3PL companies operate in an environment that demands rapid changes and requires continual evolution.
Client requirements can change in a week (or less). New business opportunities can spring up that were unanticipated a month before. From my days working for a 3PL, I know that the ability to swiftly change in order to satisfy both your customer’s increasing demands and those of an industry that never rests were a top priority. The problem? That’s easy to understand, but hard to do.
Tags: time management, time saving, flexibility, warehouse flow, 3PL, logistics, mezzanine, warehouse, ROI, Third Party Logistics
Posted in Warehousing & Distribution|
Companies spend lots of time trying to understand the best ways to increase efficiency in their operations. How do I increase pick rates? Why do we spend more time on things that add no value than we should? Why do we make so many mistakes, and how do I stop it? Why is there so much waste in the system? How can this be better organized?
These are all good questions, and the answer to solving these problems usually lies in developing people to work their best.
In this day and age of increasing industrial productivity, tough global competition, and tight labor, integrating personnel development with best practices facility design, automation, processes and management is key to reducing labor costs, increasing margins, and becoming a more profitable operation. People thrive in good environments where they are set up to succeed. What can you do to build the right situation for your people?
Tags: 3PL, order fulfillment, labor, Third Party Logistics, employee development, ecommerce
Posted in Warehousing & Distribution|
Distribution is growing — booming, some would say — particularly in larger markets. This tend is being driven by many factors, including a sustained economic recovery and low unemployment rates. Also, e-commerce powers like Amazon are in the midst of one-day or same-day delivery guarantees that require larger, more capable distribution networks that can serve major markets faster and usually within close proximity. These factors help to create stress on labor shortages in these cities, as newer distribution facilities open and existing ones expand. Add to that, the ongoing woes with skilled labor and a generally aging labor force.
How can you cope with a tight labor market?
Tags: skills gap, labor shortage, ecommerce, 3PL, distribution centers, labor management, Third Party Logistics
Posted in Warehousing & Distribution|
You know that your warehouse is critically important to being able to satisfy customers. You know how warehousing mistakes can impact your company’s bottom line, and how excellent warehousing can boost it. You know that a lack of resources can cripple a thriving storage or distribution operation. You also know that there are people in some organizations who don’t understand this.
Communicating the warehouse’s value is almost as important as establishing it.
Tags: lean warehousing, distribution centers, return on investment, ROI, Corporate Culture
Posted in Warehousing & Distribution|
Performance metrics are a universal way to measure a warehouse operation’s overall effectiveness, quality and productivity. In today’s fast-paced and competitive environment, setting benchmarks and goals for a company is essential, but it’s not enough to set lofty goals for the coming year in terms of revenue, profits or production. In the warehouse, success is the sum of all its parts. To reach overall production, quality, safety or service goals, an examination of each step is essential. Through this evaluation process of different performance metrics, managers can find actionable information and begin prioritizing problems within a warehousing or distribution operation.
We’ve previously discussed how key performance indicators (KPIs) demonstrate the value of warehouse functions. Now, let’s take a dive deeper into five specific performance metrics to consider implementing in the modern warehouse. Read the rest of this entry »
Posted in Warehousing & Distribution|
How many steps do your floor managers take going back and forth to the computer and print stations in the plant as they do their jobs? How much time does all that walking take over a year’s time? How much more work could be done if computers and printers could go where they do? If you’re managing materials going to and from storage, all that travel time is taking valuable people assets away from what should be their primary function. Read the rest of this entry »
Tags: ROI
Posted in Warehousing & Distribution|
In the past year I’ve toured manufacturing facilities that have office space right on the plant floor. Those offices had been added as the company grew and needed more supervisors or engineers on the floor. They were using modular offices, of course. Later, I was fortunate to attend a training session on modular offices done by one of our suppliers, and it was amazing the forethought and engineering that goes into these modular buildings.
Tags: adding room, modular office, building, construction
Posted in Warehousing & Distribution|
When it comes to those costs, the pressure is always on. Particularly in those unfortunate companies where the distribution center is considered just a cost, not a chance to add value. Even if you are hitting cost targets, you are probably interested in reducing operational costs without reducing effectiveness.
Tags: 3PL, ROI, Third Party Logistics, ecommerce
Posted in Warehousing & Distribution|
Key performance indicators – KPI’s – are frequently used in general business to evaluate the success of everything from a specific department to an entire enterprise. They focus on strengths and weaknesses. Many warehousing KPI’s tend to be focused on external performance, such as on-time shipments that directly impact customers. This is a good measure, but the need to go deeper and measure the factors that drive those success rates is critical. What are some KPI’s for warehousing operations?
Tags: benchmarking, measurements, ROI, shipping & receiving, KPI
Posted in Warehousing & Distribution|
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.
Tags: Warehouse Management, lean warehousing, distribution centers, time management
Posted in Warehousing & Distribution|
