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.
How Distribution Centers are Working to Reduce Costs
Tags: ROI, Third Party Logistics, ecommerce, 3PL
Posted in Warehousing & Distribution|
Order Picking Error Rates: What’s Acceptable?
It’s easy to say that you’re striving for 100% accurate pick rates, but how realistic is that goal? And should it be the actual number you shoot for? Mis-picked orders, any number of them, are expensive. Incorrect orders are expensive to re-pick. They’re expensive to return and restock. Shipping dollars are lost both directions. Most importantly, mistakes are expensive because they can cost you customers.
Tags: ROI
Posted in Order Picking & Fulfillment|
Conveyor Costs: The Critical Information You’re Overlooking
A conveyor system is an investment that you don’t take lightly—you want the best equipment you can buy for your money. The most obvious cost of that equipment will be the cost on the initial invoice, but there’s more to consider when purchasing a conveyor…far more. That’s why you should consider the Total Cost of Ownership for your system, and what you can do to decrease it in the long-term. What are the total costs, and how can you reduce them?
Tags: ROI
Posted in Conveyor Optimization|
Warehousing Key Performance Indicators
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: ROI, shipping & receiving, KPI, benchmarking, measurements
Posted in Warehousing & Distribution|
Industrial Automation and The Flexibility Problem
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?
Tags: Warehousing, labor, ROI, Robotics, inventory
Posted in Automation, Labor & Efficiency|
A Guide to Pallet Rack Wire Decking Finishes
There is some confusion about the different finishes that can be applied to a pallet rack wire deck.
Various manufacturers offer different finishes, and you may have need of more than one of them for different types of storage applications. This primer on the common finish options can help you make decisions about your warehouse, load, rack and application.
Tags: wire decking, pallet racking, ROI, pallet storage
Posted in Pallet & Warehouse Racks|
Bridging Warehouse-Office Gap
The warehouse. The office.
Sometimes it’s as if one doesn’t exist to the other. As one of our customers told us, “it’s like we have two companies here, and one doesn’t know what the other is up to.”
But when you’re trying to operate better, it’s impossible to separate the two functions. Decisions can be made in one area that can impact the other severely, so communication and cooperation are vital. Too bad it doesn’t always work that way. How can you improve it?
Tags: Warehouse Management, warehousing, labor, ROI
Posted in Warehousing & Distribution|
Safety and ROI for Industrial Operations
In a recent blog post, Auburn professor Dr. Kevin Gue, one of the bright minds in the industry when it comes to the business of industrial distribution and plant operations, reflected on the reaction to his ProMat 2013 talk on “Designing a Worker-Centric Facility”. Gue has smart points about the relationship between safety and ROI – and how you can deal with those issues.
Tags: industrial safety, ergonomics, ROI
Posted in Safety & Ergonomics|
How to Benchmark Your Warehouse
Comparison is natural – and necessary
Everyone likes to see how they’re doing vs. their industry peers. This isn’t just a natural urge to compare yourself, it’s a vital part of doing business.
Benchmarking, at the heart of it, is comparing your performance to others like you. You look at your business processes and outcomes, and how they stack up to the performance metrics of industry leaders, your peers, and the best from similar operations. In warehousing, it is particularly important to understand where you are, and where you could be with reconfigurations, tweaks, and innovations that others are using to improve their numbers. What do you specifically measure? Typically this can include quality, cost, and time. Specifically, it can get much more complex.
At the end it helps you understand the success of your peers and how you can reproduce that success.
Tags: ROI
Posted in Warehousing & Distribution|
Justifying AisleCop Forklift Safety Gate Systems
We see two kinds of operations that have utilized AisleCop® forklift safety gate systems. The first are those companies who have defined traffic plans and are looking to prevent possible accidents in high-risk, limited-visibility, or heavy-traffic aisles. They foresee potential accidents and are taking measures to prevent them. The second kind are companies who have had an incident, or a near-miss.
Tags: warehousing, warehouse safety, ROI, forklift safety, AisleCop
Posted in Forklift - Pedestrian Safety|