DJ Products, Inc.

For logistics providers competing in a tight economy, process automation is an essential strategy. A MarketInsight study just released by Hubspan, Inc. surveyed more than 200 North American logistics companies with annual revenue between $30 million and $10 billion. Process automation to streamline shared processes, achieve operational efficiency and improve collaboration between customers, carriers and distributors were identified as the most critical challenges facing the logistics industry today.

“The logistics industry recorded strong growth over the past decade due to globalization and an increased demand for imported goods,” said Robert Pease, Vice President of marketing for Hubspan. “However, the industry shifted in early 2008 due to a slowing economy, rising fuel costs and a shortage of qualified personnel. This shift drives the need for logistics companies to apply efficiencies that automate processes and streamline operations to overcome current economic hurdles.”

Incompatible systems and difficulties in integrating systems were cited as the greatest challenge by a majority of survey respondents. “In an industry driven by efficiency, it is surprising that so few logistics providers are able to resolve core integration issues that impact on-time performance, process automation and customer service,” Pease said. “Increasing process automation and system compatibility illustrate two key opportunities for logistics providers looking to outperform the competition and thrive in today’s tough economic environment.”

Utilizing ergonomically designed powered carts and tugs to replace the manual transport of materials and products is one way logistics companies can increase automation and improve production efficiency. With the logistics industry facing a shortage of workers, ergonomic material handling solutions allow each worker to efficiently accomplish a greater workload while dramatically decreasing potential risk of injury. Replacing expensive, high-maintenance, fuel-guzzling forklifts and gas/diesel-powered equipment, with less costly, more maneuverable, electric-powered carts and tugs can result in a considerable savings in high fuel costs. These smaller, more maneuverable carts also provide more versatile solutions to material handling problems. For more information on ergonomic solutions to material handling problems, visit the DJ Products website.

America’s workforce is becoming increasingly multicultural. At this year’s MHEDA convention, keynote speaker Steven Little predicted that changing demographics will redefine material handling workers and change the way we do business. As Baby Boomers retire and the U.S. workforce shrinks, industry will need to turn increasingly to foreign and immigrant workers. Within a decade, Little said, Spanish will be the primary language spoken in 20% of U.S. homes. Overcoming the language and cultural barriers presented by a multicultural workforce is expected to present a significant challenge for many industries, including material handling, warehousing and logistics operations.

As they have since the founding of America, immigrants bring with them a wealth of diverse languages, cultural traditions and customs. However, communication, productivity, and worker morale can suffer when differences are not addressed. This problem is already being experienced by businesses in the West and Southwest who employ Hispanic workers. Hispanics are one of the fastest-growing groups in the U.S. workforce. Unusually high injury rates and on-the-job deaths among foreign-born Hispanic workers prompted business owners to ask OSHA for help. In response OSHA is starting to offer classes on the social hierarchy of Latino and Asian cultures, both of which are more highly structured and rigid than American culture.

Accommodating the language, customs and social structure of foreign workers is necessary if immigrant workers are to be effectively integrated into the U.S. workforce. Material handling, logistics and warehousing firms that are proactive in accommodating language and cultural differences into their workplace routine will be able to profit from the increasing diversity of America’s workforce.

Warehousing and distribution centers are being forced to perform more quickly than ever before and meet a growing list of unique customer requirements. Automation is the key to success.

“To get more throughput while decreasing cycle times, more facilities are turning to the strategic use of automation for picking, conveying, storage and sortation,” wrote Modern Materials Handling editor Bob Trebilcock in a May 2006 Modern Materials Handling article on warehousing systems.

Over the past decade, automated systems have moved from simple stock locator systems to islands of single-task automation to the unified, integrated systems being installed today. Automation is speeding up every aspect of warehousing, including inventory control, receiving, material movement, picking, packing and shipping. Automation allows greater volumes to be handled in shorter timeframes. Today, automation allows customization of an end-user’s needs to be accomplished with amazing speed, accuracy and efficiency.

Engineering a customer’s requirements “into the workflow” and performing them as a matter of course, is the most efficient and cost-effective way to meet specific customer requirements, Trebilcock writes in a July 2008 Modern Materials Handling article. Some examples of using automation to meet unique customer requirements:

• Pick-to-light solutions ensure order-picking accuracy and maintain throughput.
• Synchronizing material delivery to the production line in the same sequence as component assembly and packing saves time on the order assembly line.
• Automatic print and apply processes save labor in applying shipping labels and guarantee accurate shipments.

Anything you can do to automate your warehousing or distribution operation will improve speed and accuracy for your customers and allow you to handle a higher volume while still meeting unique customer requirements.