SteelTransforming the Steel Industry with a Digital Sensor Platform
Challenges of the Steel Industry
The total logistics costs are driven by three major factors: warehousing with the highest cost contribution, followed by transportation and lastly, by inventory carrying. While warehouse management technologies account for over US$ 2.7B in global spending, 91% of inventory registration, validation, and booking procedures are still performed manually by human operators, making the picking process step the main cost driver in each warehouse.
An average warehouse typically has from 1K to 100K SKUs to distinguish the different types of assets in their inventory, which amounts to millions or hundreds of millions of single items to be registered and managed by stock, type, and potentially their individual meta-information like expiry dates. Most of the registration tasks require real-time updates.
Major inefficiencies are caused by:
- Error-prone manual data entry often with pen and paper processes
- Visual inspection of product quality and quantity
- Either order picking accuracy that is under 99% due to human errors, or additional labor costs for “double-checking” and/or “random-checking” as an error prevention measure to achieve 99%
- Product quality dependant on predefined expiry dates
Sources: Frost & Sulivan, 2017; Zebra, 2016
Every 0.1% better in Warehouse picking saves $Billions
Warehouse workers need to conduct dozens to hundreds of bin-picking steps per hour - and typically only runs with 95-98% accuaracy - which turns the seemingly low 2-5% rate into hundreds of $Billions in total potential reduction of logistics costs.
Example warehouse: when a warehouse receives a shipment which are normally boxes full of items loaded onto pallets, the first registration occurs when the pallets are stored in the storage bins to log its presence and location into the inventory management system. The next registration re-occurs when boxes or individual items are taken out of storage bin and also when they are reformed into different combination of items into boxes for shipment. Workers visually inspect product quality and quantity throughout the entire process while manually logging their work into the system. Errors associated with these human-assisted tasks can account for up to 5 percent of inventory inaccuracy downstream of the process, resulting in penalties and wasted costs.
Asynos Solution Elements: We are tackling this issue with holistic automization approach from the 1-Cent label that connects the digital twin of every asset in the warehouse with a platform that makes the bin-picking process digitally driven by sensor- and single-uint ERP information.
Asynos' Benefits: Warehouse efficiency with fullstack ERP at all times
Holistic solution to digitize the supply chain at each point of storage and distribution. Our sensor-driven cloud platform enables the tracking of the exact point of when and where the status of your assets have changed on a single item level. Real-time updates on inventory registration and management allows monitoring and analysis via mobile apps and web-dashboards, and enables data driven decisions to improve efficiency and reduce potential costs.
- Visibility to real-time, accurate information
- Decrease losses due to reconciliation by several percent improvement on inventory accuracy.
- Definition of your inventory, location and sensor-based status of assets on single item level
- Analysis and reports for information on your utilization
- Establishment of accurate inventory to prevent stock-outs while reducing safety stock
- Turnkey solution that provides entire readout and registration hardware equipment at cost that requires minimal staff training