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.