LEVERAGING SMART WAREHOUSING TO INCREASE SUPPLY CHAIN EFFICIENCIES A Presentation by ARIF A. SIDDIQUI Founder & Director Coign Consulting
TABLE OF CONTENT 1. Overview of the scenario in UAE 2. Evolving scenarios in UAE 3. Efficient Operating Environment 4. Efficient Design Drivers 5. Advance Analytics & Machine Learning 6. Summary 7. About Coign Consulting
OVERVIEW OF THE SCENARIO IN UAE
SCENARIO IN UAE Government and government related entities (GREs) continued heavy investment in manufacturing and supply chain complementing infrastructure and facilities underlining the UAE s ambition of becoming a more diversified economy. Transformation from a Transhipment based Economy to Consumption based Economy GENERAL SPEC WAREHOUSING INFRASTRUCTURE BEST IN CLASS WAREHOUSING INFRASTRUCTURE Warehouse s role changing from transhipment centres to storage, distribution and value added centres. Despite a modest decline in 2016, A-grade (better designed) modern infrastructure continues to command a premium over basic standard feature warehouses. BEST IN CLASS WAREHOUSING INFRASTRUCTURE GENERAL SPEC WAREHOUSING INFRASTRUCTURE Best in class infrastructure Low in Supply & High in Demand General spec warehouse High in Supply & Low in Demand
EVOLVING SCENARIO IN UAE Current Warehousing infrastructure is in alignment to achieve Logistic efficiency Higher units per transaction and lower number of transactions SIR MO FARAH Men s 5,000 & 10,000 Mtrs World Champion The transformation is towards, Lesser units per transaction and higher number of transactions FAST AGILE CONSISTENT SUSTAINABLE However, both scenarios will co-exist.
SMART WAREHOUSE PROVIDING AN EFFICIENT OPERATING ENVIRONMENT
EFFICIENT OPERATING ENVIRONMENT An efficient operating environment should be able to seamlessly and timely handle
EFFICIENT WAREHOUSE DESIGN DRIVERS The challenge will be to design an infrastructure which is Cross Sectorial to deliver Operational excellence DESIGN DRIVERS SUPPLY CHAIN EFFICIENCIES 1. Seamless integration of building structure to cross industry processes High Compatibility Low Transition Time Less Obstacles 2. Managing a complex matrix of vehicle types Reduced vehicle TAT High no. of vehicles handled Damage prevention 3. Optimum storage capacities 4. Picking efficient storage solution Reduced storage cost Improved order fulfilment rate
EFFICIENT WAREHOUSE DESIGN DRIVERS DESIGN DRIVERS 5. To integrate new machines and automation equipment SUPPLY CHAIN EFFICIENCIES Flexibility to accommodate new processes Improvement in flow and speed High productivity 6. Intermediary processes High consistency Zero errors Increases speed of movement 7. Smoothening of flows Man, Material, Vehicle & Equipment Lessens material handling cost Accountability is established Loss and damages are reduced
With the evolving trends changing consumer behaviour and fragmentation of fulfilment pallets to pieces to eaches, the next generation of smart warehouses will drive supply chain efficiencies by using data analytics and executing through machine learning.
ADVANCE ANALYTICS & MACHINE LEARNING TO IMPROVE SUPPLY CHAIN EFFICIENCY
ADVANCE ANALYTICS & MACHINE LEARNING Demand for smaller unit distribution capabilities, quality of infrastructure and integrated services will propel the need for organised players with advanced analytical capabilities. Data analytics will help in determining which processes can be standardized and automated, so as to deliver error free and consistent output Increase in demand for software and hardware which facilitates an easy operating environment and helps in better data collection and recording Machine learning will enable less errors in operations as an automated process delivers consistent performance tirelessly. This evolution will have to be supplemented by development and deployment of skilled and semi-skilled human resources
SUMMARY
We are WAREHOUSE FUNCTIONAL MASTER PLANNERS & INTRA-LOGISTICS PROCESS LAYOUT DESIGN SPECIALISTS MASTER PLANNING & BUILDING LAYOUT DESIGN INTRA-LOGISTICS LAYOUT PLANNING AND DESIGN OPERATIONS PROCESS IMPROVEMENTS SOURCING ASSISTANCE TECHNICAL & COMMERCIAL EVALUATION WAREHOUSES, DISTRIBUTION CENTRES, LOGISTICS PARKS & CONTAINER FREIGHT STATIONS