Tom Andel

How materials handling is changing the world
May 2, 2008

We’ve all seen those old science fiction movies where the mad scientist vows that his creation “will change the world!” Well, changing the world was the topic of a webcast I just moderated and is now available for viewing on Modern’s website. The theme was “Trends that will change materials handling and the world.”

Our panelists weren’t mad scientists (unless it’s a weekend hobby). However, all of them recognized that materials handling is changing and so are the people who will manage it. The panel was a diverse group, but they had one thing in common: all are members of Modern’s Editorial Advisory Board.

To whet your appetite for viewing this webcast, here are some “soundbites”:

John Hill, Principal, TranSystems | ESYNC—

On the system side, warehouse and transportation management systems are being integrated with sales and operations planning to react to changes in consumer behavior and demand in a more timely fashion. I believe these technologies and systems will help employers attract and retain a greater percentage of the text messaging and iPod savvy generation to fill the expanding vacancies in the nation’s warehousing and logistics workforce.

Dr. John Usher, Professor, Department of Industrial Engineering, University of Louisville—

I keep hearing people saying the future is logistics, but the future is probably anti-logistics. If you look at information flow we’ve moved from postal mail to e-mail and the same trend will happen with various commodity items. In 10-20 years … a lot of items will be produced directly at their point of use. I think as far as global trade, what will be traded is designs. … Instead of something being made in China, put in a container and shipped and stored and shipped again, think of all the energy and expense of moving those molecules. I don’t really need the molecules moved. I can have them here in my office, what I need is the electronic information about how to assemble those molecules. What will be traded is the information content.”

Ron Giuntini, Principal, OEM Products-Services Institute—

Business models are changing from the sale of a product to a solution set which enrobes the product. That has huge ramifications for supply chain and logistics management. …

We’re seeing solutions in which labor is replaced with capital goods investments, either software or hard goods. We’re seeing this in operating leases, where you don’t actually own the product. The OEM finances through its own captive financial arms. There’s software as a service vs actually buying a license for the product. We’re seeing a different animal evolving to solution sets. This is a 30-40 year time horizon, but it’s already started. …OEMs are getting involved with remanufacturing and products are becoming platforms where all the peripherals are added as part of a long term design of a product. …People are moving away from ownership to its utility.

Col. Alan Will, U.S. Marines—

Personnel leaving the military have at least four years of work experience, and those in logistics operations have had experience in distribution facilities and within them experience with warehouse management systems, bar code technology, radio frequency identification and others. They’ve had opportunities to be in leadership positions and management. They have a sense of teamwork and the organization’s objectives. They also bring a good work ethic. They’ve spent long hours trying to accomplish tasks to meet the organization’s objectives. A good thing we’re seeing out there that marries the personnel who are veterans with the private sector is the MHIA’s Opportunities in partnership with the Marine Civilian Development program. They are looking to enhance the Marines’ skills in materials handling operations.

Posted by Tom Andel on May 2, 2008 | Comments (0)