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?

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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.

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When you deploy automated equipment and systems like conveyor sortation, picking, packing, and order consolidation, you may think that getting the equipment to do its basic job is the goal. That optimal production and worker performance had been gained. There’s a digital element that you may not have considered, though – a warehouse control system.

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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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With the advent of widespread e-commerce same-day fulfillment, just-in-time principles, lean management, supply chain collaboration, globalization, the need for ever-faster response, and constant pressure to reduce expenses through headcount and shift reductions, today’s warehouse manager is being asked to do more than ever before.

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Operations & Fulfillment (an excellent publication you should be reading if you aren’t already) has published a list of the top locations for warehouses and DC’s in 2009, in this article “Where to Warehouse: The Top 10 for 2009.”

The winner this year was Henderson, Kentucky, assuming a single warehouse. Dallas, Texas finished among the best locations in a 5-warehouse network.

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