Technology is the Heart of Material Handling Solutions

Material handling technology is hardware and software. In a distribution center (DC) for example, hardware typically comprises conveyors, racks, carousels, shelving and sortation systems. Software consists of multiple levels of complex code that may include low-level logical control code, high-level code that commands and controls groups of material handling equipment, an even higher-level code that manages product inventory and provides reporting, management and maintenance information; and, ultimately, a Warehouse Management System (WMS) that interfaces with the material handling system software. Additionally, the WMS must interface back to legacy or new enterprise resource planning systems. These WMS software interfaces are often the most complex.

Middleware is commonly thought to be a magic piece of software that connects two or more software products that were not designed to be connected. It is often proposed as the solution to practically any unknown software difficulty because it is easer to patch, rather than fix, a true software interface problem. Some software products even change their internal design to work with the most successful middleware products.

There is a wide variety of middleware in the marketplace, both good and bad. Integration expert and Tompkins Partner Mark Buffum answers some questions about the latest trends in material handling technology.

Q. What are the challenges when it comes to choosing technology for a material handling system?

A. There are so many great products on the market today. The hard part is specifying what you need, getting what you specify, and maximizing what you get for your dollar in the process. Maintaining knowledge of the material handling and technology market place is a full-time job. Typically, clients find it difficult to remain abreast of all the technologies, and the best pricing opportunities. Often, long after physical installation of the equipment is complete, companies realize that the components of their system do not effectively communicate with each other. In many instances, clients greatly exceed their implementation budgets, delay their activation dates, and ultimately, spend significantly more money than necessary due to a lack of detailed knowledge of current technologies.

Q. Why is technology important to material handling?

A. Technology is the heart of the material handling solution. Technology provides the proper controls to maximize effective use of the material handling system. When properly applied, technology can make an "intelligent" material handling solution. Intelligent material handling solutions allow users to make decisions based on solid information. Information is a whole lot more than just data. It can range from order information to inventory levels to a product's physical characteristics to shipping information. Information also allows you to effectively apply your human resources allowing optimization of staffing, support equipment, and facilities, ultimately reducing inventory and labor costs, and improving inventory and order accuracy.

Q. How are companies using technology in the DC today?

A. Once material handling automation and technology is optimized within the DC, the trend is definitely to expand outside its four walls. The DC must have more knowledge of its supply chain, both upstream and downstream, and participate more actively to make intelligent decisions that benefit all members of that chain. E-procurement, supply chain planning, and supply chain execution software packages are all rapidly growing in popularity. Often, unfortunately, significant investments are made in software, computers, communications equipment, and implementation services without a comparable investment in updated business practices. Middleware is not a magic pill. We frequently see the results of middleware implementation as a more automated system enabling a poor set of business practices.

Our favored approach is to start with a best practices model developed from a detailed understanding of the operational model. Next, a detailed skills assessment should be performed, and then a facility and technology design must be developed and supported with financial justification. Significantly different technologies are required for different types of functional requirements. The proper technology investment and selection comes only from a detailed understanding of operational requirements and knowledge of current technologies on the market. As technologies continue to evolve and businesses continue to change, your material handling technology and your supply chain needs to evolve with your business.

Q. How does poor middleware hold back the potential of material handling systems?

A. Like so many software solutions the problem isn't poor middleware software products, but how organizations implement them. They often apply the middleware like glue but without properly preparing the software processes they are connecting. The choice of protocol and content are even more important than the technology in this case, and usually receives less attention than the middleware product itself. The protocol determines the timing of data exchanges and the content defines the functionality required between the connecting legacy software processes. To be successful, the middleware technology must be applied in a mature and knowledgeable way to properly implement reengineered business processes that support current operations and are adaptable to future business requirements.

Q. Significant financial and performance benefits can be gained by properly deploying the right technology. What valuable lessons are out there so that companies don't make the same mistakes that have already been made?

A. Avoiding mistakes is what we all believe we are doing when we decide to implement a successful and widely used "package" software product. This false feeling of confidence is extended to our planning as we continue to underestimate the internal effort and commitment it will take to implement any product that performs a significant business function. Often, faith is placed in a vendor to implement its product for us. There are many good vendors out there that can implement a product very efficiently, but the problem often comes when we want them make those products work the way our current system works. Changes not founded on thoroughly reviewed and approved processes are costly and disruptive. While the amount of changes are reduced by an intelligent and knowledgeable selection process, no successful implementation can be expected without understanding that internal processes must be reviewed and matched with "package functionality."

Middleware is finally growing up.

Warehousing technology is becoming much more sophisticated. This sophistication results in enhanced productivity and accuracy. Better order fulfillment tools and processes often result in a decreased need for internal inventories resulting in lower capital requirements. Wireless technology is also greatly expanding picking productivity. Wireless networks now provide high-speed data transmissions and, when designed and surveyed correctly, can provide greatly needed redundancy when corrective system maintenance is required.

More and more, intelligence and capability is being rolled into a collection of computing and networking products. This includes system, applications, and communications services delivered via intelligent computing and cognizant networking hardware and software technologies. The result is a true partnership between management and physical execution software that provides technology and equipment independence for legacy systems. Rather than magic, the new middleware is now able to interpret and respond to data as well as translate it. It is even willing and, most importantly, able to display operational status that can inform, guide, recommend, and in some cases execute, corrective action without human intervention. This is good news.

The bad news is that few companies are in a position to benefit because they do not have the innovation ability to recognize an opportunity, nor the information and communications network maturity to exploit it. Companies need to find true technology integrators that take an unbiased look at all available technologies for successful interfacing of both hardware and software products.