Alien versus Predator
August 5th 2009 The warehouse can become an alien if you don't understand how to look after it, says Savoye's new business development manager, Martin Elliott. Then it becomes a predator, mercilessly devouring profits. He believes the industry needs better tools to plan for changing markets and requirements, and Savoye is working on them. Brendan Coyne reports
Martin Elliott understands both the big and smaller picture. Originally a Dexion technical engineer, he moved into automated handling systems and conveyors, became a consultant, then operated Hewlett Packard's EMEA supply chain before returning to the storage industry and being recruited earlier this year by Savoye. His mission: to start industry dialogue, deliver the solution to rapidly changing demands, generate new business, and eventually see Savoye replicate its homeland status in the UK.
Three months into the job, what has Elliott learned? Primarily, that it's hard for customers to guage end-to-end system operational costs. "This is the customer challenge: understanding their operation, and how to sweat it, rather than just trying to take people out," he says. "It's a bit like a rose; at some point you have to prune it back or it won't flower next year. Likewise businesses are currently cutting back so that they are equipped to move forward when the climate improves. The question is how to go about it. Are they willing to pay fees to consultants if they already work with a solutions provider and integrator?" Naturally, Elliott thinks there is a better way for customers to spend their money: give it to Savoye.
"Savoye has 600 projects under its belt. We have a wealth of knowledge to share with customers. What we need to do is work more closely with them, to sit down together annually and review how their system is performing – where it is working, how it is performing in terms of return on investment, and whether anything needs to be changed."
Better planning tools
In many cases changes will be required, reckons Elliott, because business requirements change so rapidly. He believes industry needs to work together on better planning tools. Otherwise, the warehouse rapidly becomes an alien. "How do you actually plan for a major investment that is intended to last for decades? How do you determine what equipment to put into it?" But isn't that what supply chain tools are supposed to do? Elliot isn't convinced of the effectiveness of existing tools.
"They are hitting it at 30,000 feet – not just focusing on one piece of the action, which is my alien, the warehouse. What if on the shopfloor I have 30 people's workload and only 20 workers have turned up? What do I do about it? And how do I plan for future scenarios?" He says after setting up a recent roadshow, attended by 70 tier two and three companies, everyone, to a man, was interested in solving the planning problems they all face.
So how do you come up with a solution to relative unknowns? That, says Elliott, is the bit he's working on.
"It's early days: I can see the problem, I can see the solution, but have we got internally what is required to facilitate it? We have within our warehouse management system a number of recently developed tools that are starting to be implemented into contracts in Europe. I'm now looking at those in more detail to see if we can use those from a UK perspective. If not, is there something on the market that can be adapted? There is an opportunity, I just have to find something to fit it."
An all encompassing planning tool requires input from across industry if it is to be truly effective. Which is part of the reason Savoye is setting up more usergroup roadshows, the first of which will take place in September (and from which HSS will report). All logistics systems users are welcome – and Elliott believes all will benefit from their pooled experience. Not least, the aliens. More articles from Savoye SA: | 
