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| RAIL LIVE
Digitalising the rail supply chain Chris Billinge, Business Development Director of supply chain specialist TFC, explains the capabilities of digital inventory management technology in the rail industry level of service while spending less, despite high passenger numbers and bottlenecks with infrastructure. These has been a great deal of expenditure on the UK’s rail network, with high-profile projects like CrossRail and HS2 taking shape. To keep costs down, businesses at all stages of the rail supply chain need to find ways to improve efficiency, productivity and profitability to allow operators to hit their contractual targets. The pressure of high demand coupled with barriers to the global supply chain have pushed inventory management to the forefront of rail industry professionals’ minds – without adequate inventory, the supply chain cannot run efficiently, or even at all. Stock control is a critical component of supply chain management and when inventory is managed well, the flow of products throughout the supply chain is smooth. But it's not as simple as it sounds.
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he term ‘Automation’ was coined in 1946, when Ford engineer Del Harder named the department that was tasked with research and experimentation. The department later went on to replace assembly-line workers with machines. He took the noun ‘Automation’ meaning selfoperating mechanism, and turned it into a verb ‘to automate’. Today, there is a growing awareness that automation can greatly improve productivity and increase supply chain transparency across all industries, including rail. However, the technology selected for inventory management determines the level of visibility you have across a facility. The aftereffects of Covid-19 created an imbalance between the supply and demand of goods, adding pressure to supply chains. Events like the conflict in Ukraine and shipping containers stuck in traffic at ports have exacerbated the issue, impacting the supply of critical materials and components across a variety of industries. This comes at a time when the UK’s rail operators are expected to deliver a better Rail Professional
The journey to digital Since the late 20th century, inventory management has been partly digital. Early examples of inventory management involved sending telegraphs to factories and mines when stock began to run low. The 1990s saw a significant acceleration in technology production as part of a logistics boom driven by the introduction of the now-ubiquitous Enterprise Resource Planning (ERP) system. Fast-forward and manufacturers everywhere are turning to cloud-based warehouse management systems to keep their inventories stacked. All areas of the rail supply chain are ripe for digitalisation – from production line to railway line. Monitor and control However, many organisations still have limited visibility of indirect material usage, often due to untracked storage locations or areas of the business with limited control over use. Without an audit trail, products can be lost, forgotten and wasted. Systems that rely on manual inputs are at high risk of human error and cannot feasibly be updated in real-time. This makes it harder to track
each individual item and can result in false stock readings. Limited visibility increases the likelihood of leakage, excessive spend and user error going unnoticed, causing delays in replenishment. For example, a personal protective equipment (PPE) supply runs out early after an employee that is required to use one pair of gloves per day regularly takes two. Without an up-to-date record, it is difficult to understand why more stock is needed or identify where to train the workforce to improve health and safety understanding across the business. Removing the noise A popular way of reducing the headaches associated with supply chain management is vendor managed inventory (VMI). In this situation, a third-party provider takes responsibility for sourcing the components, as well as managing the supply and flow of parts. The VMI partner ensures that parts, fixings, consumables, material and other products are delivered to the right place at the right time, providing timely stock replenishment in-line with a predefined delivery schedule. As a result, the customer never finds themselves in a position where their manufacturing comes to a halt because a particular C-Class product is not available. This is particularly attractive in the current climate, where sourcing stock can be challenging and businesses are facing long lead times. VMI helps manufacturers reduce operational costs by ensuring parts are only purchased when needed, which reduces delivery costs, frees up warehouse space and improves internal efficiency. In addition, the customer doesn't have the overheads associated with warehousing stock and, because they aren’t being invoiced for that stock until they are ready to use it, VMI frees up working capital. VMI solves many traditional inventory management bottlenecks, offering a customisable service that resolves unique challenges for businesses. However, it is primarily a manual service provided by the VMI partner’s employees, who will attend
