Management Consultants Specializing in the Supply/Demand Chain
New York  *  Boston  *  Helsingborg  *  Helsinki  *  Lausanne  *  Shanghai  *  Stockholm      
Management Consultants Specializing in the Supply/Demand Chain            Site Map     


   Establish Home > Warehouses struggle to keep up as the economy changes





[Click here for an overview of our Warehouse/Distribution Center consulting services]
 

Warehouses struggle to keep up as the economy changes.

As we start 2009, the most common problems reported by warehouse managers include producing results with a reduced workforce, coping with a non-optimal physical layout and structure, maintaining the measurements needed, and just plain management of a highly variable workload.

With volumes and demands fluctuating both upward and downward, warehouses now must be properly staffed, organized and automated to handle today's activities - particularly the ever increasing requirements for Value Added Services. And while increasing headcount is never a popular subject, there are times when it makes sense to staff properly and avoid late shipments and errors due to inadequate work force levels and fatigue.

The physical layouts tolerated during the early years of this decade in many warehouses are just not adequate for the current volumes and special activities required of most operations. Many companies put off making the changes in racking, aisles, staging areas, scales, wrapping equipment, and packing areas that needed to be made and "made do" with what they had. Now as volumes increase, it's time to get that warehouse laid out properly to be able to handle the volume and the labeling, re-working, tagging, counting, kitting, display assembly, and pallet configuration that today's customers require.

Having the right metrics for optimum warehouse operation is key to being able to justify the increases in headcount and the changes in layout that may be needed. Most operations track service performance (orders, lines, errors, cases, and pallets). But do you have metrics that cover productivity performance and capacity utilization? These measurements will help identify the need for changes and the potential savings in the operation.

For some companies it's now time to identify the need for a new warehouse. Not only because of the potential improvements in operating costs of having a proper warehouse, or because the lease is finally coming to an end and it's time to lock in a good rate and a building capable of handling the two- to five-year forecast, but also because one of those product lines or geographic market areas needs a boost in service to enable the company to grab that increase in market share so needed to reverse the downward trend.

As we move into the later half of this decade (that's right, its downhill from here on) it may be time to re-evaluate the ability of the company's warehouse facilities and operations to make sure they are ready to support the business strategies.

Need more information?
[Click here] for an overview of our warehouse/distribution center consulting services.

If you would like to speak with one of our representatives right now call 201-944-5580 or [click here] to send us a note.



Search Establish, Inc.


  Davis Logistics Cost and Service  
 
Find out about current logistics cost and service trends in North America.

[Download our 2009 Davis Logistics Cost and Service Presentation]

Participate online in the 2010 Davis Logistics Cost and Service

  

  Most Recent Mailing  
 


Management Consultants Specializing in the Supply/Demand Chain



We help make our clients successful.
New York · Boston · Helsingborg · Helsinki · Lusanne · Shanghai · Stockholm
201-944-5580    www.establishinc.com
  

  Case Study  
 
  Find out how Establish helped a mens apparel importer
relocate their master distribution center and implement a new computer system.

[More Case Studies]


 
 
Copyright © 2010, Establish, Inc.