Control
For businesses trying to maintain control, 2001 has
certainly been a challenge. Companies have been tossed about by factors no
piece of hardware or software can direct. The most obvious and difficult
factor, of course, is that of human behavior —whether it’s working
with cautious customers or scheming fanatics.
Last year’s problems seem fairly simple by comparison.
A year ago, for example, energy shortages due to deregulation and poor
legislative planning were an issue. Now, threats to the power grid involve
cyberterrorism through the Internet, which should concern everyone. The dot-com
meltdown initially was viewed more as a failed business experiment. But its
repercussions have put quite a crimp in the progress of many supply chains
— a tool business needs to cope with material supply issues.
Now more than ever we need the best possible controls,
software and systems vendors can develop. Are controls and systems vendors up
to the new challenges? Many of you may answer in the affirmative, but a bit cautiously.
This year’s new features and capabilities showed that vendors knew how to
jump on a bandwagon. The focus on ease of use was long overdue. And the quality
of software and communication has only recently become a large issue.
But businesses have been living with a record market
expansion and good times. It‘s been easy to take a lot for granted.
Now, there are new issues to handle.
Material handling managers must ask some tough questions,
and you will be looking to controls and software programs to provide many of
the answers. For example, do you increase inventory — just in case of
additional catastrophic events? What’s the optimum level of inventory to
have on hand for such a possibility? And how will that affect your budgets?
How much should or must you spend to provide security for
material handling systems, keeping in mind that this spent money won’t
contribute to profitability? Where’s the most bang for your buck?
What can go wrong with delivery, with shipments and with
resources? Who can provide back-up at a moment’s notice and what
relationships should you establish to ensure continuous supply?
Control is no longer as easily guaranteed. The new world is
forcing us to deal with uncertainty, because we can’t eliminate it. This
is where managing rises to new levels.
These changes, though, are really opportunities. With each
crisis, progress emerges, giving us greater control over that which we had
little control.
You’ve already wrung out many inefficiencies through
the use of controls and systems. The new challenges offer an opportunity to
find and eliminate even more. For example, software vendors are already at work
developing new algorithms to find the right amount of inventory to hold, even
in just-in-case scenarios. Overall, you can expect new features that deal with
today’s new realities, enabling you to deal with and take advantage of
uncertainty rather than just eliminate it. And this can open new opportunities
for growth.
Leslie Langnau
senior technical editor
llangnau@penton.com
