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.
Saturday, October 31, 2009
Wednesday, October 28, 2009
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.
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.
Friday, October 23, 2009
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.
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.
Wednesday, October 21, 2009
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.
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.
Thursday, October 15, 2009
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
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
Wednesday, October 14, 2009
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.
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.
Saturday, October 10, 2009
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.
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.
Friday, October 9, 2009
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.
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.
Thursday, October 1, 2009
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.
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.
Subscribe to:
Posts (Atom)
