Even when your warehouse operations appear to be running smoothly, change and disruption are constant battles that supply chains must fight. Black swan events, emerging technology, new regulations, and shifts in consumer demand have created an increased need for “always up-to-date” functionality. While steps can be taken to mitigate risk, when changes occur it’s still up to you and your team to adjust and ensure new warehouse capabilities are implemented quickly.

If your organization previously reviewed, dismissed, or put off moving your WMS to the cloud, it’s time to reevaluate. Decisions that seemed to make sense last year or even last quarter, likely look very different through today’s lens. With business models drastically changing and uncertainty lingering in every corner, what if you could offload critical IT responsibility to an organization you trust to manage it all for you?

Since the Industrial Revolution, manufacturing processes have undergone several revolutions characterized by ever-greater automation. Today, the fourth industrial revolution, known as Industry 4.0, takes advantage of big data and machine learning to drive smart, highly automated processes. A pretty familiar concept.

Less well understood, but equally momentous, has been a parallel evolution in asset maintenance. Maintenance 1.0 relied on highly-trained specialists to visually inspect machinery. Maintenance 2.0 gave humans instrumentation to measure how equipment was running, while Maintenance 3.0 used real-time monitoring to understand the condition of an asset systematically and programmatically. Now with the Internet of Things (IoT) collecting sensor data, Maintenance 4.0 sees that data captured in a data lake repository, and algorithms and analytics applied to better predict when a given asset will fail, and how to correct the problem—preventing a potential food safety issue.

Wonderful people like you are part of the significant reasons why we are so thankful this year. We have enjoyed connecting with you and are grateful for your warm reception of our communications.

Happy Thanksgiving from all of us at Independent Computer Consulting Group - ICCG.

The urgency of data security and privacy can’t be overstated. In 2021, the global average cost of a data breach was $4.24 million, representing a 9.8% increase over 2020. Yet the immediate costs are a trifle when compared to the incalculable, lasting brand, reputation, and business damage that a data security incident causes.

Understanding the present threat

Risks associated with information security threats increase minute by minute. Bad actors with malicious intent are continuously evolving their strategies and attempting increasingly creative and sophisticated security breaches. The constant potential threat of cyberattacks and security breaches can be taxing on IT teams and organizations that need vigilance, resources, talent, and educational resources just to stay ahead.

The number of potential attackers is also expanding to include not only independent attackers and small groups, but also state-sponsored hacking organizations that are much better organized and funded. These larger groups can afford to devote multiple resources to breaching the defenses of small and large organizations over a long period of time—a level of commitment attackers once reserved only for the most strategic targets.

Asset performance is key for food and beverage processors to reliably produce safe food at the lowest cost. This goes beyond only having the equipment available. Asset performance is one of three variables used to calculate the Overall Equipment Effectiveness (OEE)—the other two variables are availability and quality. In food and beverage processing, quality is primarily about food safety, which is non-negotiable. Studies show that a food safety issue leading to a recall in average costs $10 million. The associated brand damage can be unmeasurable.

The state of equipment and the behaviour of workers have a big impact on food safety. Eliminating food safety risks and risks to workers are the primary responsibilities of any food processing company. Numerous food safety issues caused by contaminations with extraneous material like metal coming from broken filling equipment, or grease or detergent remnants are reported to the FDA and RASFF every year. Cross contamination, pathogens, and faulty labeling are other possible reasons why food and beverage manufacturers must recall products

The fashion industry thrives on innovation. It’s what the consumer wants from us—something new, not just clones or replacements for worn-out items. New product introductions are critical to business success, but only half of them achieve the profit objectives set before launch. To improve the ratio of hits to disappointments, it is essential to listen to the consumer and collaborate with the supply chain.

The consumer sets the bar for value and the supply chain determines whether you meet or miss it. The next decade will call for significant materials and process innovations at both the micro (product) and the macro (enterprise, supply chain, and industry) level. If shorter, more frequent product introduction cycles were the only challenge… but they’re not. At strategic planning levels, the industry must figure out how to convert to more sustainable ways of doing business, starting with raw materials and research and development and expanding product lifecycle management practices to include recycling. At the operational level, rethink the way you work internally and collaborate with supply chain partners to eliminate waste throughout the value chain. If a process doesn’t add value for the consumer, don’t do it. Optimize the entire value chain and focus it on value creation. Innovations arise at every stage, when all the partners can see the value chain as a whole.

In a data-driven world, navigating the challenges of today’s supply chains requires an unprecedented level of agility. This calls for supply chain tools that deliver network-wide trading partner connectivity to enable real-time visibility, demand and supply planning, and production scheduling insights.

Fortunately, modern tools deployed in an organization’s technology stack can digitally transform the supply chain, revealing new opportunities for innovation across the entire network.

At the same time, automation and advanced analytics delivered in a digital environment can synchronize production and distribution activities to match demand.

Rising costs, increasing complexity, growing customer demands, and expanding global supply chains are all intrinsically linked challenges that manufacturers and distributors face on a daily basis. Meanwhile, expanding omni-channel markets are forcing manufacturers and distributors to not only change how they sell to customers, but also redefine who their customers are. And customers are exerting even further
pressure with demands for customization and personalization of products.

Global expansion adds to the challenge of maintaining visibility into inventory, shipping, and tracking—often across borders, continents, and oceans. In addition to making sophisticated warehouse operations even more complex, this all makes it difficult for manufacturers and distributors to remain competitive, keep costs down, and maintain profitability. Ineffective order management, excessive labor costs, and inefficient asset use just exacerbate the problem. To tackle these challenges, manufacturers and distributors must reconsider how their warehouse management practices, processes, and systems need to change in order to improve warehouse productivity, visibility, and costs.

1. Are we organizationally ready for significant change?

Organizations are only as good as their people, and manufacturers must look carefully at whether they have the right people and culture to support a different way of doing things. It is the people who will be responsible for implementing change, and they should be ready, committed, and on board with any type of transformation plan.

An organization’s culture can make or break a digital transformation project and “organizational change management” is one of the key components of such a project. Organizations should aim for an inclusive culture where people feel like they are key contributors to the company’s future success.

To achieve this, management teams should encourage a culture of openness to help employees step forward with their ideas. All change, and all transformation, starts with an idea – so it’s important for people to feel empowered to put their ideas out in the open.

Many consumers are passionate about the quality of their food, the health implications, and the environmental footprint made by food manufacturers. To meet their shifting expectations, food and beverage manufacturers must speed product introductions and develop new offerings that reflect the changing views on what is fresh, healthy, and mindful—and technology can help. It’s not just taste, freshness, and convenience that drive food purchases today. Conscientious consumers also focus on health, wellness, and social issues as they shop for family meals. They take nutrition labels, visibility into suppliers, humane treatment of animals, and environmental sustainability into consideration when shopping for food. While these expectations put added pressure on food and beverage manufacturers, companies that turn to technology to help, should seize the opportunity. Meeting the demands of today’s socially aware consumers can be a valuable differentiator.