Tag: Business Tips

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If you have issues with outdated material handling equipment that gives you fits because of regular maintenance issues, odds are that your move will be a disaster.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?

The difference between Employees and contractors.
The difference between Employees and contractors.

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.

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.