There’s money to be made through smart supply chain strategies like procurement optimization, material aggregation, and strategic sourcing. During the past 30 years, total global material consumption has increased by 80% and is projected to reach 180 billion tons of different materials by 2050.
“We’re engaged with industries using predictive data,” said Conrad Woerner, BinMaster Supply Chain Manager. “If a company can access its bulk material needs and realize just 1 or 2% waste reduction, or create an ordering rhythm to purchase at a lower price point, it could create millions of dollars return on investment.”
What is bulk density? In simple terms, it’s mass per unit volume of powder, liquid, granules--any material-- in a bulk state. When handling solids or powders, a bulk material’s weight is usually stated as lb./ft3 or g/cm3. Veteran processors often have their material weights memorized. While the graphics and easy-to-understand reports on BinCloud seem simple, bulk inventory information results from numerous calculations like vessel size, headspace, and the material's density.
Many feed mills, grain storage facilities, and pet food plants are big in size and small on staff. Making bin inventory management available anywhere anytime enables people to be more efficient in their jobs. Today, a simple log into a website using an app or Software as a Service program puts real-time data in front of people who need it to make timely decisions. Improvements in processing efficiency, ordering, and delivery schedules, eliminating material shortages, and reducing carrying costs are just a few of the benefits of monitoring bin levels while on-site or off-premises. Automated alerts via text or email allow for proactive actions that can add to a mill’s bottom line.
Before COVID and the supply chain crisis, industries relied on savvy just-in-time ordering to minimize carrying costs like warehousing, tied up capital, product spoilage, and waste. According to Investopedia, such carrying costs represent up to 30% of total material value. “We’re navigating the same supply chain waves as our customers,” said Scott Hudson, Executive VP Sales & Marketing, BinMaster. “We’re still hearing from people who can’t get their materials delivered on a consistent schedule, so they’re really using BinMaster for planning orders. They just can’t afford to shut down production because of a bad or outdated measurement.”
As organizations polish Industry 4.0 tools and processes, a new focus has emerged to define ways to benefit employees, sustainability, fairness, and human interactions. Industry 5.0, in some ways, benefits from 4.0 achievements automation and process improvements. Industry 5.0 points to sustainable, human-centric goals and asks, “are we supporting future societal values?”