Small and medium-sized enterprises (SMEs) should align the business, technical, operational and commercial aspects of their organizations to create a clear case for automation and generate business growth, according to a panel of industry experts assembled by global intralogistics solutions specialist Kardex at CeMAT Australia 2024.
Is automation the key to mastering business growth for SMEs? This was the question asked during a round table event organized by global intelligent automation specialist partner Kardex at CeMAT Australia 2024 on 25 July. Leading logistics consultants Francis Meier - Executive Director of Trios Consulting (with more than 40 years’ experience in the intralogistics industry) and Arthur Dardoumbas, Executive Director of ThreeSixty Supply Chain Group (with more than 25 years’ industry experience) discussed the steps growing SMEs need to take when considering automation solutions.
Speaking with Grant Smith, Director of Business Development AutoStore, ANZ Kardex, Arthur advocated getting the balance right across four key aspects of their operations - business, technical, operational, and commercial – to help companies to “make the right decision” when it comes to automation.
In turn, Francis emphasized the importance of SMEs fully understanding their own organization and having a clear picture of where they are and where they need to go before starting their automation journey. “The right level of automation is driven by your data, what you want to achieve, what your growth rate is going to be,” he explained.
Property, labor shortages and safety were identified by Francis and Arthur as the key drivers for businesses choosing automation, with the latter pointing out that in some areas of Australia costs have doubled in the past five years. “One of the key drivers to reduce footprint is via automation,” he added. With fewer people choosing logistics as a career path, in part because of safety concerns, Francis explained that automation provides a means to make careers safer and more attractive to new recruits, in addition to enhancing efficiency and reducing headcount.
Finding the right level of automation for each SME
Arthur and Francis explained SMEs do not have to automate everything and can instead find the “right level of automation for the business”, with automation evolving to become increasingly adaptable and solutions more standardized for easier integration both with one another and with manual operations, reducing lead and ramp up times.
According to both experts, it is important to explore all options with respect to business objectives, growth projections and return on investment over time in order to reach the correct decision about whether and what to automate as “automation may not be for everyone”. However, it can offer huge benefits when implemented appropriately, with the right planning and dedicated resources allocated to it, in the form of project management, training, change management and preparation in the transition.
Douglas Pharmaceuticals uses automation to supercharge fulfillment
A video case study presented during the round table event showed one company ideally placed to benefit from automation. New Zealand pharmaceutical company Douglas - exporting to over 50 countries and selling its products through various channels (distribution partners, pharmacies and direct to consumers online) - has chosen the AutoStore™ systems empowered by Kardex. Douglas Group General Manager of the Consumer Business, Katherine Douglas, emphasized the company needed a solution that could handle increased sales and orders, ranging from large pallets to single SKUs. This new setup is designed to support growth and enhance operational efficiency, particularly in handling increased sales and complex order fulfilment.
Ryan Gibbs, Douglas Pharmaceuticals Warehouse Operations Manager, said the two key challenges the company was facing were “space and efficiency”. Douglas had looked at options ranging from extending its warehouse to using a third-party company, finally choosing Kardex for their AutoStore implementation to deliver increased capacity and throughput.
“One of the greatest things about automation is the scalability that it provides,” Ryan noted, adding, “When starting your automation journey, it’s really important to understand your data and understand your business. It’s a great opportunity to evaluate your processes and really understand where the growth is taking you.”
Commenting on the success of the round table event at CeMAT Australia 2024, Grant Smith, ANZ Kardex Director of Business Development AutoStore, concluded, “The lively and engaging round table discussion highlighted how SMEs can prepare for and successfully integrate automation into their operations through careful planning and a deep understanding of their strategic business needs.
“Kardex FulfillX Software (an innovative warehouse execution system designed specifically for AutoStore empowered by Kardex systems) and the Intuitive Picking Assistant (IPA), a user-friendly picking display responding to movements and enabling ergonomic, fast and error-free picking, were on display at CeMAT Australia, demonstrating how they deliver increased capacity, higher efficiency, scalability, safer working and enhanced accuracy to businesses of all sizes. For companies looking for the best ways to manage their business growth, automation can provide the answer and SMEs can follow the steps outlined to create a strong roadmap to success.”
