One of America’s groundbreaking marketers, John Wanamaker, once famously said “half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Those who run warehouses, factories and other industrial facilities are hopefully not quite as in the dark about our expenses as Wanamaker was when it came to his ad budget, but there is definitely room for improvement when it comes to understanding hidden costs and fruitful expenditures.

For most of us, the coin of the warehouse is time and how it is expended.

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Most companies who implement surveillance programs and other security measures do it because they want to address employee related theft. In industries like warehousing, it’s a common problem,  and it costs up to $15 billion in lost inventory every year. It’s been known for years that companies with excellent security measures can also expect to be more productive, but that’s always been correlation, and the two haven’t been linked by cause. That may have changed based on a recent study.

“Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity,” takes a look at how firm investments in technology – based employee monitoring impact both misconduct and productivity. The study makes a persuasive case that pilferage is an issue that hinges on management style more than individual ethics.

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Earlier this year, Food Logistics published a provocative article, “Automate or Die”.  Do you have to automate? Of course not. But it brings to mind a good question: where is the point of acceptable ROI for automation projects? When does it make sense? What aspects are potential pitfalls?

We’re  inside warehouses, distribution centers, commercial operations, and manufacturing facilities every day. We don’t see full scale automation in all — or even most — of these operations. We’ve even seen some companies who have automated go back to picking with carts. We’ve seen others thrive due to their automated projects. The point is, you certainly won’t “die” if you don’t automate. But that doesn’t mean that you should not automate some or all aspects of your operation.

In some cases, we try to make the case that automation isn’t needed. In others, we try to help these companies understand when a capital investment in automation equipment and/or software will save money, increase productivity, reduce problems, and improve their business. It’s not  something that you can do from a distance.  It requires a command of the facts on the ground, in the servers, and throughout the supply chain.

So, the question is, why automate? 

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What a difference a name can make.

People tend to call any elevated platform a “mezzanine” in this industry, but that may be a mistake. When you are installing or otherwise specifying a platform, you need to be aware that the word “mezzanine” can cost you money and cause headaches when applied incorrectly.

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Is this an unevenly distributed load? Concentrated load?

Line load? Point load? Load of something really heavy?

We have stressed this before: rack loads aren’t just simple weight vs. structure. The dimensions, shape, and size/density of the load as it sits on storage racks is absolutely critical to safe, effective warehouse storage. Our friends at Nashville Wire recently released an excellent piece that helps define the load types and how you can avoid incorrect or unsafe rack loading.

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Studies indicate that order pickers spend too much time walking. Distribution center employees routinely spend more than  half their day walking, not picking orders, packing orders, or replenishing stock. They’re going from point to point, burning man hours getting where they need to be, not working. And that’s the average — for really poorly designed operations, it’s worse.

As they tire, workers pick slower, pick less accurately, and work more dangerously — almost a zombie like situation! Every bad thing that can happen in a warehouse operation is amplified, the more time employees spend walking.

Check out our most recent Info-graphic, “Walking is the Walking Death of Order Picking Productivity”  for more information on ways you can combat this issue.

More information:

• Ways to reduce needless walking
• When it comes to order picking, don’t walk the walk
• Gravity flow vs. shelving 

OSHA estimates 85 deaths, 35,000 serious injuries, and another 62,000 non-serious injuries. More than 11% of forklifts are involved in these accidents every year, meaning that the forklift in your warehouse is statistically destined to have an accident before it goes out of service.

Almost 40% of forklift-related accidents involve a pedestrian

And this doesn’t  take into account the accidents that damage property, but don’t hurt people. Forklift-to-forklift collisions, or forklift colliding with warehouse racks aren’t included in these numbers if people aren’t injured.

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When designing pallet racks, people tend to pay attention to the easy parts. Beam capacity is straight math; the capacity of a pair of beams, so long as the load is evenly distributed, the load properly positioned, and the safety clips are installed, is a reliable number. Upright frame capacities are a more complex, as they rely on vertical spacing between levels. Get these factors right, and typically it doesn’t take an engineer to design a safe and reliable rack system.

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Forklift aisle widths are typically set when pallet racking is installed. In many cases, such as narrow aisle projects, these spaces are critically important. Typically, warehouse managers don’t attempt to lay out these types of storage facilities. But for reach truck, selective rack applications, these aisle sizes are often “eye balled,” or given a 12′ width no matter what type of forklift is using the aisles. If you are laying out a facility, what criteria should you use for rack aisle width?

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Merging two formerly separate industrial operations can be more difficult, expensive, and time consuming than creating an entirely new plant. After all, even in the best of scenarios, it’s almost always easier to start with a blank slate. But in these days of consolidations and cost cutting, this can happen to almost any company.  Planning and open communications is the key in general, but there are specific issues you should be aware of.

What are some pitfalls, and how can you avoid them?

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