modern information managementtaxes have been paid on tobacco productsand drug manufacturers want tominimize the presence of counterfeitdrugs in the pharma supply chain.Compliance, however, is only one ofthe factors driving a renewed interest inMES on the part of users. Other factorsinclude:An aging workforce: For manymanufacturers, leaning out the workforcehas led to a shortage of new, youngtalent on the floor and in the plant’s ITdepartments. “The individuals supportingexisting manufacturing systems areon the back end of their careers,” saysSouthcott. “The next generation may notbe attracted to that role.”Custom code is expensive: Manymanufacturing plants run on custom systemsthat, like their workforces, will soonbe retired. It makes more sense to replacethose systems with a packaged solutionthan another custom-written program.Islands of automation: Manymanufacturers have point systems inplace for specific processes, like labelingcompliance, “but there are still alot of paper-based solutions and islandsof automation,” says Michael Gay,CPG industry manager for RockwellAutomation (www.rockwellautomation.com/rockwellsoftware/cpg).Connecting the shop floor tothe top floor: For years, manufacturingwas a black box. C-level executiveswere only aware of the plant whensomething went wrong. Today, enterpriseswant visibility into their manufacturingoperations and the ability tolink those systems into their broad supplychain and ERP systems.“We did a study in 2005 that foundthat the supply chain reported to manufacturingabout 39% of the time,” saysJacobson. “When we redid it in 2010,we found the supply chain answeringto manufacturing only 8% of thetime.” What that means is that manufacturingand logistics are much moreintertwined and have to work muchmore closely together than in the past.What’s more, information about all ofThe once-fragmented MES market is consolidating, leading to largerproviders and an out-of-the-box approach to these solutions.those processes needs to be rolled upfor executive decision making.Business strategies are changing:Running a long production batch is amuch different animal from the shorterruns and frequent product changeoversthat are part of today’s dynamic market.“MES is an enabler of those kinds ofbusiness strategies,” says Horth.And, the nature of MES projects isbeginning to change. “We’re beginningto see business sponsorship for theseprojects,” says Jacobson. “C-level executivesare deeply involved in the projectsand at the most progressive companies,they are putting together teams thatblend manufacturing personnel with ITpersonnel and the supply chain.”What’s different about MESRemember that the adoption of anytechnology is never a one-way street.MES is at a crossroads because theneeds of manufacturers are intersectingwith the fact that “MES systems finallywork as advertised,” says Southcott.And, like the WMS industry beforeit, the MES industry is moving closer toa packaged solution. “What the vendorsare trying to do is to deliver as muchout-of-the-box functionality as possible,”says Jacobson. “They are mimickingthe way mid-range enterpriseresource planning (ERP) vendors havegone to market, with industry-specificapplications and processes.”Make no mistake, however: MESsystems are still expensive. But developingan out-of-the-box approach,especially one that is tailored to specificindustry verticals, allows MESusers to leverage their investment inone plant across multiple plants. “We’reall creating libraries and capabilitiesfor the industries we call on,” saysRockwell Automation’s Gay. Once anMES user rolls out a solution in oneplant, it’s much easier and more costeffective to roll the same solution outin another plant. “We have modularizedthe approach to MES,” Gay says.The last important change in the marketmay not involve functionality; ratherit’s the nature of the vendors providingMES solutions. A once-fragmented marketmade up of small, niche players hasconsolidated. Today, a handful of verylarge companies, including Siemens,GE, SAP and Rockwell Automation, aremaking significant investments in theMES space. “When companies of thissize get into the market, it sends a messageto end users that this is a seriousspace,” says Southcott.Jacobson adds that it’s still too early inthe development to predict whether thisapproach will turn the tide for MES vendors,“but it’s interesting to watch.” M28 A p r i l 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com
SustainabilityinIntralogisticsThe world‘s leading fair for inTralogisTicsfrom 2–6 may <strong>2011</strong> in hannover• The entire world market all at one venue• Global platform for presenting the latest innovations in intralogistics• Showplace for all the industry’s latest trends and solutions• International supporting program with spotlight on BRIC countries• Highlights from intralogistics research worldwide• Specific branch-oriented solutions• 1,100 exhibitors and 58,000 visitors from 61 countriesCeMAT <strong>2011</strong>The world‘s leading fair for intralogistics.
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