Technology has revolutionized numerous aspects of production processes. Gone are the days when human labor was solely relied on for these processes. Today, technology has been adopted in an effort to ease the production process. The adoption of technology has given rise to such phenomena as warehouse management systems. It is true that there are many firms that are yet to embrace these systems. However, those that have integrated these systems continue to enjoy a wide range of benefits. These benefits include time savings and value addition (Atkinson, 2002). Companies are abandoning traditional approaches which mainly involved stacking items in warehouses. Now, thanks to warehouse management systems, it is possible for firms to ensure that goods flow smoothly (Atkinson, 2002). Toyota is one of the numerous companies that have embraced warehouse management systems. In this paper, the benefits that Toyota has enjoyed in the UK as a result of these systems are explored. In general, the paper examines the important role that state of the art technologies play in warehouse management systems.
The case of Toyota in the UK
Toyota is a multinational company with a presence in the UK. The success of this company hinges on a constant and uninterrupted supply of spare parts. The company wished to ensure that its clients in the UK did not suffer inconvenience as a result of poor supply of spare parts. It established a warehouse management system that integrated state of the art technologies (“WMS Drives Efficient”, 2002). Before the adoption of the new system, the company faced challenges in tracking the huge number of parts. This changed when the warehouse management system was put in place. One of the key features of the system is that it allowed for tagging (“WMS Drives Efficient”, 2002). The tagging enabled the company to keep a close eye on different parts. The frustration and time wastage that was experienced in the days before the new system was integrated into the company’s delivery process were addressed. Additionally, the new system enabled Toyota to ensure timely deliveries. Furthermore, thanks to the technologies that were integrated into the system, it was possible for Toyota to include very specific details about each part (“WMS Drives Efficient”, 2002). This was not possible before the company introduced the new system. The gains that Toyota enjoyed as a result of the warehouse management system highlight the benefits that accrue to firms which embrace state of the art technologies. In the discussion that follows, the importance of adopting state of the art technologies in warehouse management systems is explored.
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In his article, Atkinson outlines the benefits that firms that infuse their warehouse management systems with state of the art technologies are set to gain. He mentions that through these technologies, companies are able to diversify their operations (Atkinson, 2002). Instead of being mere conduits and storage spaces, warehouses that are fitted with modern technologies are able to add value to products. Essentially, modern technologies elevate warehouses to positions from which they can perform multiple functions. These functions include light manufacturing, kitting and assembly. These functions indicate that modern technologies are making it possible for warehouse systems to gain new applications and become more versatile. The ultimate beneficiary from of the added functionality is the party that owns and operates the warehouse. These functionalities translate into higher income and lower costs. Today, the warehousing and supply industry has become very competitive and to survive, firms are being forced to innovate (O’Neil, 2016). It is clear that companies that have adopted state of the art technologies are able to survive the fierce competition. Overall, state of the art technologies equip warehouse systems with new functionalities and capabilities that make diversification possible.
Apart from providing warehouse management systems with enhanced capabilities, state of the art technologies can help to address the problems that have plagued these systems for years. In an article in which he offers insights on how to functionally utilize warehouse space, McKnight identifies some of the problems that have hindered the optimal performance of warehouse systems. These problems include poor design of warehouses (McKnight, 1999). McKnight advises that when designing warehouses, it is important to ensure that care is exercised when designing the interior and exterior layout of the warehouse. He also highlights the need to ensure the safety of those who work in the warehouse (McKnight, 1999). McKnight does not make any explicit mention of state of the art technologies. However, the arguments that he raises in his article can be extended to gain insights into the role that these technologies can play in addressing the challenges that hamper the effectiveness of warehouse management systems. For instance, it is possible to adopt these technologies in an effort to allay any safety concerns. Safety gear that takes advantage of modern technologies can be installed in warehouses to make them safer. The operators of modern warehouses that wish to address such challenges as poor safety need to embrace state of the art technologies.
Warehouses play an important role in ensuring that products are stored and delivered when required. Essentially, the supply chain system relies heavily on warehousing. Any delays or damages that occur in the warehouse can compromise the entire supply chain system. These delays and damages can be avoided by installing devices that are based on state of the art technologies in warehouses. For instance, instead of relying on human labor to move and arrange items in a warehouse, automated forklifts can be used. This has been adopted by Toyota as part of its effort to enhance order processing (“Toyota Material Handling”, 2011). The company has introduced automated folk lifts and trucks in its UK warehouse. As a result of the folk lifts, the company is able to process orders faster and reduce costs. Basically, the technology that Toyota has adopted has shielded it from such challenges as huge backlogs that are suffered by warehousing companies that rely almost entirely on human labor. The case of Toyota makes it clear that state of the art technologies in warehouse management systems ensure that processes in the supply chain system are carried out smoothly and without any hitches. From the discussion so far, it is clear that state of the art technologies are critical to modern warehouses as they ensure that these warehouses do not compromise the smooth operation of the supply chain system.
Today, many business processes are driven by data. Most businesses base their decisions on the insights that they gain through data analysis. Modern technologies have made it easier to conduct data analysis. Modern warehouses can benefit when they implement state of the art technologies for data analysis and management (“5 Fundamental Practices”, 2014). As noted earlier, Toyota has adopted a system that allows it to tag and track items. Thanks to this system, the company is able to monitor the movement of all parts. It can be argued that the decision making process at Toyota UK has been made smoother by the sophisticated technologies. Toyota serves as an example of the importance of information gathering and data analysis. By adopting sophisticated technologies, warehouses can ensure that all decisions that are made are based on data. They will join the long and growing list of facilities and firms that are relying on data for decision making.
Many firms struggle in their efforts to ensure accountability and to tackle fraud and theft. Warehouses are among the facilities that are worst affected by poor accountability and fraud. This is especially true for warehouses that hold imports. Numerous cases of contraband being smuggled and stored in warehouses have been reported (Bowers, 2016). For instance, there have been reports of illegally acquired firearms being stored in warehouses. Drugs and animal parts such as elephant tusks have also been confiscated on numerous occasions. State of the art surveillance and monitoring technologies can be installed in warehouses to address these issues (Joossens & Raw, 2008). For instance, cameras and scanners that capture the contents of packages can be installed in warehouses. These devices will ensure that all dues for products stored in warehouses have been paid and that no contraband is stored. The owners and the operators of the warehouses will be the primary beneficiaries. Governments will also share in the benefits as they will be able to tackle illegal trades and tax evasion. Sophisticated technologies are evidently critical to modern warehouses as they are key to combating fraud and enhancing transparency.
In conclusion, the operators of warehouses have reason to rejoice as technologies continue to undergo refinement. Today, technologies have streamlined processes in warehouses. Warehouses that have adopted state of the art technologies have been rewarded with lower costs and smoother processes. Additionally, these warehouses have reported improved safety and are able to tackle such issues as fraud and poor accountability. The supply chain system has also been improved since modern technologies have minimized delays. Furthermore, thanks to modern technologies, the decisions made in warehouses are now based on insights gained through data analysis. The benefits of modern technologies are not theoretical. Such companies as Toyota serve as evidence that these benefits are real. Firms that wish to join Toyota in enjoying the benefits need to embrace state of the art technologies.
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