M2M innovations invigorate warehouse management

Handbook

1EDITOR’S NOTE

2M2M TECHNOLOGY BRIDGES THE REAL-TIME GAP

3SOFTWARE OPTIONS ARE EXPANDING FOR MANUFACTURERS

4HOW TO DEPLOY NEW WMS TECHNOLOGY

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M2M Innovations Invigorate Warehouse ManagementMachine-to-machine technology has many uses outside the warehouse—from shipment tracking to remote diagnostics. But M2M can also bring split-second data visibility inside it, too.

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M2M Technol-ogy Bridges the Real-Time Gap

Software Options Are

Expanding for Manufacturers

How to Deploy New WMS

Technology

2 M2M I N N OVAT I O N S I N V I G O R AT E WA R E H O US E M A NAG E M E N T

1EDITOR’S NOTE

Making It to Real Time

In a world where 24/7 connectivity and ubiquitous Wi-Fi are the norm, ma-

chine-to-machine technology is flourishing. Manufacturers can find many uses

for M2M outside their walls—from shipment tracking to remote diagnostics—but

the technology can also bring split-second data visibility inside the warehouse.

At its core, M2M is all about machines talking to each other in real time. When

used in conjunction with sensor technologies such as radio-frequency identifica-

tion, M2M can instantly locate parts and products as they make their way from the

shop floor, through the warehouse and onto shipping containers. Knowing exactly

where an item is at any given moment is a boon to manufacturing efficiency.

In this three-part guide, we’ll examine how M2M is bridging real-time in-

formation gaps for manufacturers. Next, we’ll explore the expanding universe of

M2M software options. And finally, we’ll get an industry watcher’s tips for deploy-

ing new technology in the warehouse. n

Brenda Cole

Site Editor, SearchManufacturingERP.com

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M2M Technology Bridges the Real-Time Gap

Access to real-time supply chain information has become a must-have for

manufacturers. With the explosion of wireless networks and cloud computing,

manufacturers are looking for instant communication across the shop floor or

across the ocean. Machine-to-machine, or M2M, technology puts these real-time

intelligence capabilities into the devices that manufacturing operations depend on.

Machine-to-machine technology is a somewhat misleading phrase, according

to Joe Barkai, an analyst at Framingham, Mass., research firm IDC Manufacturing

Insights. “It really means ‘machine to back office’ or ‘machine to humans,’ where

these machines are communicating from a remote location to a centralized loca-

tion,” he said. Originally, M2M was focused mostly on remote diagnostics and

maintenance, Barkai said. Machines with M2M applications built in can send an

alert to their operators when something is wrong. A repairperson can then arrive

quickly with the right parts, reducing the need for multiple service visits.

Product restocking is another basic use case for M2M technology, Barkai said.

“If an ATM or vending machine is running out of products, you don’t have to find

this out by making regular maintenance rounds—now the machine can tell you

instantly,” he said.

2TRENDS

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Utility companies are starting to use M2M applications for their own routine

maintenance, according to Michele Pelino, an analyst at Forrester Research Inc.

in Cambridge, Mass. Sensor-enabled “smart meters”

can instantly transfer data on gas or electricity use

back to a central office, cutting down on monthly in-

person meter checks, she said.

“M2M technologies have been around a long time,

but now we’re seeing more use cases being driven

by the fact that the price points by device are going

down, and there is much more wireless connectivity

for transporting information,” Pelino explained.

Some manufacturers have transferred some of

these new, more affordable applications of M2M

to the consumer side. Barkai sees this happening

particularly in the automotive industry, where M2M is generally referred to as

“telematics.”

In-car intelligent sensors send alerts about engine trouble or even save lives

with real-time accident diagnostic programs like OnStar. Pelino points to medical

device manufacturers, many of which are giving patients the power to measure

critical functions such as heart rate, blood pressure and glucose levels and send

that information directly to their doctors.

In-car intelligent sensors send alerts about engine trou-ble or even save lives with real-time accident diagnos-tic programs like OnStar.

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MACHINE-TO-MACHINE SOFTWARE M2M’s uses aren’t limited to product maintenance; intelligent machines also in-

crease efficiency throughout the manufacturing process.

“While from the grand technology perspective, M2M is usually a one-size-

fits-all, there are some more specific applications on the manufacturing verticals

levels,” said Herb Congdon, associate vice president of the Telecommunications

Industry Association (TIA). “There are RFID [radio-frequency identification] tags

and just-in-time manufacturing [M2M uses] as well as controlling and tracking

what’s coming in and going out of the warehouse. With a lot of M2M technol-

ogy, what we’re talking about is sensors; these sensors can be tracked all the way

through the manufacturing process.”

When the various machines used during the manufacturing process can talk to

each other, businesses can make mission-critical decisions in real time, according

to Congdon. “That’s the real benefit. We’ve kind of seen some of those benefits

with [program logic controllers] but M2M is more,” he said. “It helps with the

entire process, from raw materials to outgoing products as well as transportation

and storage.”

In the early days of M2M, communication between devices was limited to

point-to-point, localized interactions, Congdon said. Now, with the availability of

new sensors and chips, companies can communicate with their machines through

the cloud. “The home office can keep track of what’s going on in their facilities

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all over the world as if they were across the street,” he said. “All the info that was

only available locally can now be accessed anywhere at any given time, and that

adds real confidence to the decision-making process.”

Remote monitoring of manufacturing machinery may become more necessary

as workforce demographics change, Barkai said. “With an aging workforce, all the

people with experience [maintaining machinery] are leaving,” he said. “This means

there will be fewer people on the floor with the needed expertise. Here, M2M helps

if there’s a failure online with a machine, because the expert can connect remotely

to help fix it.”

Pelino sees M2M applications being used on the transportation and logistics

side of the manufacturing process, with the aid of RFID and Global Positioning

System. “Suppliers and manufacturers can now track pallets of stock to know

what is coming in and the exact pieces and quantities to be delivered,” she said.

Real-time visibility in shipping also reduces lost containers and costly warehouse

overstocking.

Barkai noted that M2M can also be used in transportation to track the status

of temperature-sensitive shipments of food, beverages or even chemicals. Instead

of discovering that a container has not been maintained at the proper temperature

after the shipment has already been spoiled, M2M-enabled containers can give

constant temperature updates to the home office and instantly alert truck drivers

if something goes wrong.

http://searchmanufacturingerp.techtarget.com/news/1360113/RFID-and-GPS-advances-ripple-through-the-supply-chain

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One of the biggest concerns about using M2M across manufacturing is security,

according to Barkai. Because most industrial networks were designed when secu-

rity concerns were not high, companies with machines connected remotely today

are more exposed to breaches—some of which could be serious. Barkai cited the

Stuxnet virus that attacked Iranian nuclear facilities in 2010 as a recent example.

TRENDS TO WATCHAs wireless networks and cloud computing’s capabilities continue to expand, so

will M2M’s possibilities, Congdon said. “Much of TIA’s efforts are around devel-

oping M2M technologies through increasing the breadth of the service that M2M

companies can use,” he said. “That will get a lot of attention in America and glob-

ally. There’s a tremendous demand for spectrum to be cut loose by the federal

government to give carriers access to more bandwidth.”

Congdon also sees some struggles for machine-to-machine providers to ac-

commodate the wide variety of devices that customers want added to their net-

works. “When you start talking about the M2M space, you’ve got hundreds or

even thousands of customers with specific needs,” he said. “You can’t step from

a dozen or so channels to a thousand channels without changing your approach.

I think third-party services might start offering certification to make customer

devices work on the desired networks.”

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In coming years, M2M will become common throughout manufacturing, Pelino

said. “Certain industries are further along than others, particularly automotive.

You’re going to see a broader deployment of health care with 4G as well as more

uses in consumer and utilities companies,” she said. “Nobody wants to fall behind

with technology, so it won’t just be high-end manufacturers using M2M.”

Pelino cautioned that this broader M2M adoption won’t happen overnight.

“You’re changing not just how an object is traced, but how customer service, repair

and replacement are done,” she said.

Barkai predicts that with the growth of wireless networks and devices ques-

tions about M2M, usage in manufacturing will shift from “How can these devices

be connected?” to “How can these devices be connected while still remaining

private and secure?”

“We need the standards in place for these devices,” he said. “Traditionally, the

biggest hurdle was the connection between devices and carriers. Pretty soon those

questions will become moot. M2M will become easier, but the content and value

will still be a challenge.” —Brenda Cole

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Software Options Are Expanding for Manufacturers

The growth of machine-to-machine software options was once hindered by

limited Wi-Fi and mobile connectivity. But now with wireless communication be-

ing the norm and networks more expansive than ever, M2M vendors are offering

a wide range of services that could be a boon for many manufacturers.

“You can accomplish a lot by adding intelligence to your machines,” said Nick

Jones, analyst at Gartner Inc. in Stamford, Conn. “If you look at the general prin-

ciples of M2M, you can see many business models emerging from this technology.

Those models include how to reduce the cost of [machinery] maintenance as well

as monitoring expensive assets.”

Companies can monitor how much a machine is being used and schedule main-

tenance based on that, he said. Even better, M2M allows machines to broadcast a dis-

tress signal when an error occurs, so a repairperson can be sent out as soon as possible.

M2M IN USEWhile M2M applications have traditionally been used to monitor machines out-

side a company’s facilities—vending machines and elevators are well-established

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examples—the technology is finding new uses on the shop floor and in the ware-

house. Jones pointed out that some manufacturers—namely, those in the automotive

industry and other industries where products are assembled in multiple locations—

are using M2M software such as radio-frequency identification (RFID) tags to track

the progress of individual units as they travel through the assembly process.

Jim Wert, general manager of the deviceWISE platform at ILS Technology LLC,

has seen excitement grow around shop-floor M2M during the past few years.

The Boca Raton, Fla., M2M vendor specializes in remote monitoring services for

manufacturers and machine maker original equipment manufacturers (OEMs).

“Manufacturers can attach the deviceWISE gateway to a machine and allow

that machine to communicate back to them,” Wert said. “Data is sent through a

secure service using remote apps and our hubs in New York, Taipei and London.”

One manufacturing sector Wert has seen embrace M2M software is energy and

utilities. Oil and gas, wastewater and municipal utilities all have to manage a wide

array of remote assets. More companies are using M2M devices to send out status

and usage info from meters to operations centers, he explained. Demand response

signals can broadcast information from remote stations to the central hub of a util-

ity company, cutting down on the need for in-person meter and equipment checks.

“[With M2M] there is the ability to monitor the flow of gas and oil to do main-

tenance tasks like shutting on and off valves. We’ve even done this with a milk

pipeline in India,” Wert said.

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1 1 M2M I N N OVAT I O N S I N V I G O R AT E WA R E H O US E M A NAG E M E N T

3PURCHASING

WIDER CELL NETWORKSThe growth of wireless cellular networks has meant the growth of M2M capabili-

ties; in fact, it’s not uncommon for M2M vendors to form partnerships with cell

carriers to better meet customer demands. One example is Raco Wireless, an M2M

provider in Cincinnati. The company has a long-term

commitment with T-Mobile to carry M2M applica-

tions over a 2G network, according to John Horn,

president of Raco.

ILS has also formed partnerships with major wire-

less providers, including AT&T, Sprint, Verizon and

Motofone, Wert said. By accessing M2M through

wireless and Software as a Service, manufacturers

can avoid hefty, up-front fees and server fees, instead

paying only a monthly bill, Wert said.

By partnering with a wireless company, M2M vendors can also ensure that the

connectivity that is essential to their applications will always be available.

“It takes some effort to get M2M solutions into the enterprise, and nobody

wants to have to turn it off just because their provider decides to turn off the 2G,”

Horn said. “It used to take months to get customers onboard with M2M,” but

faster wireless networks have now made it possible to implement M2M software

in a day, he said.

It’s not uncommon for M2M vendors to form partner-ships with cell car-riers to better meet customer demands.

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3PURCHASING

The new simplicity of setting up M2M on a wireless network has made the

technology available to manufacturers of all sizes.

“It’s just as easy for us to support a company with 1,000 M2M devices as it

is for us to support a company with a million M2M devices,” Horn said. “You see

very rapid returns on investment through greater efficiencies and product sales.”

KEEPING IT TOGETHERExpanded wireless networks have also expanded M2M’s uses past manufacturers

and OEMs to customers and shippers. M2M monitoring software installed in au-

tomobiles, for example, has given birth to “pay as you drive” (PAYD) insurance as

well as “buy here, pay here” (BHPH) car credit, Horn said. Car dealerships can use

M2M devices to remotely disable a vehicle if its owner fails to make payments,

he said.

Shipping and logistics companies are taking advantage of M2M to improve the

process of shipment tracking, Horn said. He points to UPS, which has long used

RFID and Global Positioning System to track packages, and remote monitoring

and freight intelligence company OnAsset Intelligence, which has been approved

by the U.S. Federal Aviation Administration to keep live devices in the bellies of

airplanes.

“Companies now can track shipments live and in real time,” Horn said.

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SOFTWARE CHALLENGESWhile more manufacturers are deploying M2M applications than ever, there are

still some roadblocks to adoption, Jones said.

“Part of the challenge of the M2M market is it is amazingly complicated. Some-

one has to integrate your wireless and hardware, manage subscriptions, send data

to cloud service providers and back to manufacturers. Most IT staff doesn’t know

how to do this all themselves,” he said. “Some M2M vendors are trying to make it

easier to put it all together.”

Wert predicts that, despite these challenges, M2M usage will continue to grow

in manufacturing. “It’s inevitable. We are seeing the integration of M2M technol-

ogy at every layer in the value chain, from software makers to PLC [programmable

logic controller] makers,” he said. “Radically new M2M architectures will come into

play as more manufacturers move into the cloud.”

Jones agreed that M2M software has a bright future. “Machines are still the

minority versus people, but I think in the future the number of cellular machines

will outnumber cellular people,” he said. “The costs are falling. The opportunities

are there. The challenge [of M2M] is the imagination, in thinking of clever things

to do with it.” —Brenda Cole

3PURCHASING

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4IMPLEMENTATION

How to Deploy New WMS Technology

The warehouse management system market has changed rapidly in recent

years and has incorporated many new technologies, features and functions. So

how can the changes benefit your organization, and what’s best way to deploy the

new technology?

Warehouse operators now have many more choices of WMS applications. The

WMS software market has grown to include several new types of supply chain

execution (SCE) software. It has evolved to include functions such as operation

management, inventory tracking, resourcing, replenishment, forecasting, RFID

and automation for lift trucks, conveyors and robotics.

EVER-EXPANDING OPTIONS Back when there were fewer WMS vendors, functionality was limited, but newer

systems have very deep functionality. New WMS technology vendors have in-

troduced systems that cover areas that were once not supported by warehouse

management systems. More vendors has resulted in multiple players and now

the deployment of cloud models and managed services. When selecting a WMS

application, organizations must be aware of certain options that cause confusion

http://searchmanufacturingerp.techtarget.com/news/1365934/Supply-chain-globalization-leads-to-boom-in-demand-for-SCM-software

http://searchmanufacturingerp.techtarget.com/news/1365934/Supply-chain-globalization-leads-to-boom-in-demand-for-SCM-software

http://searchmanufacturingerp.techtarget.com/news/2240160162/WMS-software-market-experiencing-growth-spurt-analyst-says

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4IMPLEMENTATION

during WMS deployment, including the depth of functionality as well as aligning

system and organizational priorities.

Organizations should examine the depth of standard functions they require—

for example, bin setup, replenishment and forecasting and Web enablement—nar-

row down vendors that meet approximately 70% of corporate requirements and

further whittle down options to create a short list.

EXAMINE AGILITY NEEDED Once an organization determines the depth of functionality it needs, it should

use a phased approach to decide the required agility and the right WMS applica-

tion to use. Organizations should identify their most pressing business issues

and install modules that address those first in the

WMS application.

The amount of functionality deployed is di-

rectly related to the amount of time the first phase

will take. Once the required modules have been de-

ployed and stabilized and employees are comfort-

able with the application, then the second phase of

the implementation begins.

Organizations should estimate for variances in WMS implementation

Organizations should estimate for variances in WMS implementa-tion time tables.

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4IMPLEMENTATION

timetables. If an organization has chosen additional requirements, however, it is

best to overestimate the time required, as integrations and automation usually

take longer than expected to integrate with the base system.

Testing interfaces and data exchange should be checked often from end to end

to ensure data and transactional integrity. Once this is

done, test the entire workflow process, including the

systems, data, agility, automation and exceptions.

Organizations can identify their needs along with

additional functionality and create a WMS deployment

budget. Keep in mind that the additional functionality

can add to the budget quickly. WMS applications have

matured and are now often offered as on-premises and

cloud options.

WMS can also be disguised as supply chain ex-

ecution software with low-level functionality. So be

prepared to closely assess the differences in inventory management software, as

there is overlapping functionality and all the features of the WMS may not needed.

Extensive testing and a phased approach will allow the organization to succeed in

its WMS deployment.

In summary, when deploying the new generation of WMS applications, re-

member the following:

Testing interfaces and data exchange should be checked often from end to end to ensure data and transac tional integrity.

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■n Determine organizational needs.■n Create a short list and select a system. ■n Implement using a phased approach. ■n Stabilize and make sure staff is comfortable with the system before going to

phase two. ■n Implement the second phase with additional modules. ■n Retest from end to end including interfaces, exceptions, automations and work-

flows to ensure all systems work together. —Dylan Persaud

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ABOUTTHE

AUTHORS BRENDA COLE is site editor of Search ManfacturingERP.com. She works with the editorial team and contributors to produce articles, guides, newsletters, tips and pod-casts. She is a graduate of Northeastern University, where she majored in journal-ism with minors in English and sociology. Email her at [email protected].

DYLAN PERSAUD is managing director for Eval-Source, a software consultancy in Toronto. Positions he has held include business systems analyst, implementation lead, project and product manager, enter-prise architect, configuration specialist, market analyst and manager of research.

M2M Innovations Invigorate Warehouse Man-agement is a SearchManufacturingERP.com

e-publication.

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