Switching from paper to AIDC

Finally leaving the paper environment can mean lower error rates

Industrial Distribution - August 1, 2004

Frank Camean

Pull sheets, pick lists and other conventional warehouse paperwork are tangible, familiar and seem easy to use. The workforce is comfortable with them and their related processes.

So when is it time to replace paper with technology? And why change? Why run the risk of disrupting operations?

The most compelling reason to consider something like automatic identification and data capture (AIDC) is to eliminate processing errors that impact customer service. Whether it's mis-identification of receipts, putaway miscues, mis-picks or inventory inaccuracies, paper-based environments are prone to human error. Who suffers? You do, and so do your customers.

If training and operational process changes have not reduced error rates to best-in-class levels, the next step should be investigation of "paperless" alternatives. Barcode, voice data entry, pick-to-light, even radio frequency identification (RFID)—supported by a radio frequency data communications (RFDC) or wireless backbone—permit real-time task management.

Significant increases in volume can be another trigger for consideration of a move to a paperless environment. Try shuffling through hundreds of sheets of paper to find that one pick list for a customer's order that needs to be changed before shipment. Or try marrying that one case on your staging dock, out of the hundred that are sitting there, with its documentation.

Volume increases in a paper environment hamper your ability to provide a quick response to your customers. Monitoring order status across hundreds or thousands of orders in a paper environment is significantly more challenging than with a handful of orders. If you foresee significant increases in volume and want to maintain your service levels without sacrificing accuracy, perhaps it's time to consider new technology.

That said, there are those who would tell you that barcode scanning, for example, will decrease throughput and picker productivity. If this is a possibility, consider a look at voice, pick-to-light or RFID. And, don't overlook the value of increased inventory accuracy and reduced error rates as you assess the possible trade-offs.

Streamlining business processes and fine-tuning operations are more easily achieved with AIDC technology than with paper-based approaches. AIDC facilitates real-time data capture and performance analysis whereas paper does not. In an RFDC environment, managers can readily fine-tune operations and address inefficiencies. They can define key performance indicators and targets while monitoring workforce performance in real time to assure that performance levels are properly maintained.

Paper-based systems don't lend themselves well to this type of optimization. In a paper-based environment, the data is historical, gathered off-line, manually compiled and requires hours of analysis before corrective action can be initiated. And, by then, the damage is generally already done.

AIDC technology supports automatic activity monitoring, identifies inefficiencies quickly, requires minimal overhead, and allows managers to manage, not shuffle paper.

Other benefits of moving to paperless operations include improved visibility of inventory and order status for customer service, sales and trading partners, reduced direct and indirect labor costs, reduced safety stocks, fewer stock-outs, reduced backorders due to lost stock, and many more. Is it time for you to consider a change?