
Ben (not his real name) was the warehouse-in-charge person at a printing press company. His job, as the title suggests, was to receive, store, and issue materials and products going to and coming from the printing press’s production lines.
Ben tracked the inventories of items via his Daily Warehouse Status Report (DWSR). It essentially was a sheet which showed the beginning inventories, quantities of items received, quantities of items issued, and ending inventories.
And he did it all by hand. No computers. He did most of his counting and computing with an old calculator.
The company’s information technology (IT) managers tried to replace Ben’s DWSR with a desktop computer networked to the company’s accounting system. They told Ben that the new system would be real-time, that is, company stakeholders could immediately update themselves on inventory balances as soon as Ben keyed in transactions on the computer.
IT managers also installed radio-frequency identification (RFID) tags on items so that inbound and outbound items would automatically be recorded into the integrated inventory information system.
Sales, production, and accounting staff, however, still called Ben to ask about inventories. Ben’s figures on his DWSR worksheet remained the go-to reference for the company’s departments’ inquiries on inventories.
Field sales would confirm product availabilities from Ben. Production supervisors would rely on Ben’s inventory records of ink, paper, & packaging materials prior to finalising their printing machines’ schedules. Accountants would double-check production & purchasing reports with Ben’s DWSR.
The printing press IT managers could only scratch their heads. Why did staff trust Ben’s DWSR more than they did the computer system?
Investigation from a 3rd party consultant revealed some possible reasons:
- IT and management assigned a staff employee other than Ben to record & check transactions on the computer while Ben continued to use his trusty DWSR. The consultant discovered that Ben’s DWSR was updated as soon as items were received or issued; the staff employee didn’t update transactions as fast as Ben did.
- The staff employee had difficulties keeping up with transactions as RFID scanning of items often took longer versus Ben’s manual counting & confirmation of production receipts & delivery dispatches. In many instances, the warehouse staff person had to rescan items because of difficulties in reading the RFID tags.
- The staff employee also encountered items that had erroneous item codes. The staff employee was busy half the time looking for the right item codes to record into the computer. Ben recorded items as per their descriptions and via his long years’ familiarity with the printing press’s products & materials. If he was receiving new materials or products he didn’t recognise, he’d go and ask the printing press’s marketing or R&D departments to identify them.
- The computer system also wasn’t caught up with what materials or products were allocated respectively for the printing press’s production lines or customers. Printing press operators would compete for materials like paper & ink especially if there were rush jobs. Ben would avoid allocating all key materials to one production line or available product to one customer; instead, he called department heads for guidance on how much to allocate to who or where. Meanwhile, the computer system’s staff employee was clueless on how to allocate.
The IT department didn’t immediately accept the consultant’s findings as they went through a stage of denial that an old-fashioned manual DWRS handled by a not-so-computer-literate senior employee could upstage a state-of-the-art integrated information system.
The printing press company continued to rely on Ben and his DWSR despite the grumblings from the company’s IT department or anyone else for that matter.
What could be the lessons managers could learn from this almost real-life story?
The following are some candidates:
- Define the problem before selecting, purchasing, & installing a system as a solution.
- Clarify thoroughly the success criteria for whatever system you aim to install.
- Examine a system’s present-state to not only identify deficiencies but also understand underlying benefits you may not want to sacrifice.
New technology systems don’t always beat old-fashioned processes.








