Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Amy Dean, vice president of operations at SC Codeworks, discusses how the software development company is enhancing warehouse and transportation logistics with advanced technology and why training workers is essential to streamlining operations.
Name: Amy Dean
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Title: Vice president of operations
Company: SC Codeworks
What is SC Codeworks?
SC Codeworks is a software development and consultancy services company focused on the warehouse and transportation industries. Our lead product is our versatile warehouse management system (WMS), coined Codeworks. Our all-in-one WMS solution was designed to meet the needs of warehouse logistics companies of all sizes and provides a fully integrated, one-stop solution that includes essential modules like yard management and inventory control—all under a single enterprise license.
Our most recent initiatives include the rollout of our enterprise version of the platform, which features a completely redesigned user interface (UI), expanded cloud computing functionality and new tools such as photo and document upload. In the coming months, we will continue to launch new modules and upgrades to the platform, including a capital asset management (CAM) tool and new predictive capabilities as we further integrate artificial intelligence (AI) and machine learning (ML) into the platform.
What industries do you primarily serve?
The primary industries we serve are consumer packaged goods (CPG), food and beverage, auto, hazard chemical and general third-party logistic companies. However, we have clients in many other fields and our system was designed to be adaptable to meet the needs of most any logistics-focused company.
Which industry do you think has the most to teach fashion about improving their supply chain logistics?
Fashion’s supply chain faces significant challenges, many of which stem from consumer demands, including fast fulfillment expectations, inventory stocking issues and high return rates—with nearly one in three fashion items reportedly being returned. To address these challenges, fashion companies need a fast and flexible supply chain, which we see drawing parallels to the auto industry.
In fashion, as well as in auto, there is an extremely large number of stock keeping units (SKUs), and they need to be available at physical hubs and eventually to retail centers—service centers or stores—relatively quickly. While only so much inventory can be stored on site, when a part or certain fashion SKU is needed, it needs to be fast. The auto industry has addressed this issue in a few ways. First, by using a spoke and hub strategy, where centralized hubs store large amounts of parts, many times across manufacturers, strategically located across major markets. This improves the throughput speed once a part is called for.
Secondly, and almost most expectedly, fashion needs to embrace data use as much as possible, as the auto supply chain industry has. While there will always be curveballs in demand, mining the available data to better understand what should be on the floor can mean the difference between a successful sales quarter or a miss. Again, this can be challenging as a smaller brand entering a larger ecosystem, but there are third-party, fashion-focused companies that can assist in improving supply chain efficiency through first- and third-party data mining.
What is the main thing brands and retailers could do (or stop doing) right now that would immediately improve logistics?
Start bringing an operations-segmentation mindset to planning and service delivery—it’s not one size fits all. Bring focus to your fast movers, high margin and top tier customers and prioritize more in management of your supply chain.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
A flexible supply chain is built to support challenges. Ways to improve flexibility include adding lines or facilities wherever possible, leveraging technology that allows for real-time changes as things come up and adding back-up partners who are ready to jump in when needed.
For instance, many operators aren’t thinking of recalls. You need to make sure that you have the technology and the processes in place to quickly identify products that have been recalled or placed on hold for whatever reason and then recommit to good products to keep things moving.
What area of logistics isn’t receiving the industry attention it deserves?
Companies are investing in technology and automation but aren’t properly training their workforce. Your technology is only as good as its human operators, even with AI, and training your workforce on proper use and holding them to account can mean the difference between success and failure.
What is your company doing to make the movement of goods more sustainable?
One way we are helping operators with sustainability is load consolidation. In fact, last year across the board, our companies saw over 30 percent improvements in load consolidation, meaning less trucks and less waste. Inside of the warehouse, the routing that our system does enables operators to use less propane or electricity by reducing travel time. We always say that less time with empty forks means more money and a saved tree.
Another way is our system helps with repack, improving circular logistics. The more operators can recoup materials, the less waste you have.
What is the one thing brands and retailers could be doing to make better use of technology to improve logistics?
Train their staff on proper use and implement policies to ensure adherence. Even with the best AI models in place, they rely on data to operate. This data comes from humans using the system, and the only way to ensure accuracy is ongoing training and oversight. Even a few incorrect data inputs can reduce a system’s effectiveness for weeks or even months. While AI may improve supply chain logistics, AI will not replace the human piece of supply chain technology management, and there must be an emphasis on managing this piece.
Are you optimistic about the state of supply chains in the next few years?
Yes, because it seems like we are getting back to where things were pre-pandemic. Stocks are normal, and it seems operators are fully back on track. This allows operators to look ahead versus just react.
