New Business Model to Master Shopfloor Complexity and Competitive Threats

shopfloor complexityIt is no secret that operational complexity on the shopfloor is considered one of the top challenges we all face, and not far behind, we have cost reduction, efficiency increase, and user engagement. It is all equally important to master to stay ahead of the competition.

The most common way to manage shopfloor complexity is to use a warehouse management system (WMS). The challenge is that traditional warehouse management systems on the market use 50-year-old scanning technology combined with sub-systems, like a labor management system, as a backbone to solve operational complexity.

Another way to solve operational complexity is by adopting new business models. One of the most compelling new models is software built upon location awareness and in-motion resource management that intelligently automates manual decisions to decrease complexity. This significant paradigm shift eliminates manual intervention and the need to scan items at every interaction and creates a system-run environment with no manual intervention.

Intelligent push-task technology and dynamic 3D view distribute tasks automatically to humans and machines and make changes on the fly to overcome disruptions and calculate optimization opportunities. As a result, the operation has gone from a complex manual operation to an efficient system-controlled environment.

The combination of intelligent software with AI execution capabilities and visibility using location technology gives warehouse and factory operations a tool to decrease complexity and at the same time decrease costs, increase efficiency and user engagement.

Bengt Tuner is the Group Chief Executive Officer at Locanis. Extensive experience as Entrepreneur and expert in Supply Chain Management, Sales & Marketing, Supply Chain Execution Software, Innovation & Digitization, Start-Ups & Corporations, People Management & Leadership, Strategy & Organization and Lean Management. More than fifteen years experience as CEO and Senior Manager for small, medium and large transport & logistics companies and more than ten years experience as CEO for IT companies building front-end Supply Chain Execution Software.

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