Today we start a five-part post on data collection and barcode, for those interested in the basic What, Why and How of data collection.
Our friends at Dynamic Manufacturing Solutions (DMS) in Canada, (a provider of add-on products for Microsoft Dynamics NAV ERP systems with whom our firm partners) recently created an informative white paper that nicely highlights some of the opportunities and advantages inherent in the application of “mobile technologies” including barcoding and RFID. We thought we’d reprise a few highlights for our readers in our next series of posts.
Their white paper, entitled “Keeping the Physical World and Virtual World in Sync: Improving Efficiency with Barcode Technology“ can be downloaded here, by the way.
The whole topic of “data management” has become crucial to business today. In the manufacturing and distribution environments, data that is well managed can become a key competitive advantage. Properly implemented, shop floor data collection systems can dramatically improve order accuracy and inventory visibility while reducing shipping and billing errors. In the long run, companies that make mistakes lose market share, plain and simple. Automated data collection systems remove this obstacle, when properly implemented.
Our own experience implementing these systems over the past decade or more reinforces this point. On the other hand, poor data management can result in a host of bad results. DMS points out a few:
- Inventory Overstock
- Expedited Purchases (rushed, last-minute order fulfillment usually in a panic)
- Lower Than Expected Margins or Lost Receivables
- Decreased Shop Productivity
- Increased Office Overhead
- Poor Customer Service
Shop floor data collection solves these problems with typically rapid ROI and cost recapture. Today’s systems are relatively inexpensive, very cost effective, and have short payback periods.
But we always caution our clients up front: Can you define exactly WHAT you want from barcode? Can you define WHERE it will be applied? Where will it make your operation more efficient? It becomes critical to implement the system that, as DMS puts it “accurately reflects your business processes to ensure you receive the most from your productivity investment.”
We’ll get into the Hows and Whats starting with our next post. Stay tuned…