Every automation project has to begin with the definition of its goals. Those goals are very likely connected to improvements in an organization – such as employee work activities and improving the overhead for getting those activities successfully completed. Finally, when the project is defined and implemented correctly, it has to deliver a financial benefit that outweighs the cost for the automation.
Let’s look at all three of these challenges using our mobilePLUS solution as an example of an automation tool.
People Challenges
In most organizations, our employees are our largest single line item cost annually. Then again, they are the ones that keep the ship moving, right? Even a 1% average in improvement on how they perform their tasks can have a substantial impact on the productivity of your company – and by extension, your bottom line.
When it comes to fixed and compliance inventory events – these are generally activities we’re expecting them to perform on top of their regular daily tasks. As a result, we sometimes see issues in understanding the work, commitment to completing it quickly, and possibly some not-so-positive attitudes.
The addition of an automated solution can make an inventory event a much easier assignment to take on – resulting in some positive benefits for everyone.
Process Challenges
The three of the biggest complaints we hear regarding inventory activities are that there is too much paperwork, there are too many steps to getting it done and it takes too long to complete. And that’s just looking at the inventory task itself. Because staff time and effort are being consumed with the inventory assignment, their other work is not getting the typical time and attention it usually would – which often leads to gaps in the production and quality of the work.
This always reminds me of coaching my daughter about balancing different activities with the daily responsibility of homework. As you may have experienced in your home – one project/game/dance recital/whatever – can inch into what is usually homework time – with less than stellar results.
I’ve always told her that with homework, delivering the wrong answer is usually the same as not delivering anything at all. That rule still applies when we’re working adults.
When you improve processes with an automation project, all parties benefit. And happier (or at least non-frustrated) employees have better corporate results.
Profit Challenge
Ultimately, every motivation or decision needs to have a positive value for the organization – and generally, that means a contribution to our profits. Those profits with improved asset management come in two flavors – improved operating expenditures & improved information for planning and budgets.
Operating Expenditures:
- Better utilization of existing assets through visibility
- Avoid unnecessary expenditures for new assets
- Decrease expenses for insurance, taxes with “ghost assets”
- Decrease labor for managing and tracking assets
- Improved compliance reporting
Planning and Budgets:
- Delivered when and how you need it – complete and timely
- Reliable and required data – true information
- Having consolidated information – a single source of truth
- Part of your ERP platform – overall strategic value
Whether asset management, warehouse operations, or general accounting, ALL automation projects share in needing to address these three challenges. While there may be other contributing factors, these three still remain one of the core elements in your decision. When you map out the benefits you plan to achieve in these areas – it becomes easy to determine if this automation is right for your organization.
Are you weighing the challenges and potential benefits of adding automation? Let’s talk.
