Companies Report Widespread, Costly Asset Tracking Problemsadmin
…according to a new study conducted by real-time locating system (RTLS) vendor WhereNet.
The survey, completed by 146 operations managers, engineers and IT executives, found that 84% of respondents still use manual asset tracking techniques. More significantly, 100% of respondents admitted that their data capture information was inaccurate because of human input error, or improper or missed scans. Similarly, 100% of respondents reported that the latency associated with current inventory systems resulted in incorrect location of inventory.
“Today’s operations executives and IT teams must meet corporate business objectives of reducing inventory, compressing cycle times, increasing quality and improving return on assets in industrial manufacturing and transportation and logistics environment,” said Tom Turner, senior vice president for WhereNet. This survey highlights the need and desire for companies, large and small, to use technology and implement solutions that can make their supply chains operate more efficiently.”
The study also found that 78% of companies reported operations personnel perform at least one search per day for assets, with 25% reporting more than 10 searches per day; 64% indicated that search times to locate each item take 30 minute or longer. (For more information, see sidebar.)
Respondents to the survey included companies in more than a dozen industries, with 56% coming from the automotive, aerospace and manufacturing industries. More than 25% of respondents represent companies with annual revenues greater than $1 billion.
Lost assets = lost profits
10% of respondents indicate their companies write off a half-million dollars in annual losses as a result of lost assets or inventory.
59% of respondents reported their companies spend up to $25,000 a year, in man-hours alone, searching for lost assets.
60% of respondents said that companies spend up to $50,000 annually over-provisioning inventory and equipment as part of their “standard” operational or manufacturing processes.
49% of respondents consider the lack of connectivity between their inventory/assets and the people and information systems that manage those assets as the most significant barrier to streamlining their supply chain.
Reprinted by permission Frontline Solutions, October 2001 www.frontlinetoday.com