The Sage X3 platform is a powerful tool that allows you to track inventory and production data in addition to the core finance functions customers typically roll out first. When you use X3 to its full potential, you get traceability/tracking, better production cost data, and the ability to create manufacturing metrics that should result in improved efficiency.
We typically see customers start with the standard X3 install, then add the manufacturing and ADC tools. However, simply enabling these features won’t help you if you are not feeding the system good data on a consistent basis. So what is missing? How do you increase the ROI of your project?
You will generate the highest ROI for your project when you simultaneously implement both the data housing (manufacturing, ADC) features in X3 with the data capture tools (Barcode, RFID, Sensor Appliances, Labor Tracking Appliances) on your production floor and warehouse.
We’ve talked about ADC in the past and the 8 components you need for a successful implementation. ADC is a great first step and should create immediate benefits whether you choose barcode or RFID. But adding better data capture tools will reduce your cost of data collection, can remove the human element (errors, forgetting), and generally improves the quality and amount of data you collect. Better data at a lower price! Essentially, having the right tools allows you to stop paying employees to collect data and instead pay them to produce — what you originally hired them for.
What are some of these tools?:
Fixed RFID: Whether deployed at a dock door to automatically track pallets in/out or at a piece of equipment to automatically issue raw materials or create new WIP, fixed RFID offers tremendous value because data capture is fully automated. You can also deploy RFID portals between your production floor and your warehouse so you can reconcile the human-dependent put-aways with the actual flow of product in your facility. This gives you the data to enforce policies and correct mistakes immediately, rather than at the dreaded physical count once or twice a year!
Sensor Appliances: Did you know you can connect just about any machine or sensor in your facility to X3? Sensor appliances allow you to automatically capture machine health, process temperature, metal detector output, flow gauge data, and just about anything else you would like to capture and associate with a work order running in X3.
Labor Tracking Appliances: Need an easy way to track which employees are in a particular work cell and for how long? Want to scan a work order and have an easy way to enter piece count or defects? Touch screen appliances can be deployed on the production floor to easily capture this information and send it to X3.
X3 does so much more than simply tracking your finances. The integrated manufacturing and warehouse manufacturing capabilities are powerful tools. But these tools are only as good as the data you feed them. Whether it is the increased need for traceability data, the desire to improve profitability in the warehouse by reducing chargebacks or increasing inventory turns, or the need to increase sales at a higher profit by increasing efficiency and capacity on the production floor, customers are increasingly accelerating deployment of these data capture tools to be used with X3. By reducing the cost to acquire production and warehouse data, manufacturers are able to feed X3 more data and more accurate data. This unlocks the full power of the Sage X3 platform and delivers the highest ROI.
RFID technology is no longer the new kid on the block.
With the technological landscape constantly changing, it seems like everyday there’s some new gadget that promises cost savings and a higher level of efficiency. With appropriate skepticism, manufacturers are asking themselves “Is it worth it?”
The answer is YES… RFID technology has come a long way since its introduction into the identification market place so many years ago. Over 10 years after Wal-Mart mandated RFID tagging for its suppliers, development teams have been working on the problems that have hindered RFID adoption in the past. Manufacturer concerns such as reliability, profitability, and stable international standards have been addressed and made adoption much more financially feasible and desirable.
The benefits of RFID implementation are no longer disputed, in one of many studies that compares manufacturing companies with and without RFID, it was concluded that “RFID technology offers significant benefits for firms through improved inventory ratios and sales efficiency, which translates into higher profit for the firms”*. These higher profits stem from a combination of lower days-in-inventory and lower per-employee costs which can both be achieved by RFID implementation. We have moved from asking “does it work?” which is no longer in question, to looking at the specific business problem and asking “does it make financial sense for my business?”. If you are in manufacturing or warehousing and trying to improve efficiency, enhance traceability compliance at a lower cost, cut shipping fines, and reduce stock outs, the answer is usually not only yes, but yes with a payback period of less than a year!
Enhancements in reliability and efficiency have had a direct effect on demand. According to Enu Waktola at SMARTRAC, with an estimated 3-4 Billion RFID-tagged items in 2013 (UHF only), and a 35%-40% YoY growth, it is easy to see the level of market penetration that RFID technology has achieved**. As a result of an increase in demand and decreasing tag and equipment prices, RFID system integration is now offered by more market players than ever.
*Chang Does RFID improve firms’ financial performance?)
**(SMARTRAC Internet of Things Offers Huge RFID Growth)
Join fellow manufacturers who are enjoying an 80% improvement in shipping and packing accuracy*.
Your company’s products constitute the core of your it’s success. Units that go unaccounted for and unsold hold back your company from reaching its full potential. We encounter so many companies that have “searchers” or “seekers” looking for raw materials that are holding up production, looking for WIP that needs get to final packaging and is holding up an important customer order, and looking for finished goods that need to ship today to be on time. Keep doing this wrong and you start double ordering and double producing, gradually hacking away at profitability. Probably more important are the stories of upset or lost customers due to consistently late or incorrect shipments. The profitability problem is solvable in the future, the lost customers often don’t come back. There are proven solutions to help you address this now.
A question that every manufacturer should be asking themselves is “Would I bet money on my inventory data?” This is an important self-assessing question seeing as every unit of merchandise your company produces and every piece of inventory your company owns represents an investment and potential profit for your company. Effective warehouse management is the key to increasing your return on investment. The best way to increase ROI is by shifting the attention of your workers away from scouring the warehouse looking for product and back to what they do best, producing. This can be done by continuously identifying and tracking everything that comes in and out of your facility. A hybrid barcode/RFID data collection system allows you to do this efficiently, effectively, and accurately. Barcode/RFID implementation leads to lower days-in-inventory and lower per-employee costs which result in higher sales efficiency.
The first step is getting away from manual and paper tracking. It just doesn’t work well because of the labor cost and the errors. Simply adding barcode scanning can be a huge leap forward. The next level increases efficiency by adding RFID tags. Not only can you accelerate the scanning process, but you can automate the data capture and remove the human element. This means no more forgotten scans and your ongoing labor cost of data capture goes to zero after the initial investment. By deploying a hybrid solution that uses both barcode and RFID, you minimize your ongoing consumable (label/tag) expense while getting as much automation as possible to free up worker’s time, increase the amount of data you collect, and reduce/eliminate bad data.
The leaders in the industry have implemented these systems and are seeing an 80% improvement in accuracy. Your business can reach that level of management and visibility too. The abilities that barcode/RFID technology can offer your business do not stop at the warehouse, the technology can improve product traceability and increase your management team’s understanding of what’s going on at all levels of the supply chain.
The Sage X3 platform is powerful and contains a basic warehouse management system (WMS) in the standard offering. To unlock these features, customers often choose to enable the automated data capture (ADC) screens. Let’s take a brief look at what is required to make an ADC expansion a success.
Barcode/RFID scanner mobile computers. The key to data capture efficiency is the ability to quickly capture the product data you need. The choice of barcode, RFID, or a combination of both are specific to the application, but interchangeable hardware to support all three cases are readily available.
Client-side software to run on the scanners. The X3 ADC screens runs in VT100 terminal emulation mode, so any VT100 emulator will work. However, to enable ADC enhancements like accelerated login and automated menu navigation and the ability to seamlessly transition between barcode and RFID, a basic emulator is not enough and more advanced software is required.
ADC licensing and setup. All the basic ADC functionality is included with the X3 software you already have. There is a license fee for each device that will communicate with X3. Additionally, you will likely want to configure and possibly customize ADC to your business process.
WiFi System. You will likely need to install or upgrade your existing WiFi system. The mobile scanners send their data back to the host server running X3 over a wireless network. The design of a WiFi network in a warehouse or manufacturing facility is a specialty that creates the need not only for adequate coverage, but special design techniques to avoid data loss, dropped connections, and prevent unwanted noise traffic on your wired network as inventory levels change.
Printers (either barcode, or barcode/RFID combo). You will need to attach identification labels to the each, cases, pallets, or other standard unit of measure you want to track. Most customers choose to print these on demand.
Consumable labels. See above. These are the barcode or RFID tags that will be affixed to the items you wish to track. They can be barcode-only or barcode with RFID.
Reusable labels. These more durable labels are affixed to reusable containers used in manufacturing for WIP tracking. They are often applied to trays, totes, or bins to allow track and trace.
Address plates. Your WMS functionality requires you to “put away” items in specific address locations. This is best accomplished with barcode and/or RFID address plates that allow you to easily scan the address into the correct ADC field.
It is important to know that your chosen RFID/barcode vendor can work with your SAGE reseller/consultant to help you every step of the way. When you consider the various stages from design through implementation, training, and support, you see the necessity in having an RFID/barcode expert that knows how to maximize your system and goals. It is key to find a company that offers scanners, proprietary, proven X3 ADC compatible software for the scanners, WiFi system (design, hardware, install, support), printers, and any barcode/RFID labels/plates you will need for your project. With that expertise and knowledge, your project will surpass expectations and give you a new level of information and insight into your operations.
According to the US Government Bureau of Labor Statistics, labor productivity rose in 77 percent of the 57 detailed manufacturing industries during 20141. So the mandate from the boss is to increase output.
“Oh, and by the way, you can’t hire anyone new and overtime is not an option” your boss adds while turning to walk away.
“What do you want me to do?”, you respond.
“You’ll just have to get more efficient like all those other companies”, your boss responds.
Adoption rates for passive ultrahigh-frequency (UHF) RFID have been a disappointment to anyone with any knowledge of the industry. To understand why that is the case, let’s take a look at one of the most rapid and successful product introductions of any consumer electronics technology in history—the video transition from VHS tapes for VCRs to DVD disks—and alter it to resemble the RFID buying experience.
It has been commonly believed, and widely repeated, that the barrier to passive ultrahigh-frequency (UHF) RFID adoption is the cost of the tags. Deeper investigation and critical thinking indicates that while price is a contributing factor in certain applications, there are other problems that the industry must address in order to accelerate the technology’s adoption. I believe that there are four challenges limiting RFID adoption: tag cost; industry fragmentation and segmentation; cost of software infrastructure replacement; and environmental dependence of the technology.
RFID technology is no longer the new kid on the block.
