Business Tips Archives

Part 4: Why Businesses Fail

Financial experts seem to be teetering on the verge of labeling the country’s current economic situation a recession. It’s a label the government seems loathe to use, believing it will wreak further havoc on the stock market and send the economy spiraling down even further. No matter what you call it, things are difficult and it looks like they’re going to stay that way for a while. The economy is slow, credit is tight, fuel is high and bankruptcies are up. For many companies, the combination has delivered a knockout punch and they’re down for the count.

Last week we started a series on Why Businesses Fail (see our July 14-18 posts). We figure it’s better to learn from the mistakes of others than repeat them yourselves. This week we continue our list of the most likely reasons businesses fail:

Inappropriate inventory. You can’t sell what customers don’t want. Too much or the wrong inventory causes cash flow problems, wastes sales time and drains profits. By constantly tracking individual inventory items, you can make adjustments and effectively manage product flow on a weekly and monthly basis. Don’t make the mistake of relying strictly on accounting summaries to track inventory. Accounting tracks inventory by dollars, lumping moving and non-moving inventory into an average. To adequately control inventory, you need to track the actual physical items.
Excessive capital investments. Americans seem to equate success with things. Bigger cars, bigger houses, the latest gadgetry. In business there can be a tendency to buy newer, bigger, more expensive tools and equipment as a mark of success. But success in business is really based on the quality of the product or service you produce. That’s what drives sales and repeat business. Equipment purchases should relate to your ability to improve or maintain the quality of your product. Certainly, you need to update equipment as technology changes to be competitive. And often the expense of new technology can be recouped in short order by savings in energy, floor space or worker health and safety. But capital equipment purchases should always be evaluated for their ability to enhance the production of a quality product.

If you’re looking for a cost-saving solution for your capital equipment investment, turn to the material handling experts at DJ Products. At DJ Products we manufacture ergonomically designed electric carts and motorized cart pushers for business, industry and service providers like hospitals. Our products are smaller and more maneuverable than traditional powered equipment like fork trucks, walkies and riding tugs, yet are capable of moving the same sized loads with ease. A smart capital investment, our products are less costly than purchasing traditional powered equipment. Because our carts, tugs and equipment movers are ergonomically designed, you’ll also realize an attractive savings in worker health and safety costs, including medical bills, insurance payments, workers’ compensation and lost man-hours. Visit the DJ Products website to check out our full line of ergonomically designed electric and motorized carts.

To be continued

Property Managers: Recycling – Does It Still Pay?

When given an opportunity to reduce their carbon footprint, reduce pollution, and help the environment, people are eager to participate. For individuals, the practice does not have to be the most cost-effective or convenient. However, with innovation in biodegradable packaging and goods, the amount of recycling is down from 35 percent to 33 percent according to the EPA, and many property managers are reevaluating their policies for Waste Removal in Condo’s and Hi-rise apartment complexes.

Recycling is not always profitable

Waste Management’s CEO, David Steiner, told CNBC’s Squawk Box that low recycling commodity prices have put their recycling division into a loss. He used the example of cardboard (the most recycled commodity): WM previously sold the cardboard for $100 per ton. They give their customers 75 percent; WM keeps 25 percent. It cost WM $20 per ton for processing, WM makes about $5 profit from each ton of recycled cardboard. When the prices drop, WM is still obligated to pay 75 percent of the sales price to their customers. The lower prices left WM earning just $12.50 per ton for themselves, yet still having to pay the $20 per ton for processing. This puts them at a loss for their recycling efforts.

Waste Removal in Condo’s and Hi-rise apartment complexes

Property managers can reduce their waste removal cost by using efficient battery-powered dumpster movers and bin pullers. This reduces labor cost and the risks of worker injuries from overexertion, strains, or slipping. The 36-volt WasteCaddy make it easy for one person to maneuver up to 10,000 lbs. Call 800.686.2651 to discuss your waste removal needs with our knowledgeable Sales Engineers.

Weichert Launches New Property Management Company

Known for providing top quality customer service to home buyers and sellers, the Weichert Family of Companies announced recently that they will consolidate their property management businesses into one entity called Aureus Property Management.

The gold standard

Headquartered in Morris Plains, New Jersey where it was founded in 1969, Weichert Realtors has grown to be a leader in residential and commercial real estate transactions by going beyond “full service.” They make it clear with the company name that they want to be the gold standard for residential and commercial property management. Aureus was the name of the gold coins that were the main monetary unit of ancient Rome.

Aureus offers a wide range of property management services for property owners and renters. The company helps relocating employees and long term tenants with their housing needs. Services for property owners include marketing, screening tenants, rent collection and maintenance services.

Property manager equipment

For the best waste container and dumpster movers, check out the DJ Products line of efficient, battery powered pullers and waste caddy haulers. Regardless of your property manager equipment needs, we have the electric or motorized cart tug solutions to help your company operate efficiently and reduce the risk of injury to your employees.

According to Greater Media Newspapers, Mike Williams will serve as president of Aureus. Williams was previously president of Penn Property Management and has 15 years of experience in the industry.

At DJ Products, we also strive for gold standard customer service. For information about waste bin movers and other motorized systems, call one of our sales engineers and follow our blog for property manager tips.

Hazards in the Workplace

Many things located in your workplace; things that you use every single day without a second though, things as common as pallets, ladders, hand trucks can all prove to be dangerous if not used properly. Many of the pieces of equipment that you use on a regular basis, the things that you come in contact with so often that you take their necessity for granted, can pose a serious health risk to you and others if they aren’t in good condition or if they aren’t properly used.

Regular inspections of all equipment should be made to ensure that everything is in good working condition, regular maintenance should be performed on any equipment that contains moving parts and you should ensure that all of your employees are educated on the proper use of the equipment.

The equipment that you use everyday needs to be: properly used by your employees, in good working condition and capable of handling the work that you are using it for. Many workplace injuries can be avoided simply by the use of the right equipment for the task at hand. The electric carts and lifts offered by DJ Products are easy to operate – your employees can be trained quickly to operate these lifts properly, safely and efficiently. They are quiet – the rest of your employees won’t be distracted by excessive noise while DJ Product’s equipment is operating. They are highly efficient and have long battery life – your employees won’t be stuck with an unfinished load of material in the middle of your warehouse due to the fact that their cart died. All of these attributes will make your warehouse more efficient and much safer for all of your employees.

Safety should be a prime concern when you work in material handling – and safety starts with the right equipment for the job and properly trained employees. You can make your operation as safe as possible and dramatically increase your company’s efficiency by using the right equipment for the job.

Downsizing? Can Your Equipment Handle the Move?

Unfortunately many material handling companies and distribution centers are still having trouble making ends meet and this has led to a trend of companies moving into smaller builds to cut expenses. If your company has a lease coming up for renewal and you are considering the possibility of cutting overhead by moving into a smaller building, ask yourself this –is your equipment reliable enough to conquer the work involved in a move?

If you have issues with outdated material handling equipment that gives you fits because of regular maintenance issues, odds are that your move will be a disaster. Consider the fact that moving your entire operation will be a labor intensive affair unlike any other. Moving isn’t just high volume – it’s all volume, you need to get everything: racks, pallets, desks and every last piece of product moved as quickly as possible to the new operation to avoid missed sales and risk being labeled unreliable. Make no mistake about it – moving is not a job to perform with unreliable equipment.

That’s not all you have to consider either – is there adequate room in your new facility to merit the big, bulky equipment that you are currently running? If there isn’t than upgrading to smaller, safer and more efficient powered carts like those offered by DJ Products is a very simple decision – just be sure to implement it prior to moving.

You won’t be able to ship or receive product during your move, so it’s absolutely integral to your future success to get the move completed as quickly and efficiently as possible so you can open for business again. You don’t need any hitches thrown into the process by having a piece of equipment fail at the wrong time. Upgrading to the best and most reliable material handling equipment prior to the move will ensure that you get into your new facility with as few headaches as possible and that you can resume regular businesses soon as possible upon getting settled in your new building.

Contractor Versus Employee Do You Know the Difference?

One of the most important warehouse management tips for any business is knowing and understanding the difference between an employee and a contractor. Misclassification for businesses can result in larger tax bills or penalties for not paying employment taxes or not filing the correct tax forms. Conversely, workers will avoid higher tax bills and lost benefits if they file tax papers using the proper status designation.

Know the Difference

The basics between an employee and a contractor are:

An employee is instructed on how to do a job correctly and is controlled in the means to do so. A contractor is specifically told what needs to be done, but they do it on their own volition.

An employee is trained to do a job correctly, while a contractor is given the freedom to get a job done the way they see fit.

An employee is paid a specific wage no matter what their duties are. A contractor gives the business a specific price or an estimate, that is agreed upon by both parties, before any job is done.

What it All Means

Essentially, an employee is hired-on by the business and conforms to their company creed, goes through any training provided, and they are then expected to perform a work function using the guidelines set forth by the company.

A contractor gets hired-on at a negotiated wage for a specific job, that they will complete using their own experience and their own guidelines, as long as it conforms to safety standards and regulations.

Stay informed with more warehouse management tips, by checking out our blog at DJ Products, Inc.

Always be Prepared

The Occupational Safety and Health Administration, also known simply as OSHA, is responsible for setting and enforcing the standards of safety in the workplace. The main goal of OSHA is to reduce on the job injuries and fatalities by assuring that workers are performing their jobs in the safest environments possible. Since it’s inception at the end of 1970, OSHA has dramatically reduced the incidents of accidents in the workplace and they continue to inspect facilities and enforce their policies in an effort to make working people even safer.

Between the federal and state run divisions of OSHA, more than 100,000 facilities are inspected each year and those not meeting the standards could receive heavy fines depending upon their infractions. The number one violation cited by OSHA has to do with forklift operation. This should serve as a warning to all warehouse and distribution environments that if they are operating outdated and unreliable equipment or if they haven’t properly trained their employees on correct usage procedures of equipment that they could suffer citations and heavy fines from OSHA.

There is much more at stake though than a fine, operating your facility with under trained employees or old and unreliable equipment could make your facility run poorly, inefficiently and it can put the health of your employees in jeopardy. In order to have the safest facility possible you need to be running equipment that was designed for the tasks that your employees perform and you need to properly train your workers to operate that equipment.

Electric lifts and carts from DJ Products are designed with safety and performance in mind – they are easy to operate, ergonomically designed and can last for an entire shift on a single charge. Properly using the right equipment is the first step to a safer, more effective and more efficient workplace – and it will eliminate the most cited infraction of the standards set by OSHA and keep you one step closer to compliance.

Material Handling Solutions for Big Box Stores

With the current state of the economy, everyone is trying to do whatever they can in order to save some money. That has many consumers buying in bulk at big box/outlet stores in an effort to spread their money out just a little bit more.

Outlet stores operate like a cross between a warehouse and a retail establishment, which poses some differences and potential problems with actually getting the material from receiving to the sales floor where customers have the opportunity to purchase.

It’s absolutely crucial for these types of environments to have safe and reliable equipment in order to meet the customer’s needs. The employees need to be able to move large quantities of product literally among the customer base during business hours, so safety is a huge concern. No outlet store can operate successfully with loud and difficult to operate equipment – all material handling equipment needs to be easy to operate and not overly disruptive to the consumer experience.

Once the safety of the employees and customers has been taken care of, reliability is the second biggest concern. Even the slightest failure of material handling equipment in a big outlet store could spell disaster as much of the material moves directly from receiving to the sales floor in bulk loads. If the equipment is not functioning for even a short period of time, there could be dozens and dozens of lost sales and potentially lost customers.

Properly trained, reliable employees and reliable equipment are two of the biggest keys to the success of big box and outlet stores. Reliable equipment ensures that the material hits the sales floor in a timely manner and is available for sale when the customers are looking for it.

Downsizing without Alienating Customers

In this economy, where it’s been exceedingly tough to generate more income due to the fact that fewer individuals and businesses are spending quite as freely as they were once capable, reducing overhead has been the easiest way for warehousing and logistics companies to maintain profitability. Usually the two largest areas of expense lay in employees and in rent, and since it’s impossible to run a material handling business without employees, many companies are doing what they can to reduce the amount of money they spend per month on rent.

The biggest problem with shrinking your operating space is the risk of not being able to fully serve your customers – the only way reducing overhead works to maintain profitability is if it doesn’t cause the loss of some of your sales. This means that a warehousing or distribution company needs to carry as much inventory and maintain the very same fluidity of operation, but they need to do so in a smaller space.

Though this may not sound very realistic, with the right employees and the right equipment it is very possible. Lifts and carts from DJ Products are consistently reliable and easy to maneuver in even the tightest of spaces. These quiet and ergonomic carts are among the safest in the business for warehousing employees to operate and they allow just one user to move a multitude of smaller items or a few heavy items without enlisting anyone’s help.

A few well trained employees who have access to the best material handling equipment can perform a task much more efficiently than a full crew trying to operate outdated equipment that could be prone to failure. When an incoming shipment can be received and appropriately stationed to go into stock or to go out for an order, then either put away or shipped more quickly and efficiently – a warehouse is able to successfully operate in a potentially much smaller environment.

Preparation Can Aid in Overcoming Unforeseen Obstacles

There are a number of things, out of your control, that can hamper your ability to get shipments out to your customers in a timely manner. Any time you are bringing in products from a location that isn’t local, you can become the victim of shipping delays that can affect how quickly you are able to fulfill customer orders; and any time you are in need of an out of stock or made to order item, production delays can most certainly affect the prospected arrival date of materials.

Many of your customers may be understanding and not overly critical of you if the delays don’t impact their business too greatly, but others are only concerned with getting their order as quickly as possibly and don’t want to hear excuses of manufacturer delay.

Though your hands might be tied when it comes to manufacturer delays, you can help to offset these undesirable instances by being as prepared and efficient as possible in your own operations. Properly trained and motivated employees who operate in a safe and organized environment with reliable equipment can turn around freight from receipt to shipment much more quickly and much more accurately than employees who work in a cluttered environment with outdated equipment that could be prone to breakdown.

Lifts and carts from DJ Products can handle a heavy workload for a full eight hour shift on a single charge and they are designed with the employee’s safety in mind. All equipment from DJ Products is ergonomically designed to dramatically cut down on work related injuries and these lifts and carts make it easy for a single person to handle loads of material that would have required two people working with a manual cart.

You can’t control what happens outside of your facility, but by being as efficient and prepared as possible you can minimize the potential damaged caused by delays with quick and accurate actions within your facility.