In the last two decades, smart companies have identified the warehouse operation as a profit center, not a cost center. This is far from universal, but it inches toward that every day. No longer are warehouse managers considered box-hustlers – at least not in smart companies. Many are utilizing varying levels of automation. WMS is standard for larger operations and is making its way even to single-building, midsize and smaller ones.

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Any operation with dock doors faces an uphill challenge when it comes to preserving the climate inside. In particular, air-conditioned and heated facilities must face the reality of losing large volumes of treated air when trailers must be loaded or unloaded. Managers will be asked to scrutinize every expense, and the loss of climate controlled air can be a significant expense.

So how can you minimize air and energy loss?

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Retail distribution facilities have multiple options for shipping product to store locations. They can send full pallets which must be unwrapped, unloaded, and stocked at the store location. They can send packed carts that can easily be rolled onto store floors and stocked at the point of sale. What method works best?

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We are often asked who should “run point” when a client determines it is time to upgrade an existing facility or consider a new location to meet their supply chain requirements.  How might they move forward with professionals who will provide a solution without a product bias, or a predetermined template.
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Finding qualified candidates for warehouse and production work isn’t easy

This is particularly true with supervisors who understand how kitting, ticketing, and storage operations. You want people who know the work, and who can supervise and motivate your employees. Qualified candidates are often the kind of people who aren’t online perusing jobs. They aren’t going to temp agencies. It’s a unique and difficult situation for warehousing operations. Quite often, they must be bilingual to supervise an increasingly Spanish-speaking workforce. Read the rest of this entry »

In a pick-to-tote operation, you have the advantage of a dedicated packing function. Since totes can be “one size (or a range of them) fits all”, your pickers can easily pick and organize totes as they navigate the system, either on conveyor or in carts. They aren’t thinking of anything but getting the pick right. Trained packers at the end of the line “cartonize” the orders, often using state of the art packing stations and consolidated equipment & materials. This means that you’ll have at least two employees (the picker(s) and the packer) touching each order, and that the packing group will need more square footage.  What if you decided to pick directly to cartons, eliminating the totes and reducing or eliminating the packing group?

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When it comes to storing controlled substances, in particular prescription drugs, the warehouse and bulk storage aspects are important for pharmaceutical, hospital central supply warehouses, or retail outlets. This is an area where many people who should not have access to medication may find easier opportunities for pilferage. The FDA offers some guidelines on how to operate securely, and within regulations. State licensing laws will typically reflect the minimum Federal requirements, but may exceed those, when it comes to the storage and handling of prescription drugs.

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In the not-too-distant past, most companies that weren’t running immense distribution operations, who didn’t have multiple facilities, who didn’t run 24-hour shifts, didn’t even consider automation. Too expensive, they’d say. Too much risk. Too little upside if things go wrong.  All valid in context, if it was 1998. But the reality is this: While most costs—personnel, land, energy— have increased, automation costs have remained steady or declined across the board. The reality today is that the four guys stacking pallets at the end of a line, even for a single shift, even at low wages, are more expensive than a well configured palletizing system.

Those costs aren’t going to do anything but escalate, either. Listed are ten ways automation has become more relevant, even to mid-size operations:

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A federal tax credit that could allow forklift users to recoup 50 cents of every gallon of propane purchased runs out August 1, 2011. If you run forklifts on propane, it’s nearly a no-brainer that your company should apply for this credit. To get in, you must have submitted your paperwork by the first of August. The credit is part of the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010.  Propane is part of the alternative fuels classification, which also includes natural gas, bio-diesel, and ethanol.

After the deadline, the tax credit reverts to 30%. As always, see your tax professionals before undertaking any decisions based on this information.

It’s important to control costs in your operation. What are some warehousing cost-cutting methods you can employ that don’t require extensive investment or re-tooling? Most of the costs of warehousing operations fall into the following categories:

• People
• Real Estate, Utilities & other Fixed Costs
• Inventory
• Technology

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