Tag: Business Tips

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to the best material handling equipment can perform a task much more efficiently than a full crew trying to operate outdated equipment that could be prone to failure.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.

Corporate Videos Get Their Own YouTube Site

Billed as YouTube for business, eCorpTV.com seems tailor-made for videophiles like DJ Products’ marketing department! As we’re sure you’ve noticed when you visit our website, we’re great fans of video. At DJ Products, we’ve found that while a picture may be worth a thousand words, a video is the next best thing to putting our product in the customer’s hand. Just as realtors have discovered that video tours draw home buyers, DJ Products has discovered that showing customers what our ergonomic powered carts can do is a highly effective way to sell our product.

That’s the idea behind eCorpTV.com. Businesses from Fortune 500s to small start ups can quickly and easily post their product videos on the site free of charge. As the site developers note, more than 68% of American workers aged 25 to 44 will watch online videos this year. Adding online video marketing to your advertising mix just makes sense. Online videos have the potential to attract not only customers, but investors, journalists and potential employees. Corporations don’t have to worry about competing with stupid pet tricks or humorous rants, eCorpTV.com accepts only G-rated legitimate business videos. They aim to become a quality service for the business community.

We think they’re on the right track. Watch one of the DJ Product ergonomic material handling product videos. We’ve found that no amount of text can show quite as effectively as a video exactly how tight a turn our CartCaddy power tug can make or just how our side-steer powered cart can be maneuvered. If you haven’t added video to your product website yet, it’s time to take a page from the future and start filming!

Invest in Ergonomic Power Movers to Avoid Employee Injury

If you are wondering if it is worth your while to invest in ergonomic equipment like powered movers and warehouse tugs, keep in mind the costs associated with work injuries that are related to overexertion.

According to Risk&Insurance.com, employees who work in construction, transportation and warehousing may need a month or more to recover from injury. You probably need all your staff working at full capacity to complete projects, so having someone out can slow productivity. There are things like illness that you can’t prevent, but you can give your staff ergonomic equipment to help avoid preventable injuries that can result in lost work time and lower morale.

The article from Risk&Insurance.com discussed how,

“The median number of days away from work to recover from occupational injuries/illnesses was eight for the third consecutive year, the BLS [Bureau of Labor Statistics] reported. Transportation and warehousing had the highest incidence rate of all industry sectors, although it was basically unchanged from the previous year…sprains, strains, and tears accounted for 40 percent of the total cases, of which 43 resulted from overexertion.

The back was the body part injured most, at more than one-third”

DJ Products manufactures movers, trailers and tugs that can eliminate the pain and strain of manually pulling and pushing heavy carts or wheeled equipment. Our products are less costly, smaller and more maneuverable that traditional powered equipment. So if you have tried other power movers and found that you were less than satisfied, we think you will be pleased with the functionality of our products.

Please take the time to find a specific electric cart pusher on our website, or call our Sales Engineers for a recommendation on your proper solution. Our Sales Engineer will also be happy to explore custom applications where our base products match primary criteria.

Staying Competitive as Recession Wanes

The economy is finally showing signs of life; although as we mentioned in our last post, recovery is likely to be a slow process. As America recovers from the recession, businesses may find themselves trapped between wary consumers on one side and skittish bankers on the other, further slowing economic recovery. A continued lag in spending and lending means that belt-tightening will remain the norm for at least the next six to 12 months if businesses are to stay competitive and, in some cases, survive.  

In an informal poll conducted last month, Manufacturing & Technology eJournal readers said they planned to rely on a variety of cost-cutting measures over the next year to maintain their competitiveness (click the link above for complete survey results):

  • 36% expand territory
  • 32% seek cost reductions from existing vendors
  • 24% eliminate underperforming products/services
  • 24% employee layoffs
  • 21% reduce salaries or work days
  • 12.5% seek work closer to home

Turning to your own workers for suggestions on how to increase cost-saving measures has proved a successful tactic in many industries during the recession. While concessions made by auto workers and airline employees have garnered the lion’s share of the headlines, workers in nearly every industry and business field have agreed to cut salaries, decrease work hours or forego benefits in order to maintain the solvency of their employer and keep their jobs.

It’s all about sharing the load and allowing workers to buy into the decision-making process. Workers express greater support for solutions they have helped create. And they’re more likely to embrace cost-cutting measures — and exert peer pressure on fellow employees to toe the line — when they feel:

  1. Their efforts will have a direct impact on solving the problem.
  2. More people will be able to keep their jobs because of the sacrifices they are making.
  3. The burden is being shared equally by workers and management.  

That last point may be the most critical. We’ll look at why next time.

Invest in Ergonomic Material Handling Solutions

They say you have to spend money to make money but deciding which expenditures are worthwhile is certainly not easy. Business owners have to concern themselves with the bottom line, often cutting costs to make sure that they don’t wind up on the red. But one area where you might want to consider spending more instead of cutting back is material handling solutions. You may think that not investing in things like industrial power movers or motorized carts will save money because you spend less…but what you are not considering is how much inadequate equipment can cost you in the long run.

Your workers have their own budgets and bottom lines to be concerned about and they may remain silent about the pains and strains of manually pulling and pushing heavy carts and other wheeled equipment because they don’t want to ruffle any feathers. Unfortunately, this means that there may suffer micro-tears and muscle strain that over time gets worse until one day there is an injury that warrants medical attention. In some workplaces, the thought of having just one or two key workers out on medical leave is enough to send management into a panic. It is one thing if employees fall ill or get injured away from the job; having employees suffer injuries at work that could have been prevented with the right equipment is another matter entirely.

Our material handling solutions are not one-size-fits-all: DJ Products will work with you to customize our products so they suit the needs of your workers. Call is at 800-686-2651 to speak with a Sales Engineer today.