Tag: economy

The Ever Shrinking Military Impacts Local Communities

Budget Cuts

When a military base slowly shrinks over the course of years, the effects can be more troubling for the local community than a complete closure. Many military towns have seen a gradual loss of jobs as the Department of Defense moves to reduce infrastructure as an alternative to closing a base.

Tim Ford, the head of the Association of Defense Communities, recently told Federal News Radio that many people who publicly oppose a Base Realignment and Closure (BRAC) would admit privately that a planned closure is easier to deal with than a gradual shrink. 

The BRAC process involves transparency leading up to a final decision. A community can make plans to repurpose the buildings in order to evolve the local economy. On the other hand, the local community can find itself facing silent job losses and large swaths of unused buildings if the DoD shuts down bits and pieces of the base.

Budget concerns, changing politics, and shifting military strategies all contribute to these changes. A revised BRAC process may be the key to ensuring the best long-term results for affected communities, but many difficult decisions remain.

We follow these affairs closely because our industrial tugs are used by military bases as GSA-approved materials handling equipment. In fact, industrial tugs can help make day-to-day operations more efficient for the military.

With that in mind, the good news is that many military bases are finding ways to streamline operations and reduce costs to avoid closure. 

For more information about industrial tugs for military and DoD applications, as well as a wide range of products for businesses of all kinds, visit DJProducts.com.

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.

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.

A Little Goes a Long Way

When it comes to performing any job, it’s imperative that workers have both the “know how” and the proper equipment to accurately perform every task they encounter.  An employee attempting to figure out how to use a piece of equipment as he goes can result in plenty of wasted time and even put people at risk of injury.

Upgrading every piece of computer and material handling equipment at once could bring about too much of an expense for some distribution centers to bear, but taking small steps to ensure that you have all of the equipment necessary and that all of your employees know how to use it is a big step towards optimal efficiency. 

Having only one big, bulky forklift that is constantly breaking down doesn’t make much sense when you receive and ship out dozens of pallets worth of material per shift.  In the long run, you could save money on operating costs and move more freight if you scrapped the outdated forklift in favor of two smaller battery powered lifts.  Battery powered lifts from DJ Products are designed to be safe and easy for any employee to learn how to operate, which could mean a lot less waiting and a lot more working.

These battery powered lifts and carts from DJ Products can also last an entire shift on a single charge, so there is no time wasted changing fuel tanks and fewer moving parts means that there is less chance for equipment breakdown and a smaller budget required for equipment maintenance.

Streamlining or optimizing can sound like overwhelming processes to undertake, especially for a business trying to survive during these tough economic times, but properly training your employees and providing them with the right equipment may be all that needs to be done to make your operation as efficient as possible.

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.

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.

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.

Surviving and Thriving during Mergers and Acquisitions

Having to cutback, downsize or merge with a competitor has become the reality for many logistics and storage companies if the want to keep their doors open.  There just currently aren’t enough customers and enough money/product moving around in order to keep every company busy enough to justify, or even allow, them to operate at the level that they had prior to the economic downturn.

Mergers with competitors can pose a whole host of issues in terms of operations; the most obvious would seem to be the personal and computer program interactions.  Adopting a brand new and potentially very different system of daily operations and having to interact with a bunch of new personalities can be a daunting task, but few people view just how much difference their can be in the warehousing and storage aspect and it’s profound affect on the employees involved.

Differences in equipment, inventory control and shipping and receiving practices can be difficult obstacles to overcome.  In order for a newly developed company with employees from two different backgrounds to be successful, some operational changes may be a necessity.  Customers coming from both businesses will need to see accuracy and speed at least comparable, if not improved, to what they were used to in order to feel confident with the new situation.

Increasing speed and accuracy may require upgrade changes in equipment as well as operations.  Outdated, inefficient and unreliable machines could spell doom to a company who is attempting to keep current customers from leaving during a period of transition.  The proper material handling equipment will more than pay for itself in a very short period of time with reduced fuel/energy costs and increased employee productivity; and the capability of delivering goods quickly and accurately will keep customers loyal and could possibly increase your bottom line.

DJ products offers affordable, reliable and easy to use solutions for material handling, the exact type of equipment needed for a warehouse to maintain, or exceed customer expectations during the transition period of a merger.