Reducing Lead Times in Material Handling

New Technologies Mean New B2B Expectations

material handling facility

Photo Courtesy of Dematic

The expectation of faster delivery times in all industries is a sign of the times.  This reality challenges current lead times for integrators and suppliers at every level.  The bottom line: it’s time to catch-up and keep up, or risk losing business.

Your Client is a Consumer

Today’s B2B clients are no different than B2C consumers:  they live in a single channel world of email, text, web and television. And most importantly, they are increasingly bringing their “I want it now” expectations to the office.

In light of these new realities, a fresh look at our manufacturing, engineering and installation process is needed.

My focus in this article is the manufacturer-integrator level, and what can be done to improve the shipment and installation of integrated systems.

But first, some background about where we are at and how we got here.

The Status Quo

In today’s eCommerce world, consumers demand orders to arrive in two days, next day – and even same day. But this expectation is not limited to what we purchase online as consumers.  In the Systems Integration/Material Handling world, we can clearly see the rising demand for faster delivery from suppliers, as well.

The Challenge: despite these technological advances, our industry as a whole is still quoting lead times that have not changed in years or even decades!

This reality begs the question: what are we doing within our industry to increase the speed of delivery of our products (conveyors, sorters, picking solutions, software, etc.) in response to this technological and cultural shift?

LED dashboard for automated pick system

Photo Courtesy of Lightning Pick Technologies

Meeting the Challenge

In an ever-increasingly connected business world, there is a single flow of customer service.  Each of us is ultimately beholden to the end-user.  Their wants and needs – and their new high-speed mindset – has become our responsibility.

And like all other customers, our success relies upon our ability to earn their trust that we will deliver according to their expectations.

Lead Times and Customer Satisfaction

Admittedly, I may have exaggerated the “Lead Time Issue” a bit. The B2B world, while very demanding, still understands we cannot deliver fully integrated systems overnight.

  • As I always say “no two systems are alike.” Every integration project has unique characteristics, such as scope and specific deliverables.
  • Warehouse Control System or Warehouse Management System can add time to the production timeline. (although, many software suppliers are reducing the time it needed to define and configure a system.)

Nonetheless, our clients are expecting shorter lead times and quicker results from integrators on major projects, just as their own clients expect it from them.

The fact is, customers rely on our expertise to help shorten the delivery time of their product.  The sooner we help them improve their operations, the sooner they can increase their service levels and improve customer satisfaction.

Here are a few thoughts to get us moving faster!

tin can telephones

Communication is King

Accelerated lead times begin with your client relationship. It is critical to set an expectation of a high level of communication from the start.

First on the list is to get the order issued.  While we always have contract negotiations (final defined deliverables, terms and conditions, schedule demands, etc.), you must impress on the client how important issuing the order is to their desired results.

Keep in mind, regardless of whether or not the order was delayed, or if purchasing “was on vacation” that week, the client will always expect the schedule they wanted from the start.  And unless otherwise convinced, they are looking to you to deliver it.

The bottom line? Speak up early and often. Stay in touch.  Don’t let days go by expecting the client to call you.

Similarly, open the channels with your partners. For instance, as soon as the order is received, get your engineering team engaged.  Including a clearly defined delivery date.

Reliable Vendors

Now the fun begins!  If we did a good job convincing the client to buy from us with a well thought out engineered design and concept, then you should be at least 80% of the way with your engineered drawings.

If field conditions have been verified and proven, even better. This will only help expedite the development of your approval drawing set so that you can submit your orders for manufacturing.

Today’s high-tech manufacturing partners provide drawing tools that allow you to expedite engineering time, and reduce costs.  Resources such as this allow integrators to provide well thought-out designs to our clients (some even in 3D) and also allow us to expedite the proposal process.

This is an example of a team-focused partner.  They have developed a system to improve your project execution and deliver on time.

On the other side of the relationship equation, don’t overlook your manufacturing partner’s point of view.  They are beholden to their suppliers (steel, bearings, pulleys, motors, etc.) and sometimes this will affect quoted lead times. The real pros in the industry always take these variables into account and provide integrator-partners with accurate dates.

Always be sure your supplier is one that consistently delivers on time.  Furthermore, don’t be afraid to inquire about the supplier’s production schedule.  You don’t want to get involved with an over-committed partner.  They may be too busy, and are over-promising to get the order.

Ultimately, we all need to build a productive community of partner relationships.  A network that we can trust to be communicative and responsive.

Time Saving Tip:

Keep in mind how simple or complicated the prospective hardware can be constructed on site. Some manufacturer’s products assemble much easier and quicker than others:

In the parcel handling world, bolted conveyors install quicker than custom weld-up conveyors, and special weld inspections are not required. This could expedite most system installations by many weeks.

Transportation services

Another simple factor in expediting the delivery of your system is managing the shipping of your hardware to the project site.

How often do we lose focus on this phase of the process? Having the right shipping service or carrier (expedite, guarantee delivery date, etc.) can help you avoid adding days to the schedule.  A professional outfit will make sure shipping instructions are not ignored and will understand the urgency of your delivery.

  • Constant vigilance: When “schedule” is the name of the game, it is paramount to keep your finger on the pulse of your materials, from order entry at the factory all the way through delivery at the project site.

worldwide digital connection

Conclusion: The New Normal

Today’s client demands increasingly smaller windows for execution.   Similarly, we have every reason to be asking the same of our partners: designers, software engineers and manufacturers alike.  We’ve seen in this article that through proactive communication and adopting new technologies, we can shorten lead times.  With each supplier’s contribution, we can provide cumulative improvements in final delivery dates.

The arrival of system hardware to the project site is a major milestone.  And for sure, installation and integration have their own set of variables that need to be managed as well.  But at the heart of a successful project is a strong results-focused attitude, and this means making sure all contributors of a project are fully invested in, and understand, their responsibility.

In today’s marketplace, the needs and wants of the end-user has become the priority of every supplier on the project.  Adopting an entrepreneurial, teamwork attitude with our extended community of partners is the only way to keep our shared customer satisfied.

Integrator leadership is the essential element to building an effective team.  In this position of trust, the savvy integrator will successfully manage lead times of all producers to keep the project on schedule.

#fulfillmentcenter #distribution  #materialhandling