Tag: Business Tips

U.S. Manufacturers Turn to ‘Insourcing’ to Save Money

Insourcing is the new buzzword in U.S. manufacturing circles. U.S. economic woes are causing many manufacturers to replace outsourcing with insourcing, an unexpected boon for American workers. The declining value of the dollar against foreign currencies, skyrocketing transportation costs caused by high fuel prices, and decreasing export demand resulting from the global economic downturn are making it more cost efficient for U.S. manufacturers to produce their products at home.

The same economic forces that sent U.S. jobs overseas are now bringing them home. Manufacturing costs in Alabama are currently running 3% below those in China, causing companies like Exxel Outdoors, Inc., which makes sleeping bags for Wal-Mart and other customers, to execute an “about face” on its production priorities. Since the Wall Street tumble, the company has hired more workers, added new equipment and beefed-up production at its Haleyville, Alabama plant, while cutting production at a joint venture in Shanghai. In 2007, 60% of Exxel’s bags were made in Shanghai. This year, the company will make more product at home than abroad and expects to produce 90% of their product at their Alabama facility by 2010.

Exxel founder and CEO Harry Kazazian is predicting a 20% increase in company revenue this year to $42 million. He credits insourcing as a major factor in his company’s success during a tight economy. Since 2005, he has seen the yuan appreciate 17% against the dollar, pushing up Chinese wages, material costs and freight costs. Kazazian says moving production from Shanghai back to Exxel’s Alabama plant just made financial sense.

“Labor is China’s advantage and our weakest link,” he said. “But they can’t compete with me on my just-in-time” production cycle. Exxel can deliver a sleeping bag from its Alabama facility within three days where shipping from China can take two months.

According to government statistics, U.S. manufacturing is contracting at the fastest rate since 2001, the last time America dipped into a recession. As countries around the globe struggle with the growing financial crisis, there has been a marked decrease in export demand. Without demand for the prodigious output that originally spurred outsourcing over the last decade, producing goods in the U.S. is becoming increasingly cost efficient. Smart companies are re-evaluating their outsourcing policies and making the switch to insourcing.

Speed is Crucial, but Not At the Cost of Safety

Your business depends on your employees’ ability to receive and then distribute your product to your customers.  The quicker and more accurately this can be done, the better – unless of course it puts those valuable employees at an increased risk of injury.

In order for your warehouse or distribution center to operate as smoothly and efficiently as possible, your equipment needs to be just as safe as it is fast or you actually run the risk of slowing the order filling process while you deal with the circumstances surrounding the injury.  Losing one of your valued employees to injury can seriously hamper your efforts even if you are a reasonable large company – in a very small environment where each person is critical to operations, that loss of one person can be crippling.

Forklifts, reach trucks and electric jacks all come with a very long list of warnings because material handling can be a very dangerous job if safety guidelines aren’t properly followed.  Employees are required to travel reasonably long distances with loads of product that often weigh thousands of pounds – attempting this on a machine that isn’t designed for safety can lead to very serious injuries or even death.

The lifts and carts from DJ Products are designed to be the safest material handling equipment that your employees can use.  Built in design features ensure that every employee, regardless of height or size can move and lift material in such a way that any chance of injury is dramatically decreased when compared to manual material handling

It just so happens that the safest material handling equipment available also happens to be among the most efficient.  DJ Products equipment is capable of transporting heavy loads quickly, quietly and safely regardless of the distance between the loading dock and the storage rack – and you’ll be able to use your electric cart for a full eight hour shift on a single charge, so there is no need to worry about equipment failure.  Remember that the fastest equipment isn’t always the most efficient, and when it comes to fulfilling orders and keeping your business competitive efficiency trumps speed every time.

Freight Solutions for Small and Medium Sized Warehouses

A forklift is a great asset for moving palletized freight or heavy loads from point a to point b in your facility, but not every plant or warehouse that handles heavy loads has the storage capacity or room to maneuver for a forklift to be a viable option.  In many of these establishments, employees are manually handling these heavy loads and workers are risking injury every single day in order to perform their job.

You don’t need extra wide aisles in order to operate a powered machine that can move heavy equipment or loads from one end of your warehouse to the other; you can get the same power delivered by a full sized fork truck in the smaller and easier to maneuver CartCaddy4SC powered hand truck from DJ Products.

The CartCaddy4SC allows workers to quickly, safely and easily handle loads up 4,500 pounds in situations where a full sized forklift would be too big a piece of equipment.  The CartCaddy4SC can also be an incredible compliment to a full sized forklift in high volume warehouses that require multiple large loads to be handled at the same time but that don’t have the budget, need or space to merit having two forklifts on site.

Just like all of the material handling equipment from DJ Products, this powered hand truck is built with both functionality and safety in mind.  This piece of equipment is easy to use, quiet, ergonomically designed and can run for a full eight hour shift with regular use on a single charge.

Your business can operate much more smoothly and safely with the proper equipment for the job and if you need heavy loads moved in tight quarters or need to safely get heavy equipment or stock from one place to another while your forklift is in use elsewhere – your business could certainly benefit from having a powered hand truck on site.

Weighing the Options

Functional equipment operated by quality employees is pretty much the lifeblood of the material handling industry.  Unfortunately, with the state of the economy over the course of the last couple years, many warehouses and distribution centers are operating with outdated and broken down equipment that is hampering their employee’s productivity and putting them at risk of injury. Some owners feel that equipment upgrades simply aren’t in the budget, but at the same time they constantly have to pay for costly repairs on the machines that they are using and losing time and money when equipment is down.  If all of the repairs and lost income from delays over the course of a year were tallied, odds are that the sum would far outweigh the cost of an equipment upgrade.

Upgrading outdated material handling equipment in favor of the safer, more reliable and more efficient powered carts from DJ Products will have many benefits, both immediate and long term, which will far outweigh the initial one time investment of the purchase.

The material handling equipment from DJ Products is ergonomically designed to be among the safest equipment that your employees can use, this helps to ensure that your employees avoid many of the injuries often associated with manual material handling.  You’ll also get unparalleled reliability, with carts that can operate strong for an entire shift on a single charge with no worries at all about failure.

Healthy employees and reliable equipment will dramatically increase your operational productivity, this will allow you do satisfy more customers and do so in a quicker fashion.  Equipment that can help to keep your employees healthy and allow you to fulfill customer orders more quickly will pay for itself in no time, regardless of the cost of the initial investment.

Battery Powered Tugs Position You for Future Success

The woes of the U.S. auto industry should serve as a cautionary tale for the rest of us. To weather the current economic storm, U.S. businesses must embrace the future, maintain flexibility, manage labor and rein in expenses (see our Dec. 12 post). While we certainly hope the economy improves more quickly, economic experts interviewed on CBS’ 60 Minutes last night estimate it could take as long as three years to bring the U.S. economy back to a robust state. Business decisions you make now and in the coming months could well determine whether you’ll still be around to enjoy the economic resurgence when it comes.Moving to DJ Products’ innovative, ergonomically-designed battery powered tugs and electric carts could position you to compete successfully now and into the future.

  • Embrace the future. President-elect Obama has made a commitment to American workers to mandate safe work environments. Backed by a Democratic Congress, material handling industry experts predict a quick reinstatement and expansion of the ergonomic workplace safety rules initiated by the Clinton administration but rescinded by President Bush. Being proactive about workplace safety not only positions you to meet future OSHA requirements, it sends a positive message to workers and can be a powerful public relations tool in an era when Americans use purchasing power to support their own political agendas.
  • Maintain flexibility. DJ Products’ versatile battery powered tug provides maximum flexibility to meet the changing needs of your business. From heavy-duty assembly line pushers to compact cart pushers that can maneuver around obstacles in populated corridors, our battery powered tug will grow with you to meet future challenges.
  • Manage labor. DJ Products’ compact, highly maneuverable, battery powered tugs and carts allow a single worker to perform tasks that often require two to three workers when performed manually. Our ergonomically-designed movers maximize worker safety, eliminating the physical strain associated with pushing, pulling, lifting and carrying tasks. Workers are able to work more efficiently, improving productivity.
  • Rein in expenses. Electric and battery-powered tugs are cheaper and more energy-efficient to operate than gas or diesel-fueled lift trucks. But it’s the ergonomic design of our products that will provide the greatest benefit to your bottom line. Ergonomics has been proven to reduce worker injury, reducing expensive medical, insurance, workers’ compensation, disability and lost man-hour costs. Businesses typically recoup their investment in ergonomic equipment within the first year.

To find out more about DJ Products’ innovative battery powered tugs and carts, visit our website. Give us a call and let one of our ergonomic experts show you how DJ Products can help position you to compete successfully in the future.

Preventing Catastrophe

More than five thousand workers are killed on the job every year; weekly reports can be viewed on OSHA’s website detailing the individual events that caused the fatalities.  This is a very scary number, but what’s scarier than the sheer number of deaths that occurred is that many of them probably could have been prevented.

For the week ending May first (the latest week with an available report), there were nearly twenty fatalities.  One of the accidents involved an employee of a major national retailer who climbed onto a storage rack and fell while attempting to get back onto a ladder.  There are other instances on the weekly report that point to poor judgment on the part of the employee and many that occurred as a result of faulty or malfunctioning equipment.  These reports show that the proper employee training and education and the presence of properly functioning equipment that is specifically designed to handle the type of work being performed can most certainly prevent injuries and very likely save lives.

Warehouse and material handling equipment needs to be more than just fast, it needs to be reliable and safe in order to provide the best possible work environment.   The best material handling equipment is quiet, reliable and easy to use because equipment failure and overly complex controls can increase the chances for accidents and injuries.

Employees need to be properly trained on how to use each piece of material handling equipment that they will encounter while performing their job duties and they need to be well aware of all general safety procedures and practices for the workplace.

There will always be injuries in a line of work that requires plenty of physical labor and the transport of heavy materials, but with the proper education and the safest and most reliable equipment, those injuries can be kept to a minimum.

Eliminating Overhead the Smart Way

The economy is still lagging far behind what it was a few years ago and though some industries are beginning to see some promise, logistics and third party warehouses are still struggling to stay out of the red.  In order to keep the doors open, many businesses are being forced to find a way to cut overhead because the customers just don’t have money to spend.

Many businesses are moving to smaller facilities, cutting down the inventory they stock and even cutting employees just to lower spending enough to remain profitable.  If you slash inventory, move to a smaller facility or cut employees you could be hurting your company’s ability to provide adequate service, but there is a way that you can spend less money while at the same time improving your ability to serve the customer.

Propane powered equipment may seem like the most convenient and efficient way to move material, but when you calculate the cost of fuel and tally up the frequent maintenance and repair costs you’ll see that quite a bit of your budget is being spent on this equipment that is supposed to be saving your company money.  A much more economic way to move material is with battery operated carts and lifts.

The lifts and carts offered by DJ Products are quiet, efficient and incredibly reliable and the cost of operation is far less than that of a propane powered forklift.  A single employee can easily maneuver around tight spaces with heavy loads of inventory and not ever have to worry about wasting time changing an empty fuel tank – the lifts and carts from DJ can last an entire shift on a single charge.

You don’t need to sacrifice the quality of your service, your capacity to store product or your number of employees to get back into the green – you may be to be able to cut costs and provide better service by running your operation with the right equipment.

How DJ Products Can Help You Be a Survivor

As we’ve said in this space before, it’s going to take a firm hand on expenses, the guts to embrace innovative ideas and products, and the flexibility to act quickly when opportunities present themselves to survive the current recession.  DJ Products’ ergonomically-engineered carts, tugs and movers can help you get the jump on the competition and position your business to move boldly — and successfully — into the future.

Cost effectiveness, worker safety, healthcare issues, energy and environmental concerns, immigration and a changing workforce — these are among the most powerful issues that confront businesses owners today. Customers, workers, the public and the government will all be watching how we address these issues in the course of business. It’s no longer enough to produce a fine product. Today, we’re also graded on how we produce that product and the cost or benefit to our workers and the environment, not just our customers. Government oversight and a watchful press have added a few links to the food chain.

Here’s how DJ Products’ ergonomically-designed carts, tugs and movers can help you successfully meet these challenges:

  • Cost effectiveness is key when every penny counts. When DJ Products’ ergonomic carts and movers are integrated into your workplace or production operation, full return on investment is typically realized within the first year or two through increased production and worker efficiency and decreased healthcare, disability and workers’ compensation costs.
  • Worker safety is one of the issues at the top of President-elect Obama’s to-do list. Stricter OSHA regulations regarding ergonomic issues are expected early in his administration. During his campaign, Obama promised workers a safer work environment which industry experts predict will mean tougher ergonomic standards and increased government oversight. Implementing an ergonomic program built around DJ Products’ carts, tugs and movers will put you ahead of the game as regulations tighten up. Ergonomically designed to take the physical burden off your workers, DJ Products’ carts improve workplace safety significantly.
  • Healthcare issues will be another key thrust of the incoming administration. Many of the plans being discussed in the press will increase the already difficult healthcare burden on employers. Ergonomic equipment is a proven way to significantly — and immediately — decrease employee medical, insurance and disability costs.

To be continued on Friday

Keeping Up with the Trends

The world of business, and subsequently warehousing and material handling, is ever changing.  To be successful you must adapt as your customer needs change and there is never a more serious time to serve your customer as a time where the economy is suffering.  If you can’t provide the service that your customer needs, you better believe that he or she will find someone that can in an effort to serve their customer and keep their doors open.

Recent trends have shown that some businesses are being forced by the economy to move into smaller properties in an effort to cut overhead and continue operating.  Some of these businesses will require their suppliers to change from a customary “pick and pack” type supplier to someone who is willing to store materials until they are needed.

Warehouses and distribution centers who are asked to provide this service to their customers need, more than ever before, to be properly organized and capable of staging and shipping orders quickly and accurately once an order is received from their customer.  Direct shipments to end users may be necessary and the overall volume of shipments may increase causing the environment to become faster paced and more hectic.

The need for accurate and properly stocked inventories becomes crucial in this type of environment; because there is no time for error when direct or expedited shipments are required.  One way to ensure that your workers can both accurately receive and store materials and to ensure that material can be pulled and staged for priority shipments quickly is to have the proper material handling equipment available for use.

The ergonomic, battery powered carts and scissor lifts from DJ products operate quickly, cleanly and quietly for an entire shift on a single charge, allowing your employees to focus on the accuracy necessary for pulling and receiving orders rather than on the back breaking labor of manual material handling.  In order to become and stay successful your team needs to be fast, accurate and efficient and one of the best ways to achieve that level of performance is to operate with the best possible equipment.

Ergonomic Solutions for Warehouse Order Fulfillment

If your business relies on a warehouse to ship goods to your customers then you know that getting orders is only half of the battle. Once you have secured a customer’s order, it is then up to you and your team to see to it that the order reaches that customer in good condition as quickly as possible. We have no doubt that you have stressed the importance of filling orders quickly to your employees…but have you given them the right equipment to make this happen? It is important to give your employees the supplies so they can carry out your vision.

When employees are working as quickly as possible but using outdated or inadequate machinery, they are more prone to injury. In addition to this, rickety carts, unstable dollies, and overused scissor lifts can result in spilled or damaged merchandise. Having employees out on leave because of injury and losing merchandise to accidents can eat away at your profits and you do not want that.

DJ Products offers and entire lineup for industrial ergonomic material handling solutions including:

• Carts with casters
• Carts with 4-swivel casters or wagon-wheel style of turning
• Carts in a straight line
• Platform Trucks & Scissor Lifts

Our ergonomic cart pushers, electric cart pullers and other solutions eliminate the strain of manually pulling heavy product, parts carts, or wheeled equipment. Your employees can continue to work efficiently with a reduced chance of injury or product damage.

Our products are not one-size-fits-all. Contact us at 800-686-2651 to discuss exactly what you need and the customization options that will work for your industry.