Labour issues drive trend to systemisation

More systemisation of warehouses and distribution centers is on the cards for 2015 as more and more companies realise the benefits of technology. According to Michael Badwi, director of technology integrator Supply Chain Junction, this will directly affect efficiency, allowing for a more controlled warehousing operation. “There are several reasons why systemisation is gaining ground in South Africa, but labour – its effectiveness and high cost – is a big driver of this trend,” he said. “Through systemisation companies are reducing the impact of labour on their operations. Systems allow for more control and that directly impacts the bottom line.” Badwi said introducing technology into warehouses had not been as high on the agenda of companies as it had been in other areas of business. “Many people still consider warehouses just large premises to hold stock. It is definitely still an evolutionary process and more companies are starting to realise the value and benefit of investing in good warehouse operations.” Badwi said many companies still did not see the competitive advantage of having stateof- the-art technology in their warehouses. “Those companies that have seen the advantages and have systemised are definitely reaping the benefits.” In terms of cost, Badwi said systemisation required capital outlay but was not necessarily an expensive exercise compared to the costs incurred in those warehouses with no systems due to lost sales and overinf lated inventory levels.