Meeting the Customization Needs of Retailers

Many large companies have a variety of needs to meet for their customers. These needs include shipping in bulk and merchandise that requires pick and pack, meeting compliance requirements, private labeling, as well as cost effectiveness, efficiency, and timeliness of deliveries. These customizations are costly, so organizations resort to third party logistics companies in order to accommodate the needs of large as well as smaller, mom and pop shops. Companies are using warehouse management companies that have the ability to customize according to the needs to the retailer.

In order to provide the global logistics services needed, the organization you employ must utilize a strong customization department, which includes over sight of quality control, documentations, accuracy of materials handling and shipping, inventory accuracy and rotations, product rotation, and meeting OSHA and MSDS requirements. Flexibility is of utmost importance when you need to provide services to a multitude of customers. In an effort to sustain high quality and lower cost, organization see the use of outside supply chain companies or warehouse distributers as a cost effective way to meet the challenges of an ever change industry that requires constant updating, new computer systems, continuous documentation, changing levels of distribution, and differing packaging and delivery requirements.

Emergency Response Team

Emergency response directives do not begin or end with information systems or business revitalization. It includes immediate emergency response to protect your employees and continue care for a short period if needed in the event of natural disaster or attack. The size of the emergency response team is determined by the size of your organization.
The team includes a team lead and several team members. Essential in the process includes an action plans in the event of fire or other issues that may arise.

Warehouse action plans take into account what is to be done in the event of a fire, earthquake, flood, etc. Plans include:
· Maps posted throughout the building demonstrates paths to exits
· Emergency lights and lighted EXIT signs
· Appropriate gear that shows that you are part of the response team
· A designated meeting area away from danger
· First Aid and CPR training
· Evacuation plans
· Contact the fire department and plan evacuation plans
· Communication with employees within your organization explaining the process
· At a minimum, three days worth of food and water for every member within the organization
· Emergency gear can include flash lights, transistor radio, back packs for each emergency responder filled with appropriate gear to assist individual, first aid supplies, CPR mouth guard, Willkie talkies are useful, additional batteries
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Ideally, the team members should meet once a month to review and revise action plans. Practice evacuations with both team members and employees quarterly. It is important to reinforce to employees the importance of participation and not to ignore evacuations at any time.

Searching for NAFTA Requirements

The North American Free Trade Agreement (NAFTA) has forever changed how you import and export your goods throughout North America, ultimately affecting third party logistics. NAFTA was created to help eliminate trade barriers and improve transport between the United States, Canada, and Mexico by improving security and facilitating the flow of travel and trade between the three countries . NAFTA is an integration of both bi-lateral and tri-lateral agreements. For instance, the U.S. and Canadian bi-lateral agreement makes transport between countries easier and the transition has been relatively easier than between Mexico and the U.S. The U.S. has invested over 20 million dollars to help Mexico update and make the transition.

In an effort to protect North American goods from outside forces, heavy tariffs are levied against products that are imported from outside North America. NAFTA has also provided important concessions, such as safeguarding against imports that threaten each ones domestic producers. Additionally, sanitation measures have been instituted anything-affecting animals, humans, and agriculture.

On that note, the website for the U.S. Department of Agriculture is available to help you find information about basic exporting, acquiring permits, export financing, USDA Animal and Plant Health Inspection Services (APHIS) import and export information, and the U.S. Commodity Association supplier list. For additional information, visit the website at http://www.fas.usda.gov/.

Commercial Warehouse Cleaning

Along the lines of food sanitation is warehouse sanitation. I spoke about sanitation of food products traveling though the third party logistics chain. Running a warehouse requires organization and cleanliness. Unless you have staff that handles all the aspects of keeping your business on the straight and narrow, it is likely that at some point you will hire a cleaning company to take care of your company. Some cleaning services handle residential homes and others deal with commercial property. Keep in mind that cleaning companies that say that they deal in commercial cleaning may be talking about office buildings, which do not require the same type of attentions as a warehouse or manufacturing plant.

For instance:
· Concrete flooring may not only require cleaning but also removal of stains and repair of cracks. Warehouse cleaning crews use sand blasters and acid wash to achieve results
· Carpets and upholstery may not only need vacuuming but also shampooing and stain removal, along with antistatic application
· The staff needs to be large enough to complete its business during closing time or in shifts to accommodate 24/7 manufacturing
· Cleaning of grounds and parking lot
· Washing windows both inside and out, which can be a challenge with the building that consists of thousands of square footage
. Not all warehouse-cleaning services are created alike, so ask for referrals from other warehouse managers, and check with your local Better Business Bureau as well as current licensing bureau.

Food Sanitation

Food sanitation and safety is a growing concern both in the United States and abroad. Food safety does not begin at the warehouse or manufacturing level of food transport to the consumer. It begins at the farm. As a buyer, you have the right to know if the food that comes to you is impeccable. One concern includes the use of reclaimed water, which is formerly wastewater that is treated. Although the water has gone through a water treatment process, studies have shown that people can ingest harmful pathogens. Other concerns at the farm level include clean equipment, maintenance, moisture deterrence, and cleaning practices.

Once the food is transported from the grower to the warehouse or manufacturer, it is imperative that appropriate measures are taken to ensure cleanliness. Areas of concern include maintaining a rigorous cleaning regimen, sanitation verification, and installing equipment such as filters, screens, or magnets to detect metal fragments, specifically structured to deter food contamination.

Along the entire supply chain, continual product testing, inspection, and compliance with food safety procedures is essential. Helpful to maintaining the utmost in food sanitation is documentation, training, continual process improvement, and third party audits conducted by individuals that have experience with the food processing industry.

Authentic UPC Codes

Use the right UPC codes for its intended purpose. First, determine the type of code that you require. The code you purchase is determined by the need. For instance, The GTIN Global Trade Item Number is used for items or services that are bought or sold. These are products that requires a price, can be ordered, or require an invoice at any point within the supply chain. The bar code is linked to pre-determined information about the item within a global network.

The SSCC Serial Shipping Container Codes is used for tagging items that are used for transport and storage within the supply chain.

The GLN Global Location Number is used to identify the physical location and legal entity associated with the product. This type of coding helps to improve communications. This system is integrated with the Global Data Synchronization Network.

Important to all this is to purchase a UPC code that that is issued by a legal sources known as the GS1. Once bought, the UPC code is your asset and can be reused as needed. It is valid worldwide. Because a UPC code is a unique code, it is registered with the Global Trade Item Number Registry, which is the GEPIR Global Electronic Party Information Register: a database that contains information on over a million companies in over a 100 countries.

The Appropriate Attorney for the Job

The importance of reviewing or writing strong contracts between yours organization and vendors or customers is vital. If contracts are one sided between your warehouse and a vendor, then you may run into difficulties releasing that vendor should quality or dependability become substandard. The same holds true for employment policies and procedures. Although, there are established federal regulations about labor standards, each state also has its own set of labor laws.

Attorneys are not one size fits all. Although, it would be ideal to have one lawyer handle all our company’s issues, reality is quite different. Attorneys are trusted consultants and each specialize in a specific field or industry.

Although you may be tempted to use an attorney that is well known to you and your business associates that has aided you for other issues in the past, it is best that you hire a lawyer that is knowledgeable within the field of concern. Use a labor law attorney for employee concerns, a real estate attorney to review a lease contract for a new building, and so forth.

Sound like too much trouble or money? You may change your mind if given incorrect information, or you have an attorney that cannot give you a confident answer. An “I believe” in any answer from an attorney warrants a red flag. Check with your region’s American Bar Association and trusted industry experts to help you find a competent attorney.

Smart Labeling

Along with the many labeling requirements that come along with warehousing and third party logistics is the responsibility of choosing the right label printer and encoder. The wrong decisions can cost you more than time lost. It can result in shipping delays, which ultimately means unhappy customers and lost revenue.

There are numerous types of printers from which to choose. So, what is out there?

· The print and apply method is pretty self-explanatory
· Thermal transfer print technology entails using heat to melt the material from the tape onto the label
· The Tamp-Down method includes pressing the adhesive side of the label to the product
· The Blow-on methods requires a burst of air to imprint the label
· The wipe-on technology uses a pressure sensitive application process

A relatively new method of labeling involves a reduced glue labeling technology, which uses less glue by applying the adhesive to the leading edge of the label and on the trailing edge, which overlaps the leading edge of the following label. This method has proven to be cost effective by reducing the cost of adhesive from 30 to 50%.

No matter what label printer technology you decide upon, make certain that you can integrate the software and hardware with your current equipment. Consider price-point, cost of integrating new and old technology, and allotment of time required to make the change.

Compliance Labeling

Hold on to your hats, compliance labeling is going to be getting bigger. Compliance labeling in the manufacturing and warehousing industry is incredibly important. Incorrect labeling can create issues with channel deliveries, delays, fines, and loss of business, because of shipping delays and non-compliance. Compliance labeling is used in retail, food industry, auto, electronics, healthcare, and many others.

Compliance labeling used depends upon your industry. The food packaging industry must include calories, ingredients, and food allergens. Retail labeling requirements include GS1-128, which was developed to create global standardization for the exchange of data. The symbology coordinates with a pre-determined description. The Unites States Department of Agriculture has recently developed the requirement of the USDA 2009 Country of Origin Labeling. Labeling also includes BISG ISBN Carton Labels, SCC-14, ISBN, Bookland EAN, and UPC, GTIN Database. It just keeps getting more complicated from there.

Most labeling systems integrate both shipping label and packing slips printed on a single unit. These systems also allow you to label and track the products. In the manufacturing industry, it is essential that the labeling system is efficient, does not smudge the label, utilized bar-coding systems, incorporate the appropriate information, has a reliable high volume printer, and works efficiently, so that production is not disrupted.

The Holiday Dilemma

This question comes up every year during the holiday season. How do you go about celebrating the holiday while keeping the terminology politically correct? Each individual has his or her own way of celebrating their spirituality, so things can get sticky when a specific terminology is used to celebrate time away or at work, such as Christmas Party verses Holiday Party. Laborers may become quite offended if you call a celebration a Christmas party, but the laborer is not Christian. It is not unusual for managers within an organization to find themselves in an uncomfortable situation or lawsuit over terminology used innocuously.

The assumption is that if an organization is privately owned, that it does not matter what terminology is used. Unfortunately, even though the sentiment is kindly meant, individuals may find this to be offensive. The general rule is to keep terminology general and open the festivities up to other denominations. For instance, if Christmas is celebrated within your organization, consider asking if workers have an interest in celebrating Kwanzaa, Hanukkah, or Bodhi Day.

Keep in mind, holidays are not a right and are given to employees as a benefit, so it is not necessary to give everyone time off every time a holiday comes around. However, if you provide holiday pay for celebrating Christmas is may be wise to offer the same benefit to individuals that celebrate other ethnic or religious holidays instead of Christmas.

This is not an easy situation to resolve. If you encounter an issue at work, then an open mind and understanding is an essential attribute to have. Look at alternative for individuals that do not celebrate the same holidays as you and speak with a human resources consultant or attorney to help you make decisions that affect employment policies.

Pick and Pass

The concept of pick and pass also known as split case picking helps complete pick orders. The warehouse pick and pass methods is particularly helpful when labor is at a premium. A conveyor is essential in order to set up multiple packing zones.

The picking and packing process always starts at zone one. Each bin has a required list of items added in the kitting process or multiple orders. As the box or bin passes a worker, the individual adds the item listed. If that zone does not possess the items required, then it moves to the next station until all items have been included. Like most processes, the pick and pass method can use the paper and checklist utilize voice software. The software used must be flexible enough to configure the picking process to accommodate several pick and pack orders.
I found this method useful, but the most difficult to explain clearly. Conveying (no pun intended) this concept took a bit of work for me, so I researched the concept and found an article from Logistics News that was easy to read and explains this idea fairly clearly.

Building a Green Warehouse

We leave a carbon foot print in everything we do, eat, and utilize. Although, progress is considered a good thing, too much of a good thing can be bad for you. Society is much more aware of how the earth and its resources are used and abused. With this added awareness, it is essential that organizations realize that they need to be perceived as socially consciences.

Sustainable building is becoming the rage. Old buildings are often retrofitted and new buildings tend to reflect alternative methods during construction to save energy in a variety of ways. From top to bottom, there is opportunity to use sustainable methods within the development of the building such as using low-pressure toilets and waterless urinals. Other methods involve upgrading insulation, using recycled materials, the use of skylights, solar panels, and motion detector light sensors to eliminate energy waste. Installing energy efficient windows and using floor based air conditioning and heating units help save power and money once the warehouse is in operation. Installing a geothermal energy system is efficient and better for the environment. During the build out, consider using building materials from the local area rather than shipping from abroad and recycle as much construction waste as possible. This only scratches the surface of how you can accomplish a goal of building a green warehouse.

Granted, the initial expense of building a sustainable warehouse tends to be approximately 2% more that the average cost of construction, but over the next twenty years, on average, you can save up to ten times the cost of energy alone.

Flextime

Employees want more benefits, but as an employer, you are plagued by the high cost that additional benefits may add to the already increasing cost of healthcare benefits. So what can you do? Sometimes you do not have to spend additional funds to make employees feel content within their occupations. You may want to consider offering an alternative to the nine to five workweeks. Whether man or woman, many laborers have family and children with which to contend and having the flexibility to work around handling family matters can be just as important or more so to an employee than money.

An individual that needs to take care of an ailing family member, elderly parent, or children that are still in school, who have the flexibility in their work life to handle family matters can typically concentrate better on work if they are not worrying about taking care of matters at home.

Flextime can come in a variety of forms such as ten hour day, four days a week, split shifts where the employee can work morning and evening, but are able to be home in the afternoons to care for their children. Another method includes splitting a shift with another worker that needs to work afternoons while the other has a need to work mornings. Laborers often find that the flexibility in the workday has the equivalent or more value than money.

If this is an option that you may want to consider but do not know if it of importance to your work force, consider taking a survey to determine the validity of whether or not this is a value within your organization. Your Human Resources department can be of great help in helping you to determine the feasibility of such a program.

The Importance of Professionalism

Professionalism seems to be lacking by employees in all levels of organizations. Whether working in a financial industry such as banking or within a third party logistics company, standards of professionalism vary, but all should have a certain level. According to the Merriam-Webster’s Dictionary, the definition of Professional is “exhibiting a courteous, conscientious, and generally businesslike manner in the work place.”

Unfortunately, professionalism seems to have gone the way of the horse and carriage. Whether working in a warehouse facility picking and packing or middle and upper management, professionalism should be expected from each individual within your organization. Professionalism is simply the use of manners when dealing with co-workers, customers, and vendors. Actions such as not interrupting or correcting colleagues, rummaging or taking items from an associate’s work area, knocking before entering an office, minding your “P’s and Q’s”, or maintaining an excellent sense of integrity.

Employees come from a variety of familial and cultural backgrounds, so may be unaware of the standards of professionalism within your company. It is up to management within the company to expect and enforce a certain standard of behavior in courtesy and should be expected and enforced. It is possible to learn or change certain behavior, so if you have issues within your organization consider creating a workshop to assist employees with this concept. Your human resources department may be a good area with which to begin.

Foam-in Place

Styrofoam packaging that breaks easily, peanut packaging that end up all over the place, and bubble wrap that works well but requires a lot to fill a box work well but are not always ideal to protect the product departing from the warehouse and ship across the nation or world. An alternative method of warehouse packing is foam-in place protective packaging.

The foam-in place is a cushioning method that filled voids in packages to protect items in transit. The polyurethane foam is in liquid form that expands up to 200% of its original size and solidifies.

One method of the foam-in place method includes the following steps.
· Line the box with a strong film suited for the process
· Using a hand held dispenser with the use of a compression air system, spray the liquid
· The liquid expands
· Fold over the film, then place the product firmly in place
· Place lining over the items
· Spray foam and fold sheet over
The foam expands to fill space around the product to keep expensive and/or delicate items in place, in order to prevent damage during transit.

A similar method includes pre-packaged liquid foam that expands once activated by rubbing or pressing. Place the pack in the box, press the product in, and then repeat the process again.

There are various manufacturers and systems and the method you choose depend upon size and volume.

Intermodelism

It was only sixty years ago that inter-modalism was just a concept. Cargo moving internationally traveled inefficiently and took far longer than it does today to arrive to its destination. The movement of goods was slow, unorganized, and goods typically sat until the next step on the route was scheduled. The transfer of cargo from ship to dock to train to truck to warehouse to truck and finally to its final destination was at best inefficient. Logistics has come far with a world-wide intermodal network that makes use of water, air, and land in the most efficient and cost-effective way.

The movement of containerized goods transferred internationally has become seamless. The transport of thousands of cases, boxes, raw goods, even produce has become an integrated system of transportation networks. This concept of inter-related transport has even led to new logistics terminology such as load centers, which is the port that cargo is off loaded, and LOLO, which means the lifting on and lifting off of cargo via the use of cranes to load and unload cargo.

Logistics management involves strong organizational skills, project management skills, training, negotiations ability, appropriate software, excellent computer skills, and a great deal of strategic planning.

Warehouses Be Aware of Company Branding

Brand management is an effective marketing tool that helps companies increases the perceived value of their products. A company’s trademark helps increase its competitive edge. Customers buy products that he or she trust and believe provides them with the best value.

Warehouses provide services such as packaging for clients that fit within the needs of the manufacturer and client. Secure packaging is important, but just as essential to your success is maintaining the company’s brand management on all packages that leave the manufacturer’s docking areas. You should consider hiring a third party distributer that provides a packaging and distribution service all the while being careful to be awareness of the client’s branding standards.

Package branding must encompass the internal packaging and forms as well as outer labels on that are immediately apparent on the box. Inconsistent branding can lead to confusion and detract from the product and company’s value.

Branding also includes the quality of the product as well as the outside container. A third party Logistics Company that produces inferior product for the company will inevitably ruin a company’s brand. Important to the success of your organization is consistent oversight of the manufacturing and packaging process.

Video Conferencing Magic

Individuals working in the warehousing and manufacturing industry work with organizations around the world. There was a time that there was no alternative than to travel physically to meet with clients or manufacturers in order to conduct business. Even with today’s technological advances, managers and business owners travel thousands of miles by plane, train, and car every year to conduct important business.

Although meeting associates provides a personal touch, it does cost thousands of dollars each year and puts a hefty dent in profits, often adversely affecting the financial health of an organization. Fortunately, there is an effective alternative to travel. Teleconferencing and video conferencing has come a long way. The combination use of computer technology, video conferencing, and telephone has provided a viable alternative to travel. Even though the initial investment may require several thousand dollars, the savings in travel cost is immediately visible. Cost savings include rental cars, hotels, airline tickets, non-refundable tickets if travel is cancelled, internal administrative costs, airline tickets, overtime, lower turnover rates, and most significantly, time.

Needless to say that if travel is already kept at a minimum within your organization, a video conferencing system may not be ideal, but it can make an enormous impact if travel is a large component of your expenses each year.

Inventory Accuracy

An enormous concern regarding warehousing is inventory control, which is, to say the least, not easy. With the influx and outgoing parts moving through the warehouse quickly, it becomes difficult to get an accurate count. For most 24/7 environments, it is not feasible to close down operations once a year in order to get an accurate count.

The alternative options is to use the cycle counting method, which entails using counting a subset of the inventory rather than your entire inventory. This tends to be a better method, because you are able to remain current on inventory discrepancies. Start with your problem areas and conduct a cycle count more often in these areas. You may even consider doing a cycle count every day until you get the problem under control.

Important to conducting a cycle count is taking into account incoming and outgoing product within the specific time that inventory is audited. Compare variances to determine accuracy. Keep in mind that the number of parts within an inventory will affect the variance percentage; the greater the number of parts, the higher the accuracy rate. Do provide adequate training in order to ensure accurate measures, otherwise all the work was in vain.

Inventory audits ensures success for your organization, so it is vital to your organization to establish defined processes and to document in detail location, part, and when the inventory count what conducted.

Less Than Truckload

Most manufacturers and vendors do not have the resources to ship out products, due to the cost of purchasing vehicles, the labor, insurance, and maintenance crew that are required to keep a fleet moving seamlessly. The other issue to consider is whether you have enough products that fill a truckload for shipping.

The wonderful thing about a third party logistics company is that they allow you to make shipments that are less than a truckload or truck full. The benefit of using a logistics company is that they coordinate the shipment from loading to arrival. Because of the sheer volume of shipments that flows through their organization, the company has the benefit of being able to negotiate rates and get much better pricing than an independent manufacturer that cannot compete with a larger shipping company. You also do not have to deal with insurance, security, or the volume of paperwork that is required especially if shipping overseas.

There are a few drawbacks, though. The first is that you do give up control once the merchandise leaves your facility. It is now in the hands of a third party logistics company as well as the carrier. Another drawback is that the shipments take longer to arrive to their destinations, because you now have to wait until the trucks pick up all their loads and fill the trucks before arriving to their designated destinations.

Despite the inconveniences, the benefits offered by a third party logistics company it can more than out way the drawbacks when you have less than a truckload.

Sales in a Logistics Environment

Sales agents in third party logistics have a common complaint right now and that is that it is much more difficult now to find new clients than it was two or three years ago. I am hearing that clients are saying that they are happy with their current carriers and they do not have any new business, so “no thanks.” However, is it that the client does not need additional help, or you have not been persistent enough?

First and foremost, the essential aspect of earning clients for your organization is persistence. You will encounter people that tell you they have no need, or they are happy with their current service, No matter how happy they say they are now, inevitably, their current logistics company will make a mistake. So, what do you do in the mean time? Keep calling. Studies show that the majority of sales people give up after the second decline, but it can take a minimum of seven “no’s” before getting a “yes” answer.

If you are unable to use a sales database to keep track of prospects, set up your own tickler system. Some individuals use their own spreadsheet system or a paper-based binder system. It does not need to be high-tech. Keep track of whom you speak with, when, what you talked about, even personal information that he or she volunteers. Refer back to that information every time you call them and call them consistently. Working in sales has shown me not to take it personally. It is just business. Most important, do not give up.

Workforce Planning in a Warehouse Environment

We are coming up on seasonal changes, which affect the influx of orders within a warehouse. At this point, you should have already planned your strategy with management to determine your workforce needs. Important metrics to review are past and future market trends, client orders, vendor deliveries, time of year, and cross-docking requirements in order to determine man hours that will be needed. Remember to consider training requirements and specialized knowledge that might be required.

Next, breakout duties to determine specialized and specific needs, understand your available labor resources, and estimate man power hours that will be required to fulfill orders. Important to the success of your workforce planning is the use of a warehouse management system that will help you determine material flow, coordinate labor with output requirement, and productivity reports, which help determine productivity. Critical to this process is to balance the mitigation of downtown yet avoid employee shortage, which affects completion of shipments. Remember to continue to evaluate, revise, and re-evaluate your workload planning often to maximize your labor resources.

Finally, communication on all levels is critical to the preparation and continued excellence in service in order to avoid misunderstanding, which can lead to a decrease in profitability because of waste or unsatisfied clients.

Sources
it.toolbox.com/blogs/wms-essentials/what-is-warehouse-management-system-wms-18819
builderau.com.au/strategy/projectmanagement/soa/Workload-planning-is-an-ongoing-process/0,339028292,320274629,00.htm#comment-1

Employee Recognition - Lower Turnover

It is no secret that an employee, who perceives that their employer cares about them, is happier. Although, each individual has their own idea of what makes him or her happy, the concept really is the same. Now, that does not mean handing out money. It means that you, as an employer, show employee appreciation.

Throwing money at a problem is not always the answer. Often, when an employer makes a counter offer to an individual that plans to leave a company, the solution is short lived. Money puts a bandage on a problem. It does not always fix it, because ultimately, the problem has not been resolved that causes someone to want to depart in the first place.

Do not get me wrong. Employee compensation, benefits, and perks are as important as ever, but they are not everything when it comes to feeling a sense of fulfillment and contentment at work. This can manifest in any number of forms, such as acknowledging someone’s hard work and accomplishments; saying “thank you”, treating people with respect and courtesy, even providing plastic utensils and coffee in the company kitchen shows consideration for the well being of the employee. Some companies go as far as providing groceries for breakfast and lunch. By supplementing groceries, employees get a financial boost as well as feeling as if they are a valued asset to the organization.

Employee appreciation comes in many forms, so be mindful of the small things that can make a big difference in the comfort and welfare if your employees, whether that is offering flextime or a holiday bonuses. The benefits ultimately manifest themselves in happier employees, few employee relations problems, lower turnover, and higher productivity.

RFID Technology Used Outside 3PL

Not strictly for third party logistics or warehouse use anymore, the Radio Frequency Identification (RFID) system is being adopted by organizations to track their non-standard goods throughout several locations. Dress for Less in South Central Pennsylvania, a not for profit group helping women, that are down and out obtain business attire and prepare for a new life, is utilizing the wireless system to track their donated items.

Normally used for tracking standardized items that are in a warehouse environment, the RFID system is also useful for organizations that have a large inventory of miscellaneous items. A drawback of managing donated items is the non-standardized styles and sizes that you see in department stores. Now, these institutions have the ability to keep track of all items, by size, style, and location. The hangtags will be attached to the items and information downloaded, which will allow them to know exactly what is on hand and where. Another great side effect is that they will now be able to focus their fundraising on items truly need rather than waste energy on a shotgun method.

The possibilities are limitless for non-profits that deal in everything from clothing to durable medical equipment. Unfortunately, individuals that do not work within a 3PL environment do not typically know that the technology exists and can be manipulated for use in other industries.

Loading Safety First

A constant reminder to the ongoing struggle to mitigate on the job injuries is that dreaded OSHA accident report, which is posted every year for the world to see. One area that needs constant improvement and vigilance is safety on the worksite. Often, accidents happen when trucks are thought to be fully loaded and ready to depart.

Plan for What Could Happen
From the very beginning while in the planning stages of setting up your warehouse, there should be an area specifically designated for each task, so you have control as to where and when your equipment is in use and your workers walk. For example, the loading dock should have its own designated area. Use brightly painted lines to designate open areas and add to that signs and cones to inform workers of danger zones.

The next area of safety includes both the driver and loader. Unfortunately, communication breaks down and while one individual may assume that the loading is complete, another worker assumes that the driver knows that he or she is still in the trailer. You know what they say about the word “assume.” What typically happens is the diver takes off with the worker still in the back of the truck causing injury to that employee.

Important to the safety of everyone involved is constant communication as well as ropes and blocks to deter individuals from entering a loading zone with trucks that may be ready to move. It is inevitable that there is going to be some form of injury within a warehouse environment, but never let it be said, it was because of your organizations lack of effort. The key is to mitigate injuries as much as possible by taking proper precautions and providing adequate training.

A Comprehensive Warehouse Management System

I have to admit this warehouse management system (WMS) is really cool. The Proteus Warehouse WMS reporting system provides so many options and functions that your management group won’t want to wait to use it, so they can play with it.

An all-encompassing warehouse management information system handles just about every function in a supply chain organization. The Proteus system allows you to run accurate inquiries through the comprehensive database management system such as layout requirements, exception reports. Studying historical data to helps track future trends. It notifies project managers of changes to their personal computers, to a remote location, even to your cell phone.

Other great functions include the integration of your current WMS system, task management system that helps you to release and allocate orders and assign tasks, map staff allocation, and track equipment usage by workers. Additional services include integration of your manual and voice picking system, and allocates picking by zone, batch, or individually.

Along with all the great features, is the “paperlessness” of the system that integrates with radio frequency terminals that transmits direction to the warehouse staff. A great WMS system improves inventory control, is flexible, improves productivity, and growth.

Supply Chain Sustainability

Think green, recycle, do not use plastic bottles, be aware of landfill issues, water pollution, dirt erosion, over foresting, driving plant and animal species into extinction. Wow, the day of reckoning is here. Although, there has been talk about saving our environment and thinking green for a long time, an interesting phenomenon has occurred during these difficult economic times. Most notable is the idea of creating environmentally friendly manufacturing environments. If not already doing so, organizations are heavily considering the re-use, recycling, or selling of bi-products.

This idea has also seeped to other facets of supply chain manufacturing such as contracting with suppliers that are environmentally aware, using “smart” packaging methods, which entails using more efficient methods of wrapping products for shipping and retail purposes. Included as part of the overall concept of green sustainability is finding alternative methods of transportation.

The overall concept means thinking outside the proverbial box, whether that means using or selling bi-products from animal or plant sources or finding alternative methods of manufacturing or transportation. The great news is that the idea of supply chain sustainability can actually save you money in the long run as well as promote positive PR for your organization.

Read the “Green Supply Chain” by Patrick Penfield for a great general overview of this concept.

Traka Key Security in the 3PL and Warehouse Environment

You have a hundreds of thousands dollars wrapped up in equipment, so the last thing you want is for it to either go missing, cause damage, or worse cause damage to someone or their property. Seeing a need, Traka developed an electronic key security system that can help you protect your assets, whether it is a forklift or entrance to a manufacturing plant.

Traka’s ifob is an innovative solution to controlling access to a location or equipment. Because the equipment is pre-programmed, you not only control who has access to your equipment but length of time, as well. The ifob records who has taken the key, as well as the date, time, and specific equipment. It can be pre-programmed for a specific period. The information is stored within the ifob until the individual returns to the cabinet and downloads it. Should the ifob be used outside the pre-determined time, then the key stops working and access is denied.

The electronic key management system helps guarantee that keys are used only by authorized personnel, ultimately ensuring over site of equipment and the individuals that have access to that tool.

Warehouse Packaging and Repackaging Services

Products going to market need to be packaged specifically to protect them from damage, tampering, or spoilage. Each product has different and specific needs. For instance, food is packaged differently than electronics.

Ideally, you want to find a warehouse that is flexible enough to handle your specific needs. Some warehouses may not be equipped to handle perishable or pharmaceutical goods. Incorrect packaging methods lead to substantial damage, dissatisfied customers, and poor return on investments.

A warehouse that looks after your interest is one that understands the need to consolidate packaging during kitting as well as using the appropriate packaging that is intended to protect the item.

Methods of packaging include:
· Packaging for electronics that includes antistatic material
· Food packaging must be food safe and approved by the Food and Drug Administration
· Medication and vitamins need to be packaged in tamper evident packaging
· Warehouses must have a method to label expiration dates on the package
· Shrink wrap is used a variety products and show tamper resistance
· Flexible enough to offer clam shell packaging to fit the product appropriately
· Layered assembly of foam, corrugated or combination packaging
· Repacking of product that are shipped to different markets such as the United States verses Canada
· Repackaging of products that are going to a warehouse club or store

Flexibility and prior industry knowledge is important when choosing a warehouse to package your product. If you are unsure of the best packaging method, then consult with an industry leader.

Static Free Kitting

Kitting is an invaluable service that warehouses provide for organizations that need to have materials assembled and shipped to customers. This service is essential to companies that do not have the resources to set up a kitting and distribution center. The kitting of electronics does require a different level of over site, because damage can occur in manners other than dropping or smashing. Electronics can be damaged if they are not protected from electromagnetic static.

Undoubtedly, it is difficult to monitor the handling of electronic material from the supplier, but once the shipment arrives to receiving, you have control of how the product is handled. Fortunately, there are electrostatic dissipative that can help with protecting the products from damage once they arrive to your location.

Assuming that the electronic components have arrived unscathed from the supplier, it then becomes your organizations responsibility to ensure that the kitting process continues in a safe effective manner.

Safeguards include:
· Training your employees the proper manner for handling
· Keeping the appropriate wrapping on the product until ready for assembly
· Use of grounding clamps or static wrist straps
· The use of static electricity meters
· Using anti-static bags, foam bubbles, dry packaging, or sheets
· Anti-static gloves
· Having available specific static control stations

Essential to assembling and shipping electronic instruments, circuit boards, components, film, medical devices, and more is training your employees and using the proper procedures and equipment.

Pick to Light in Lean Manufacturing

Of great concern to any warehouse that offers a kitting service are errors, which can lead to loss in revenue because of product damage, returns, or loss of customers, because of poor performance by the warehouse service. In an effort to improve efficiency, warehouses have turned to lean manufacturing models to reduce the frequency of errors in the picking and packing process.

The pick to light manufacturing is another method implemented that helps eliminate waste, reduce errors, and improve efficiency. The light-directed order fulfillment method encompasses the use of light indicators mounted to shelves, flow racks, workbenches, and other areas that need to draw attention. The communication system is integrated between the mobile pick station, data server, and network. It is also easily integrated with your current warehouse management system, whether it is a pre-packaged, or an in-house system. Maps of the manufacturing kit is located on the mobile pick station and displays the type, quantity, and placement of parts within the manufacturing lists which can be tracked by barcodes.

During the kitting process, the lights come on to draw attention to the next production area. The automation of this process increases the speed and accuracy of picking and kitting by lighting the path in sequence. Another benefit is the elimination of paper, which limits the number of times that a document is handled opening the door to errors because of miscommunication.

Important to Track Metrics

It is lovely to think that a third party logistics company has your back by making sure that everything is taken care of with the utmost professionalism. It is difficult to give up control and depend upon someone else to take care of a vital role of your business. Although, many third party logistics companies and warehouses do a great job at taking care of your customers, there are those that are concerned more about their profits rather than providing good service. Unfortunately, supervisors for these companies do not have a thorough understanding of the correlation between their success and that of their customer.

Consider that your company promises a certain level of service such as an excellent product, delivered in a timely manner, with excellent customer service. If any one of those elements is missing, then the circle of service is broken and profits drop.

The importance of oversight is so important that it can make or break your company’s success. Metrics is important to measuring the consistency or lack of service being provided to both your organization and customers. Tracking activities such as number of returns, complaints, customer service, increase, or decrease in sales, success of programs, among a plethora of facts will help you to monitor closely success rate. Remember that you will need to set benchmarks in order to compare your numbers.

Ecommerce Offers Great Benefits

Not enough time to keep up with everyday activities of taking care of yourself or family. You are not the only one. Put yourself in your customer’s position. Many individuals work ten plus hours a day, six or seven days a week. They look for ways to save time yet may not be able to spend a great deal of money. Alternatives include shopping online. This includes vitamins, clothing, medication, even food.

A popular solution for many supply chains is to move into the realm of ecommerce. On-line demand has increased dramatically over the years, despite the economy. The benefits of using a supply chain provider that provides ecommerce is that it helps provide a relatively easy resource similar to a retail setting without the overhead. Although, you may need to pay for the technical services, it does tend to be much less costly than setting up a retail operation at several locations. Capital expenses such as retail space, utilities, labor, and insurance expenses such as workers’ compensation and liability are greatly reduced.

Even grocery stores have opened a division in their operation that includes ecommerce; offering their customer the option to purchase groceries via online orders that are delivered to the location.

Truly, most industries can take advantage of ecommerce, and I certainly encourage you to at least look into potential ecommerce opportunities that may help you to increase profits.

Customer Non-Service

I have actually talked to folks that have told me that they would change companies if they knew that they would be dealing with a human being at the other end of the line. Warehouses that provide a call center service make more enemies than they realize when they do not hire enough people to work within the center. Unfortunately, in order to save money, companies cut costs in areas that can truly affect customer retention. Sometimes, layoffs may not be the solution to financial problems.

Why?
Customers are tired of being sent to a queue. Even though the phone system you use may have a phone system that tell the customer which number caller they are or how much time left until they are served, customers just become irritated with the lack of consideration of their time. The other complaint I have run across has to do with speaking into an automatic response system that asks you to speak your selection. Unfortunately, the system does not have an aptitude for understanding English with a foreign accent

Result:
Really really angry customers and loss of profits due to a decline in sales. Money is scarce and people want the most out of their money including good customer service and consideration of their time.

Solution:
If you use a telecommunications service, do your research. There are good services out there, but make sure that you get referrals and references to services that are familiar with your product line. Consider doing a short-term contract until you know that the service is truly up to par.

Consider Heavy Metal

Protecting merchandise is an important aspect of a third party logistics company and the warehouse industry. Millions of dollars in merchandise is damaged in transit and storage, so finding alternative ways to protect the goods is important to your organization. A popular alternative to wooden pallets and shrink wrap or cardboard boxes is by the use of wire metal containers.

Pros: Wire metal containers are reinforced, reusable and long lasting; up to ten years, thus making them a green alternative to other products. Like wood pallets, they are stackable and returnable to the company from which you rent them or you can store them for future use. They are light and strong, tend not to rust, are adaptable to many products, easy to clean, and can be wheel mounted on castors. Since they are made of wire mesh, dirt does not easily accumulate on them, do not sag as much as wood or plastic, and they do not absorb the smells or bacteria that other materials do. Most are made with half or full drop gates in front for easy loading and unloading.

Cons: There are many positive aspects to using metal containers, but there can be some drawbacks. They are durable and long lasting, but they can be expensive. Small objects do fall through the grates nor are they moisture resistant. Although, they are supposed to be rust resistant, over time and long exposure to moisture could cause deterioration.

There are many alternatives for shipping merchandise and methods will be determined by cost, effectiveness, and feasibility of use.

A Cool Solution to Communications Problems

Communication has always been an issue for companies especially in a warehouse setting where you need to contact employees that are spread out throughout a large facility. It can be burdensome to track down the individual you need to speak with, so a company called Radicomm has developed a cross breed of cell phone and walkie-talkie to resolve this problem.

You need to communicate quickly and effectively with your workers, but cell phone costs are astronomical. What do you do? Radicomm has an effective method to communicate without having to pay for the monthly minutes required to keep communications going. Although, the premise is similar with the one button touch and talk system, it offers cell phone like convenience by allowing you to speak with an employee individually. Unlike walkie-talkies, you can speak with an individual confidentially without the fear of broadcasting the conversation.

It runs on automated data collectors that you already have connect to your existing LAN infrastructure. It runs on a Windows Mobile 5.0 or later version software that is encrypted for safety. You can determine how the phones are used and to whom the employee can speak with in order to prevent abuse of the system. A great feature is that it is voice enabled and do not have a monthly service charge.

Procurement: Both Art & Science

Poor procurement practices can cost your organization millions in lost revenue and added expenditures because of over inventory issues. Procurement is a science that requires talent in project management and serious multi-tasking. Procurement requires a knowledge and talent for managing, controlling, directing purchases, and coordinating movement of the materials that arrive to the warehouse.

Of utmost importance is researching and developing resources for supplies and parts. Managing supply sources requires oversight of the quality of material received, quantity, dependability, and involving closely following trends in the market for those resources needed. Another important talent is contract management. Negotiating long or short-term contracts is a critical aspect of meeting budget restrictions. Remember to ask about an opt-out option if the supplier does not meet your specific standards of delivery.

It is easy to see how poor procurement practices affect your bottom line. No, wrong parts, or under stock of inventory affects manufacturing leading to no or delayed production and very angry customers. An overstock in supplies is a huge waste of money.

It is essential to the success of your third party logistics company or warehouse distribution center to work closely with both your suppliers and customers, so you can closely coordinate activity within the plant. If you need to hire an employee to fill this position, consider someone with a minimum of a bachelor’s degree and five plus years prior experience preferably within the same industry. Important to the overall efficiently in production is a strong individual and best practice.

Warehouse Auctions

I recently interviewed an individual that spent her childhood in post war Europe after World War II. Guess what folks, I was told that the economy is worse now than it was after a world war. We are all looking for ways to save a buck and in today’s market, every little bit helps.

Opportunity abounds if you are looking for them. Smart business owners are looking for ways to expand and maintain their current holdings by purchasing new to them equipment. With a great deal of closures because of down-sizing, right sizing, or company closures, used and refurbished warehouse equipment are being liquidated at an enormous discount. We are talking about trucks, conveyors, loaders, lift trucks, air compressors, and much more at a fourth of the price of new equipment.

The savings of purchasing used and surplus equipment can offset the cost of shipping, even for tremendously heavy equipment like trackers. Specialty online and live auctions houses have become popular options for a variety of industries including manufacturing, third party logistics companies, as well as warehouse facilities.

The internet is a popular method to begin your search. It is recommended that you research the auction house to ensure it is a reputable provider. Keep in mind that it is best to view physically your merchandise before actually purchasing. Unfortunately, there are scam artists that will take advantage of you if you have little knowledge of the product and have not invested the time to review the merchandise before purchasing.

Happy Shopping.

Important to the Success of Any Organization

Warehousing managers, third party logistics companies, and supply chain managers all have the same problem, which is to hire individuals that are competent to do the job. Hiring the wrong person for any position is detrimental to the success of an organization; more so if he or she is in a management position.

Creating a job description is the first step to hiring the right person. Without one, you really have no idea what skills are required by the individual to do an effective job at running the operations. The error that many managers make is not to get the input of workers that have actually worked in the position. Although, it is necessary to delineate the requirements of the positions, it is also important to speak with the employees that actually spend time in the trenches. Sorry to say, that unless you have worked your way up within the organization, you may not have a good idea of the day-to-day activities that a worker does. The other drawback is that working secluded in an office interacting with upper management, can lead to a disassociation between employees and upper-level management.

Lean manufacturing and ISO certification requires that each position and job is broken down in the most basic steps in order to streamline work and help improve work performance. Start with the end in mind. What ultimately is the result that you need the employee to accomplish? Then consider the skills necessary to accomplish those goals. Input from not only your management team but staff in general can be an enormous help in determining those requirements.

Pallet Control Saves Money

A necessity for warehouses and at a unit cost of $2 to $80 for each pallet, loss and damage of pallets can add up very quickly and adversely affect your bottom line. Whether you purchase pallets or lease them from a company, it is essential to have a method of tracking them.

There are organizations that lease and manage pallets used by your organization. Pallet reconciliation is an important aspect of money management. They control activity with suppliers, haul, maintain, retrieve, dispose, and set up delivery points. In addition to tracking lost pallets and managing the redemption of pallets, Methods include manually counting the pallets, bar coding, radio frequency systems, and transmitter tags.

Some systems can track pallets anywhere in the worlds. Ultimately, this saves your organization an enormous sum of money by reconciling found pallets to invoices in order to maintain accuracy.

Whether you use software specifically designed for pallet management or a pallet management company, the concept is the same. Tracking pallets is an important aspect of maintaining costs. If you are unsure of how to approach this area of your business, then consider hiring a consultant to help you.

What Kind of Pallets Can You Use?

In virtually every country, state, manufacturing, warehouse, and third party logistics company you will find pallets used. There are multitudes of pallets to choose from depending on your needs.

Pallets are made of a variety of materials: each will provide a different level of strength and longevity. For instance:

Wood is the most prevalent and tends to be most affordable. Load capacity is about 2500 pounds and can be used 2 to 15 times before needing to be repaired. Drawbacks include moisture retention, warping, and splintering.

Plastic pallets have a load capacity of 1400 to 4000 pounds and can be used around 250 times. Drawbacks include warping because of weather exposure and cost tends to be on the higher side at $80 per unit.

Corrugated fiberboard carries approximately 1700 to 4000 capacity, is disposable, and runs at $5 to $7 a unit. Unfortunately, it is only good for one trip.

Metal is made from aluminum and stainless steel, can hold upwards of 5000 pounds, and can be used for up to 500 trips. Unfortunately, it is pricy. The price per unit can run as high as $250 per unit.

Prices vary depending on quality, quantity, and whether or not you use on outside source to provide the pallets or you purchase them directly.

Pods Warehouses

Whether for personal use or to meet the needs of business requirements for short or long-term storage, an alternative to the do-it-yourself storage that requires you to move either inventory or other materials via a truck and heavy lifting is the use of pods. An emerging trend is the use of pods, which is a container unit available in a variety of sizes to suite your storage needs.

What’s Nice?

• The pods are dropped off and picked up by the warehouse facility, which alleviates the worry of transportation.
• Although, the pods are stored in a warehouse facility, they are whether resistant
• The climate in the warehouse is controlled by using air conditioners and de-humidification systems
• The warehouses are under strict security and only you have the key to enter your pod
• They are portable, so they can be moved to the location of your choice at your convenience
• Do not pay for more square footage than necessary. Rent only the size pod that you need to accommodate your inventory or materials
• Can hire the warehouse to pack and unpack the pod

Warehouse storage has become much more flexible in the effort to meet the varying needs of the customer. If you are moving, have over stock in inventory, are remodeling, or relocating, there are alternatives to the typical self-storage warehouses of the past.

Team Building

Whether in a corporate office or warehouse environment, essential to any organization’s success is the ability of staff to work together. Essential to this task or opportunity, however you would like to look at it, is a strong leader that can be impartial and show common sense when dealing with employees and team building.

Each individual has their own sets of experiences, values, and personality traits, which influence how they interact with their coworkers and managers. Often if left to their own devices, employees are attracted to like-minded associates making it difficult for a truly integrated department or organization to share the same values concerning the success of the company.

Team building can take many forms, which could include personality assessments and group discussions of the results. This tends to be a great way to gain a good understanding of a coworker’s reactions and motivation. Other forms of team building can include volunteer work for a common cause or just going out to lunch to enjoy time away from the office or facility.

Team building does not have to cost the company a lot of money. Ultimately, any investment whether financially or time is well worth the rewards reflected in improved moral, communication, understanding, warehouse services, and ultimately profitability.

The Use of an Interactive Voice Response System in a Warehouse

Undoubtedly, there is a use for Interactive Voice Response (IVR) in your warehouse distribution center; particularly if you have high call volume and would like to extend the service provided to your customers. An IVR integrates well with Computer Telephony Integration (CTI) systems, which uses caller identification or passwords to extract information from the customer.

IVR allows you to service customers by providing an extension to your call center. An automatic attendant detects your answer via voice or keypad entry thereby processing the pre-recorded voice commands by answering your questions, providing services such as purchases, payments, or directing the customer to the appropriate agent for further service. Responses can be in the form of voice commands, fax, callback, or call center forwarding.

This additional service can be an added benefit to your organization if it is constructed well to provide additional customer service to your client rather than put them in voice mail hell. The system should not be complicated to use, needs to be customer centric, and flexible enough for individuals that have an accent to use. The repercussion of a poorly designed system causes your customers a great deal of frustration, which ultimately results in loss of customer satisfaction and business.

If you are interested in acquiring an IVR or CTI system for your warehouse distribution center, contact various warehouse companies that specialize within your industry and ask for recommendations for vendors, information about customer satisfaction, as well as effectiveness. Research several vendors and consider the industries in which the system provider has provided service in the past.

Warehouse Clothing

The proper clothing is an important consideration for your employees to ensure their safety as well as comfort. The type of clothing required depends on the activities within your warehouse. For instance, if your workers handle food in sub-zero conditions, it is recommended that you provide jackets and bibs that are specifically designed to protect them from cold, harsh environments. If your laborers work in an environment that exposes them to high heat, then it is recommended that you provide him or her with clothing that is flames resistant

It is essential that the clothing supplied meet the American National Standards Institute (ANSI) and International Safety Equipment Association (ISEA) requirements. The variety of clothing includes bibs, jackets, safety colors, gloves, shoes, etc. Consider the following when making your decisions:

Flame resistant clothing coated with a special flame resistant coating should be used for employees that may be burned by electricity, work with oil, or flammable material.

Laborers that are exposed to low temperatures such as freezers should use jackets and bibs that are quilt lined and made with arctic weight nylon.

High visibility clothing such as safety green, yellow, and orange with reflective tape is available for employees that place them in a situation that in which they are not easily visible.

Hand protection is available for any number of uses such as driver gloves. Gloves made of neoprene are specially designed to protect against heat and acid burns. Gloves made from Kevlar or steel thread are excellent cut resistant protection.

You also have a number of choices when it comes to the type of boots needs. For instance, they should be slip resistant, but is toe protection also required?

The above is just a smattering of what you need to think about when considering the proper attire required to protect your employees. Review the requirements through the International Safety Equipment Association to ensure that you are within safety compliance.

Include Key Performance Indicators Along With Financials

Many warehouse and supply chain organizations emphasize the balance sheets and forget about the non-financial aspect of measuring productivity. In order to get a fully encompassing view of your organization, it is recommended that you include non-financial metrics like Key Performance Indicators (KPI). The use of both financial statements and KPIs helps to control performance by measuring any number of indicators within your warehouse or supply chain. It should be targeted, systematic, and have the ability to display the results graphically. One of the most important aspects of using a KPI is to have a benchmark from which to make a comparison. Your numbers will not mean much if you have nothing to compare them to.

To run an effective supply chain, it is recommended that you measure inventory, suppliers, and customer satisfaction. Customer satisfaction metrics include such areas as shipping accuracy, re-orders, customer service response, and overall contentment with service. Inventory metrics can include cycle time, inventory levels, loss from damage, and lead-time. Supplier metrics may include such performance indicators like quality, accuracy of orders, shipping cycle, and defects.

Ultimately, the goal is to create metrics that are as accurate as possible. Better accuracy results in less inventory requirement, shorter inventory to cash turnaround time, and overall better financial performance.

There is no doubt that there is a direct correlation between financial success and the use of metrics to measure both a balance sheet and key performance indicators. It is not necessary to begin with a sophisticated software program if you do not have the financial resources when starting out. Consider using an excel spreadsheet to get started until you can afford to institute a more sophisticated system. The important thing is that you begin measuring performance now.

Grants and Training Can Go Hand In Hand

Eventually every company runs into issues finding qualified employees to work within their company. This could be caused by any number of reasons including lack of skilled workers because of specialization, distance between warehouse and available workforce, severe labor shortage, or skilled labor. In order to keep business competitive, many states offer grants that are flexible in or to meet the employer’s training needs.

Almost every state in the union assists employers for work force training grants. Although, each state has its own eligibility requirements, the opportunities are available to assist you in training your workforce.

For instance:

The state of Alabama offers a grant that covers 50% of the costs of training to eligible employees to receive training information technology.

Idaho offers the Workforce Development Training Fund (WDTF), which provides $2000 per eligible employee for job skills training. The employer receives up to 50% reimbursement for on the job training if the employer agrees to hire and train eligible workers. In this case, eligible works are considered new and reentrants to the workforce.

Wisconsin pays for training up to a maximum benefit of 75% of eligible costs. The Business Employee’s Skill Training Program (BEST), covers employee training that involve business automation, manufacturing, medical devices, biotechnology, and more.

There is also the OSHA employee safety training grant that can pay millions in grants to non-profits through the Susan Harwood Training Grant Program.

There are multitudes of employee training grants that may be able to assist your organization to develop a strong and capable workforce. Why not take advantage of a resource that may ultimately improve your bottom line.

Relocating A Warehouse

Moving a warehouse can be an overwhelming task to say the least. It is recommended that you begin planning a year or more in advance. You need to consider transitioning everything from marketing to packing and everything must be coordinated so that you mitigate time that the warehouse is not in operation and that there is no disruption in service.

Organization is a key element is making a smooth transition. Begin by making a list of everything that must be considered during the move; everything from informing the employees and customers to creating new marketing material.

Communication is probably the most important aspect of relocating to a new facility. Employees should be notified as soon as possible and told why, when, where, and what will be involved in making such a major move. It is important to give your employees a sense of security during a period of upheaval.

Moving inventory will be a considerable portion of your budget and time. Sit down with your management team to determine the amount of inventory that will be moved, how much will fit in a truck load, time to load and unload as well as amount of time to make a round trip. This will assist you to determine how much time is needed to move your inventory. Remember to allow a ten percent buffer in case of delays.

Anticipating cost involves a multitude of calculations and the above is just an inkling of what is involved. If the task is too overwhelming for you or your team, consider hiring a project manager or consultant to organize it for you. A bit of investment could mean a considerable savings in the end.

Dunnage Air Bags

Whether cargo is shipped by rail, truck, air, or ship, a large percentage of damage happens in transit. Unless pallets and boxes are secured properly, the bouncing often results in damaged to the packages and merchandise because of the bouncing and jostling. It is essential to protect your cargo by stabilizing and protecting it using the right items that are installed correctly.

The use of dunnage air bags has proven to be a useful method of caring for cargo by bracing it. Dunnage airbags are constructed of several layers of “Kraft” paper and coextruded polyethylene film. The inside is a plastic air bladder and is fitted with one or two air valves. You have the choice of using paper dunnage, which is disposable, or rubber, which must be carefully deflated, folded, and stored in order to avoid damage.

It is essential to install the air bags properly to both reduce load damage and damage to the bags, especially during transit. It is recommended that you use the correct size to fit the height of the cargo so that the force is distributes along the height of the bag. Do not use two bags together. Fifty percent of the surface area should be in contact with the load. Place and inflate the bag in the middle of the cargo so that it pushes the cargo against the walls of the container, on top, or one side to stabilize the cargo. It is advisable to sandwich the dunnage bags between cardboard to avoid punctures, and then inflate until the loads are held tight against the walls or each other. The restraining force should be one-half of the weight of the cargo.

As a manufacturer or warehouse distribution center it is essential to reduce the exorbitant cost of damage caused to product in transit. Whether you use dunnage bag, wood, or cardboard specifically manufactured for the purpose, do not hope for the best make sure that your cargo is safe from destruction.

Freight Forwarding

Although, there is a great deal of detail required with intrastate distribution, there is much more required when shipping merchandise or freight internationally. In the quest to distribute goods efficiently, you may need to turn to freight forwarding companies. They act as a third party provider that arrange on a variety of levels.

Freight forwarding companies handle the import, export, and transshipment, which include changing modes of transportation several times from ship to road or railway to airline and so forth. International distribution is much more labor intensive and requires specific documentation such as commercial invoicing which is provided by the corporation to customs declaration to export in order to calculate tariffs. as well as bills of lading.

A Freight Forwarding company can typically save you money since they negotiate shipping prices while taking into consideration reliability, swiftness of delivery, and cost when deciding on a service. They also work with corresponding agents or employees from their own company to look after the interest of the customer taking into account risk management, and on time delivery.

Save money and headaches when dealing with international shipping, consider using a freight forwarding company to make the multitude of arrangements for you when dealing with the regulatory issues and demands with international shipping.

What You Need to Know

Demand for your product has grown and you are in the enviable position of having to find a way to distribute your goods quickly, and efficiently throughout the United States; perhaps across the world. Unfortunately, you do not have the resources necessary to create an entirely new subdivision to deal with distribution. The next best solution is to hires a warehouse distribution center that can handle the job for you. Remember to look for what you need and pay only for what you use.

It is a smart idea to hire a warehouse distribution facility that can provide the service consistently. An important consideration is to find an organization that has facilities in multiple locations that will work with your delivery needs. This helps solves a meriad of problems such as mishaps with materials not reaching intended location because of poor communication, caused by the lack of synergy when working with deliveries by multiple companies.

Not only is it necessary to use an organization that can provide you the services you require, but pay only for the services you need. This will allow you to save money by allowing you to mix and match according to your needs.

Consistent and flexible service allows your company to grow and flourish while reducing costs and risk to your organization.

Deterring Theft at Your Warehouse

An area of concern for many warehouse managers is loss due to theft whether from internal problems or externally. Unfortunately, you may not consider the problem until it creeps up to you, because of the sheer shock of the loss that occurred and how it affects your profitability. In terms of theft, there are two ways that it happens from either the people who work within your organization or those that do not.

Loss due to theft costs organizations millions every year and a productive method of handling such issues is to install hidden as well as obvious cameras throughout the facility. Cameras mounted in obvious areas outside the facility are a good deterrent to protect the goods that may be stored outside the warehouse especially if you do not have fencing or live security to watch over the goods.

A method to address the theft issues within your warehouse is to use hidden cameras that will help with both theft issue as well as loss because of workers compensation injuries.
The initial expense may be a bit more than you would like to invest, but consider how that initial investment will save you over the long run in less loss because of theft and more profits in your pocket.

Weight and Invoicing Integrate

Warehouse managers are looking for methods to reduce shipping costs and increase profits by improving method in materials handling and shipping. There are several areas of concern such as negotiating with carriers, load planning, and invoicing correct freight costs to the customer. Having an accurate and reliable systems to simultaneously weight and move freight can reduce damage by decreasing the number of times the item is handled, improves invoicing by allowing you to bill by actual weight shipped rather than estimates.

Many warehouses use equipment that allows them to integrate the task of moving the material with the need to accurately weigh the shipment within 2% of the load while loading or unloading the cargo. The operator enters or scans the product code, lifts and moves the freight while simultaneously weighing the cargo. The data is sent via wireless terminals to the billing system, computed, calculates the information, and automatically produces an invoice.

Additional methods include equipment, which stores, handles, and ships the mat
erial by using scales that are built directly into the storage shelves. This system facilitates the picking and packing by comparing the weight of the finished pallet against the weight of the individual item. If the incorrect weight is detected, then the items are diverted to be reworked in order to maintain accuracy.

By using the appropriate equipment, labor costs and shipping expenditures are reduces while accuracy and profitability increase exponentially.

Reducing the Cost of Damage Within the Warehouse Industry

Every year billions of dollars of warehouse materials is damaged somewhere in between the packing, delivery, or and the retail shelving process. Any number of reasons can cause damage to goods and the only way to determine the cause for the damage is to conduct a thorough warehouse audit to examine every time a product is touched, by whom, and at what location. It is necessary to observe how the product is handled from case to palletizing and ultimately retailer stocking.

Areas of concern:
Packing material should be strong and durable enough that it will not break as you palletize the materials. You may need to change paper to corrugated cardboard in order to maintain the integrity of the packaging during shipping.

The handling of the product should be done with the proper equipment. Improper use or equipment that is used for the wrong application can damage goods. An improperly used forklift will cause damage by crushing or dropping the product.

Proper palletizing should consist of placing product to build strength using proper load configuration and distribution of the weight to reduce voids between boxes. If need be, use stabilizing material to fill in the voids.

The method of handling by the customer is just as important as the process within your own warehouse. Is the pallet being placed in an area with adequate space to accommodate the material without damaging the packaging? Is the customer using correct moving and storage equipment appropriately, or are they misusing equipment?

Observation, communication between customer, vendor, and manufactures, using metrics, and constant analyises is important in reducing damage to products either in the warehouse or in transit. The above is a sampling of the areas of concern. Consider using an unbiased third party in order to assist you to mitigate product damage and ultimately reduce cost of damage.

Supply Chain Forecasting in Manufacturing

Warehousing costs can be an excessive expense to your organization if supply forecasting is significantly over estimated, because it can lead to excessive expenditure in warehousing inventory, labor, and wasted material. On the other hand, if demand forecasting is significantly underestimated, you risk the possibility of lack of inventory, which leads to lost sales and ultimately lost customers, because they will go elsewhere to secure what is needed. Poor forecasting include shortcomings in such things as over or under stock of a specific apparel size.
Maintaining accurate inventory is necessary in order to prepare for demand. You must take into account respond to other retailer’s actions, and consider your own competitive market share in relations to your own organization.

Proper allocation of stock entails estimating the quantity of goods or service that the public will demand. By using both scientific and non, such as historical data, test market information, along with quantitative methods, demand may be closely determined. In order to calculate demand-forecasting, warehouse managers use the average of percentage errors, which is the equal to the deviation of actual demand from forecasted demand. If the deviation is above 100%, then the forecast in inaccurate.

Forecasting is a combination of art and science and requires a keen sense of understanding of the market, economy, historical data, statistical analyses, and the law of diminishing returns. Excellent skills in such areas will help in the strategic planning of the organizaiton.

The Importance of Safety Stock in a Manufacturing Environment

Improve your fill rate, and reduce lead-time on inventory on hand at all times. You need to maintain stock levels, so that it does not fall below a specific amount. An important aspect of inventory management is having the optimal amount of safety stock available at all times. The right balance is essential, because too much will cost the company money in carrying cost, potential breakage, or expiration of non-durable goods. The right balance will allow you to meet unexpected increases in sales demand or cover a shortage caused by labor or material shortcomings.

An important aspect of maintaining accurate inventory control is to calculate safety stock as accurately as possible, so you can optimize stock levels all the while mitigating the waste of money on an inventory glut. In order to make an informed decision on calculating the amount of safety stock, one must consider demand for the product, lead-time for raw materials, and shipping, even potential delays due to inclement weather. The more accurate the forecast, the less safety stock is required thus saving your company lost revenue due to holding costs or lack of goods to market thus increasing customer turnover.

Your Enterprise Resource Planning system will help you immensely to calculate inventory required and automatic ordering once the inventory dips below a certain value.