Digital overload can help solve the logistics audit
“The more creative people are in companies, and I don’t mean this in a bad way, the more systems and subsystems they can invent. This creates a huge space for errors, and in addition – no one can find out where, how, and why the data is created,” says Petr Jalůvka, Company Representative of Dynamic Future. The solution to digital overload is a logistics audit.
Does your data have a customer?
According to Petr Jalůvka, the biggest problem when it comes to digital overloads are situations where employees in companies “date data” about which they have no idea if they have any customers.
“We often hear that working with data is historically given. So someone transcribes something into a notebook, someone else has to sign it, then the data is entered into the computer, the outputs have to be printed, signed again, copies saved. And the same needs to be written into Excel and some information system. At the same time, one beep of the reader would be enough,” says the Company Representative.
In such cases, errors occur and at the same time the risk of “optimizing” the data according to, for example, predetermined goals, increases. The impossibility of tracing the flow of information and its connections must be added to this.
“It’s remarkable that managers in these cases do not see how much time their employees spend on unnecessary data transfer. The point of automation is not to push a Mercedes around the backyard with five guys. If we do that, something is wrong,” states Petr Jalůvka.
How many systems are necessary?
“Let’s go back to where you started with the implementation and get ERP up and running, we advise companies that are already in digital overload,” recommends Petr Jalůvka.
ERP (Enterprise Resource Planning) integrates most areas of business activity, from supply to purchasing, sales, and even HR. For almost all domestic organizations, this is the basic building block of effective functioning.
“Even if it seems impossible, even companies with ERP in place, if they find a narrow gap, they can build a motorway in it. The data then flows outside the main system, gets lost, and changes,” explains the Company Representative.
In addition to ERP, companies also use MRP (Material Requirements Planning), which does not deal with production capacities – APS (Advanced Planning and Scheduling) is intended for them. According to Petr Jalůvka, the basics also include WMS (Warehouse Management Systems).
“It is critical that these default systems work. Only then can we expand them with specialized solutions. Including, for example, simulation models. Only those who are not afraid to go back to the beginning and start unravelling the paths through which their data flows can expect true results, optimization, and higher and more accurate production,” says the Company Representative of DYNAMIC FUTURE.
Why does everything start with logistics?
Standard projects that DYNAMIC FUTURE implements in companies always start with a logistics audit. This is the only way to find out which systems the company uses and how the company uses them.
“As part of a logistics audit, we examine software equipment, ERP functionalities and other systems that replace any other software. Classically, we discover using Excel as an escape from the main system. There can be no talk of advanced planning at all,” says P. Jalůvka.
A logistics audit will also reveal how data is shared across the company, how often it is updated, and whether it is duplicated or created in inappropriate ways.
“For example, the function of the data pumps is questionable, the update takes place only once a day, which hinders further work, and leads to a one-time overload of the system and people,” says the Company Representative.
A logistics audit can find and describe places that are problematic. According to Petr Jalůvka, without the company solving them, it makes no sense to deploy tools for demand prediction or production planning.
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