As more warehouses and distribution centers turn to intelligent, high-tech solutions, it is important to take advantage of technology to optimize the efficiency and ultimately increase the revenue of your business.
Smart technology now stretches into virtually every aspect of our lives, so it should come as no surprise that distribution centers worldwide are finding unique ways to leverage these smart technologies to increase efficiencies, reduce operating costs, and improve safety. A closer look at today’s available technology shows just how intelligent the tools for the materials handling, logistics, and supply chain industry have become and the transformative impact they can have on operations. Innovations such as voice tasking, warehouse robotics technology, microprocessors, and the talking lift truck are fundamentally changing the way business is being done. Those who stay on top of these innovations gain an invaluable lead on the competition.
One such company realizing significant benefit from employing new technologies is Genco Supply Chain Solutions. Looking to improve routing and slot optimization while simplifying the receiving and retrieving processes at their 200,000-square-foot facility, Genco started using the Total Trax Sky-Trax Solution. TotalTrax Smart Truck Solutions turns traditional material handling vehicles into smart trucks. Image processing technology transmits images to a centralized monitoring system, giving supervisors real-time access to the warehouse. Genco’s results after implementation: a 12% increase in facility throughput, 99.9% inventory accuracy, a 20% increase equipment utilization, and a reduction of more than 50% in training time.
“With gained visibility to inventory and vehicle movement, we are now able to analyze each operator’s performance, including the amount of idle time and time spent with no load,” Cary Cameron, Genco’s vice president of strategic technologies, said in a press release. “The data and reporting Sky-Trax provides allows us to analyze the root cause [using Lean Six Sigma] and measure processes we’ve never been able to see before.”
Value is delivered in increased accountability and visibility as supervisors can make critical dispatching decisions in real-time and review historical data for improving operations. In numbers, the use of smart trucks for automatic inventory tracking routinely translates into 30% higher productivity. Drivers can focus on what they do best: driving. Customers can also count on substantial labor savings and improved OSHA safety compliance as a result of the uninterrupted monitoring of the warehouse.
As more warehouses and distribution centers turn to intelligent, high-tech solutions, it is important to take advantage of technology to optimize the efficiency and ultimately increase the revenue of your business. Keeping up with this kind of innovation can help any organization achieve better business results. Even more importantly, you should make sure your organization uses its smart system for a breadth of capabilities and applications to ensure getting the most out of it.
Is your business using smart technologies? If so, which ones have had the biggest impact?
Growing in concert with consumer demand, distribution centers are getting bigger. In fact, a 2013 Motorola Warehouse Vision Survey reported that a full thirty-eight percent of respondents would be increasing the size of their warehouses and distribution centers over the next five years. And while there are certainly potential benefits, there are also plenty of potential problems. With good planning, though, organizations can successfully navigate around the pitfalls of distribution center growth.
Here’s how to achieve success when growing the size of your distribution center.
Streamline operations and processes
Increasing the square footage of your distribution center requires extensive strategy pre-planning. This means taking stock of your entire logistics and distribution process and strategically thinking about how these processes can be made more efficient. Areas where many companies can increase efficiencies include: decreasing reliance on paper, cross-docking, incorporating multi-modal wireless solutions, and revamping the pick strategy.
Optimize communication across departments
Communication is essential when growing your distribution center. Communicating across departments will enable your company to be able to effectively plan for both current capacity requirements as well as capacity requirements that are forecasted in the near-, mid-, and long-term. Building a larger distribution center only to outgrow it five years later is a costly mistake. Furthermore, communication across departments will allow for the right-sizing of both equipment and labor.
Be flexible
Allowing for flexibility is a key factor of successful growth. A large distribution center that can process a limited number of SKUs is, well, limited. A distribution center that is designed to be able to process a wide variety of goods and SKUs can reduce operating costs and enable your company to be more nimble. When designing your distribution center, keep flexibility at the forefront.
Invest and utilize technology
A larger distribution center requires more automation and more technology than a smaller distribution center. Similarly, a larger distribution benefits from mobile solutions. As more specific and sophisticated technology emerges, implementing smart technologies can aid in your efforts to achieve optimization of communications and streamline your operations more efficiently.
When the square footage of your distribution center grows, it is important to remember that you are dealing with a different beast. It’s one that requires extra careful thought. Taking the time to consider potential problems and preparing a solid plan of implementation before you begin will increase your odds of successful growth.
According to the 2013 CareerBuilder Candidate Behavior Study, job seekers looking for a position with the manufacturing, transportation, and warehousing industries are using the internet and social media not only to look for jobs, but also to research companies within these industries.
Candidates use the internet and social media throughout their job search
The CareerBuilder study looked at the behavior of candidates throughout the four phases of their job search (orientation, consideration, action, and engagement) and found that the internet and social media were used throughout each of the phases. (See Figure 1 for a definition of each of the four phases.)
Job seekers in the orientation and consideration phases have not yet applied for a job at your company. Instead they are assessing the market, learning about an industry, and learning about companies within the industry. These stages are very much knowledge seeking phases for the candidate. Companies who are positioned right can attract great talent during these phases. However, companies who do not have a strong online presence and who do not participate in social media will not catch the eye of job seekers. Think of it as speed dating – you only have a short period of time to make an impression. According to the Neilson Norman Group you have 10 to 20 seconds to make that great impression. If you don’t make a great impression during those few seconds the user will navigate away from your website. Therefore you need to make sure that your website is visually engaging, easy to navigate, and contains quality and informative content.
When a candidate reaches the action stage they not only apply to jobs, they also conduct more in-depth research about a company, and form opinions based on the application experience. Candidates are not afraid to share their experience with the application process. Fifty percent of candidates share bad experiences with others and 64 percent share positive experiences.
In the engagement stage candidates interact with employers, interview for positions, and consider offers. Ninety-one percent of candidates believe employment brand plays a role in their decision whether or not to apply – therefore it is at this stage where your company’s online presence and participation in social media pays off.
How do candidates looking for a position within the manufacturing, transportation, and warehousing industries approach their job search? Let’s look.
Manufacturing industry
As shown in Figure 2, within the orientation stage, 85 percent of candidates looking for a job within the manufacturing industry turned to Google and 75 used a job board. In the consideration stage 83 percent used a company’s career site and 65 percent used social media to learn more about the company.
In the action stage 67 percent of candidates reported that they conducted additional research on an employer. In this stage only 14 percent of candidates reported employers in the manufacturing industry to be responsive.
Finally, looking at the final stage of the candidate’s journey, 67 percent reported that they felt the employer brand to be important.
Figure 2: The four phases of the job search; manufacturing industry
Figure 3 shows that within the orientation stage 86 percent of candidates looking for a job within the transportation and warehousing industries turned to Google and 71 percent used a job board. In the consideration stage 87 percent used a company’s career site and 64 percent used social media to learn more about the company.
In the action stage 65 percent of candidates reported that they conducted additional research on an employer. In this stage only 15 percent of candidates reported employers to be responsive.
In the engagement phase, 75 percent of candidates reported that they felt the employer brand to be important.
Figure 3: The four phases of the job search; manufacturing industry
Candidates looking for jobs within the manufacturing, transportation, and warehousing industries are using the internet and social media. They are researching these industries and researching companies within these industries. They are forming opinions, acting on these opinions, and sharing their opinions with others.
If the manufacturing, transportation, and warehousing industries want to attract great talent and retain their interest throughout a candidate’s job search they need to invest in their online presence and become active in social media.
