reporting of business
information more difficult and more costly, and as mentioned in previous posts
data and the ability to analyse it is one of the most important assets a
business now has.
I sometimes see
businesses with a non-integrated system such as a WMS and whilst I can
understand that the lack of integration got them up and running quickly, there
is no roadmap to integrate the systems and the expected costs of integration
are too high. It is far better to
determine the roadmap to integration with full understanding of the cost before
you embark on a project. Sometimes the
integration costs can blow out the cost of a project and reduce the ROI to
unacceptable levels. In this context
then it may be better to look for an alternative system that has already been
integrated to your host system where the integration costs are low.
Only in the context of
a commitment to full automated integration of all warehouse related systems can
you keep the productivity and service of your warehouse at world class
levels. Let this be your starting point
and aim whenever considering the implementation of a new system in your
warehouse.
This is post is taken from an ebook that is now available as a bonus to members of the Warehouse Performance Initiative (WPI*).
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