In today’s manufacturing landscape, concerns over skills, expertise, and even just the number of workers available have all impacted how organizations operate. According to Alex Ivkovic, the chief information officer of eco-friendly spouted-pouch manufacturer Cheer Pack, “Labor shortages have been a pertinent issue for Cheer Pack even before the pandemic and recent skills shortage. Alongside many other manufacturers, we looked to alternative methods to fill the human void.”
This led to the introduction of industrial robotics—machines adept in inspecting, assembling, and packaging products within a factory or warehouse, which can help free up workers for other areas of operations. A recent PwC report found that over a third of U.S. manufacturing organizations plan to prioritize robotics and warehouse automation over the next two years.
At Cheer Pack, the robots are not large and super-intelligent humanoids. Instead, the company designed a robotics strategy to introduce a team of six highly efficient and self-charging robots to move critical materials around in its warehouse operations—at ground level. These floor-level robots take instruction from the Cheer Pack Enterprise Resource Planning (ERP) system to shuffle around the warehouse and ensure critical materials are available where and when required on the manufacturing line.
They might be small, but they deliver—the company has unlocked $1.5 million in annual savings thanks to its ERP and robotics integration.
Ultimately, Robotic Process Automation (RPA) is about mitigating latency from the manufacturing process, whether it be guaranteeing the right parts or materials are available at the right time or assigning tasks to best unlock the skills and expertise of operators. When combined, all these elements will help organizations exceed consumer expectations and deliver on critical moments of service.
The use of robotics in manufacturing is not an entirely new phenomenon—take robotic welding commonly used in the automotive industry, or material handling applications. However, for many manufacturers, automated robots will be a new concept, and misconceptions surrounding them have often been a deterrent.
Robots are renowned for use in real-time operation on the manufacturing line. ERP systems, on the other hand, take a backseat approach, working behind the scenes on distributing and scheduling robots.ERP’s heritage is process orchestration, and, although critical for high-scale business operations, it can be enhanced by robotics and vice versa. RPA is already fulfilling a similar role, with the automation of intelligent business workflows—while robots are responsible for automating intelligent actions.
Both must be orchestrated to work together to achieve the desired result, for example, entering the correct product number, order number, or materials required.
Prior to the integration of robotics, labor had been a significant challenge for Cheer Pack—and recent economic events have exacerbated existing staffing issues. The story is no different for many other industries around the world, and now the market has propelled into a candidate-driven market. Research from the U.S. Bureau of Labor Statistics has shown that as of March 2022, the number of job openings in the U.S. was at 11.5 million—so, it is no surprise that manufacturing organizations are in search of technology that can fill gaps in human labor and keep pace with growing market pressures.
“Despite already employing IFS ERP systems, Cheer Pack recognized that there was potential to add more value to its robotic strategy to carry out warehouse procedures. “After coming across the IFS robotics solution at an event a few years ago, our decision was solidified to use IFS as part of our robotics strategy,” Ivkovic explained. “Integrating six robots with Cheer Pack’s existing IFS ERP solution took approximately two months, during which a few challenges over Wi-Fi connectivity and aisle widths became evident. As a result, Cheer Pack upgraded its existing Wi-Fi system, particularly at low-height levels, and adjusted aisle widths to enable the safe maneuvering of vehicles, Ivkovic added.
For many years, people have believed in the ethos that robots will replace human activity and be responsible for many workers losing their jobs. Cheer Pack is a prime example of how this is not the case. Instead, robots work alongside humans and help with monotonous and repetitive tasks to streamline operations. “Since implementing IFS robots a few years ago, Cheer Pack has been able to redistribute staff into other areas of the business and help find more fulfilling jobs for them to complete. In fact, not one staff member at Cheer Pack has lost their job because of robotic installation,” Ivkovic explained.
The benefits are clear to see. Robotics can drive efficiencies while reducing costs, proven by Cheer Pack realizing savings of $1.5 million per year. The robots require zero human entry or interaction, meaning shop orders are sent directly to the ERP system, leaving no room for human mistakes. This in turn will drive compliance, processing times, and the overall customer experience. Unlike humans, robots can work around the clock without getting tired, automatically reducing the risk of error. In fact, Cheer Pack’s robots can even take themselves back to a charging bay as needed, with others ready to operate in their place.
Robotics is already changing the way manufacturers operate in myriad ways—and for the better. But as technology evolves, so will robotics and inevitably will become a “must have” for manufacturing organizations looking to keep up with staff shortages, customer expectations, and the competition.
Similar to the Internet of Things, the next stage for robotics will encompass artificial intelligence (AI) where predictive analytics can help improve the flow of robotic operations and give manufacturers clearer visibility.
As more organizations look to robotics as part of their future operations, forward-thinking companies increasingly will pair them with ERP systems—and reap the extended benefits of doing so.
From alleviated costs to a reduction in human labor issues, ERP orchestration will help businesses scale up benefits depending on their respective industries and use cases.
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