MHI Solutions - Volume 4, Issue 3 - 22


"In essence, the company said, 'Based on history, we predict
that there's a good chance you're going to make a mistake on
this pick." Over the following two months, because the pickers
were notified, there were zero picking mistakes related to those
15 items. "Then they systemized that process, and now do it
dynamically and automatically on a two-week rolling basis
within the warehouse management system (WMS). They have
had tremendous accuracy improvements as a result of it. And the
pickers love it."

- John Reichert, senior director, SCE Solutions, TECSYS, Inc.

from a financial, visibility or delivery timeliness moniker, for
example-that is less sensitive to the needs of distribution.
But for those who begin to appreciate what predictive
analytics is and what it can do, the opportunities-and the
excitement-are palpable. According to the 2016 MHI Annual
Industry Report, 44 percent of respondents to this year's survey
say predictive analytics has the potential to be a disruptive or
competitive force in their industry. So far, the report states, the
adoption rate for predictive analytics in supply chains stands
at just 22 percent, but "it is expected to grow to 80 percent
over the next six to 10 years." For those seeking to stand out
from the crowd, the time is now.
Seeking creative solutions
This year at MODEX, McClary joined John Hill, director of
MHI member St. Onge Company, in presenting "Harnessing
the Power of Supply Chain Technology and Systems." They
spoke of predictive analytics then, and they weren't alone.
Another MODEX session, "The Next Big 'Smarter' Thing-
Predictive Analytics Joins Real-Time Floor Execution,"
featured John Reichert, senior director, SCE Solutions, at
MHI member TECSYS, Inc., and Dino Stamatiou, director,
Analytics and Business Intelligence, TECSYS.
TECSYS provides warehouse, distribution, transportation
and delivery management, in addition to business intelligence
and analytics software solutions and services.
Reichert admits that for some, the idea of predictive analytics can be daunting to the point of paralyzing. That's when
he takes things down to the basics with real-world examples,
times that companies have used the data they already had to
begin making predictions, and then followed through those
predictions to see if improvements could be found.
He tells the story of a TECSYS customer who wanted to
improve accuracy. This customer already had a running application that captured customer reported errors by reason, but
was not leveraging this data in daily operations.
The company began with a list of 15 items that had the most
customer-reported errors on picking over a two-month period.
Those high error-rate items were then marked with visual and
audible warnings on picking operator radio frequency (RF)
and voice tasks.
22

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Q3

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2016

"In essence, the company said, 'Based on history, we predict
that there's a good chance you're going to make a mistake on
this pick,'" Reichert said. Over the following two months,
because the pickers were notified, there were zero picking
mistakes related to those 15 items. "Then they systemized
that process, and now do it dynamically and automatically on
a two-week rolling basis within the warehouse management
system (WMS)," he said. "They have had tremendous accuracy
improvements as a result of it. And the pickers love it."
Stamatiou offered another example from a Florida-based
distribution center.
"The issue they had at the time was that they were seeing
high levels of forklift-related damage," he said. "They started
fetching data from different, disparate sources, based on various systems. They looked at environmental data within the
warehouse, and found that when those accidents were occurring, humidity levels were actually spiking." It was a surprising
discovery, because the dehumidification system had been
designed to keep levels stable.
But the company reached a little further and incorporated
readily available weather data, and found the root cause:
"When thunderstorms were rolling into the area-and in
Florida, they come in pretty fast and furious-the dehumidification system could not keep up. Condensation would
actually form on the floor and the forklifts were sliding and
causing the damage."
Aside from a good success story, it's a "perfect example of
how the emergence of the so-called Internet of Things is capturing all kinds of disparate data that, when brought together,
can really produce a model of reality." The company rolled
out a proactive solution, automatically regulating the speed
of the forklift based on humidity levels in the warehouse, as
well as instantly notifying drivers when the levels were on the
rise. That is an example of an organization reaching out and
grabbing the various data sets that were readily available to
them, deriving insight, understanding root cause, and then
deploying a solution out to the environment based on that
level of insight," he said. 
But it raises an important point about predictive analytics: It
requires a lot of creative thought-and hard work. It's not about
installing a little black box that simply spits out all the answers.



Table of Contents for the Digital Edition of MHI Solutions - Volume 4, Issue 3

CEO Update
Intelligent Robots Offer a Competitive Edge
3D Printing Will Disrupt Manufacturing as Adoption Rates Rise
Predictive Analytics
Sensors and the Industrial Internet of Things
Industry Focus: Consumer Electronics
Industry Report Released
2016 MHI Innovation Awards
The New Face of the Supply Chain?
2016 MHI Annual Conference Preview
Regional Supply Chain Education and Workforce Summits Raise Awareness of Industry, Opportunities
Economic Market Analysis
Safer Handling
Solutions Group Update
Fulfillment Update
Solutions Spotlight
Scholarship Winners: Where Are They Now?
MHI News
Calendar
Index of Advertisers
MHI Solutions - Volume 4, Issue 3 - cover1
MHI Solutions - Volume 4, Issue 3 - cover2
MHI Solutions - Volume 4, Issue 3 - 3
MHI Solutions - Volume 4, Issue 3 - 4
MHI Solutions - Volume 4, Issue 3 - 5
MHI Solutions - Volume 4, Issue 3 - 6
MHI Solutions - Volume 4, Issue 3 - CEO Update
MHI Solutions - Volume 4, Issue 3 - Intelligent Robots Offer a Competitive Edge
MHI Solutions - Volume 4, Issue 3 - 9
MHI Solutions - Volume 4, Issue 3 - 10
MHI Solutions - Volume 4, Issue 3 - 11
MHI Solutions - Volume 4, Issue 3 - 12
MHI Solutions - Volume 4, Issue 3 - 13
MHI Solutions - Volume 4, Issue 3 - 3D Printing Will Disrupt Manufacturing as Adoption Rates Rise
MHI Solutions - Volume 4, Issue 3 - 15
MHI Solutions - Volume 4, Issue 3 - 16
MHI Solutions - Volume 4, Issue 3 - 17
MHI Solutions - Volume 4, Issue 3 - 18
MHI Solutions - Volume 4, Issue 3 - 19
MHI Solutions - Volume 4, Issue 3 - Predictive Analytics
MHI Solutions - Volume 4, Issue 3 - 21
MHI Solutions - Volume 4, Issue 3 - 22
MHI Solutions - Volume 4, Issue 3 - 23
MHI Solutions - Volume 4, Issue 3 - Sensors and the Industrial Internet of Things
MHI Solutions - Volume 4, Issue 3 - 25
MHI Solutions - Volume 4, Issue 3 - 26
MHI Solutions - Volume 4, Issue 3 - 27
MHI Solutions - Volume 4, Issue 3 - 28
MHI Solutions - Volume 4, Issue 3 - 29
MHI Solutions - Volume 4, Issue 3 - Industry Focus: Consumer Electronics
MHI Solutions - Volume 4, Issue 3 - 31
MHI Solutions - Volume 4, Issue 3 - 32
MHI Solutions - Volume 4, Issue 3 - 33
MHI Solutions - Volume 4, Issue 3 - Industry Report Released
MHI Solutions - Volume 4, Issue 3 - 35
MHI Solutions - Volume 4, Issue 3 - 36
MHI Solutions - Volume 4, Issue 3 - 37
MHI Solutions - Volume 4, Issue 3 - 38
MHI Solutions - Volume 4, Issue 3 - 39
MHI Solutions - Volume 4, Issue 3 - 40
MHI Solutions - Volume 4, Issue 3 - 41
MHI Solutions - Volume 4, Issue 3 - 2016 MHI Innovation Awards
MHI Solutions - Volume 4, Issue 3 - 43
MHI Solutions - Volume 4, Issue 3 - 44
MHI Solutions - Volume 4, Issue 3 - 45
MHI Solutions - Volume 4, Issue 3 - 46
MHI Solutions - Volume 4, Issue 3 - 47
MHI Solutions - Volume 4, Issue 3 - The New Face of the Supply Chain?
MHI Solutions - Volume 4, Issue 3 - 49
MHI Solutions - Volume 4, Issue 3 - 50
MHI Solutions - Volume 4, Issue 3 - 51
MHI Solutions - Volume 4, Issue 3 - 52
MHI Solutions - Volume 4, Issue 3 - 53
MHI Solutions - Volume 4, Issue 3 - 54
MHI Solutions - Volume 4, Issue 3 - 55
MHI Solutions - Volume 4, Issue 3 - 56
MHI Solutions - Volume 4, Issue 3 - 57
MHI Solutions - Volume 4, Issue 3 - 2016 MHI Annual Conference Preview
MHI Solutions - Volume 4, Issue 3 - 59
MHI Solutions - Volume 4, Issue 3 - 60
MHI Solutions - Volume 4, Issue 3 - 61
MHI Solutions - Volume 4, Issue 3 - 62
MHI Solutions - Volume 4, Issue 3 - 63
MHI Solutions - Volume 4, Issue 3 - 64
MHI Solutions - Volume 4, Issue 3 - 65
MHI Solutions - Volume 4, Issue 3 - Regional Supply Chain Education and Workforce Summits Raise Awareness of Industry, Opportunities
MHI Solutions - Volume 4, Issue 3 - 67
MHI Solutions - Volume 4, Issue 3 - 68
MHI Solutions - Volume 4, Issue 3 - 69
MHI Solutions - Volume 4, Issue 3 - 70
MHI Solutions - Volume 4, Issue 3 - 71
MHI Solutions - Volume 4, Issue 3 - 72
MHI Solutions - Volume 4, Issue 3 - Economic Market Analysis
MHI Solutions - Volume 4, Issue 3 - 74
MHI Solutions - Volume 4, Issue 3 - Safer Handling
MHI Solutions - Volume 4, Issue 3 - 76
MHI Solutions - Volume 4, Issue 3 - 77
MHI Solutions - Volume 4, Issue 3 - Solutions Group Update
MHI Solutions - Volume 4, Issue 3 - 79
MHI Solutions - Volume 4, Issue 3 - 80
MHI Solutions - Volume 4, Issue 3 - Fulfillment Update
MHI Solutions - Volume 4, Issue 3 - 82
MHI Solutions - Volume 4, Issue 3 - 83
MHI Solutions - Volume 4, Issue 3 - 84
MHI Solutions - Volume 4, Issue 3 - Solutions Spotlight
MHI Solutions - Volume 4, Issue 3 - 86
MHI Solutions - Volume 4, Issue 3 - Scholarship Winners: Where Are They Now?
MHI Solutions - Volume 4, Issue 3 - 88
MHI Solutions - Volume 4, Issue 3 - MHI News
MHI Solutions - Volume 4, Issue 3 - 90
MHI Solutions - Volume 4, Issue 3 - 91
MHI Solutions - Volume 4, Issue 3 - 92
MHI Solutions - Volume 4, Issue 3 - 93
MHI Solutions - Volume 4, Issue 3 - 94
MHI Solutions - Volume 4, Issue 3 - 95
MHI Solutions - Volume 4, Issue 3 - 96
MHI Solutions - Volume 4, Issue 3 - Index of Advertisers
MHI Solutions - Volume 4, Issue 3 - 98
MHI Solutions - Volume 4, Issue 3 - cover3
MHI Solutions - Volume 4, Issue 3 - cover4
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