Tag: logistics

Using Sustainability to Create a Competitive Edge

Being eco-friendly is increasingly considered a social, political and economic advantage in U.S. business and industry — and, therefore, a competitive edge. Forward-thinking companies are using environmental initiatives and dedication to sustainability to create advantageous public opinion. Cutting edge, eco-friendly solutions gain customers. The extreme, sometimes almost rabid, level of dedicated customer loyalty, despite sometimes higher consumer costs, has been an unexpected benefit. An increasing number of ecologically-concerned Americans are willing to pay more for products and services that protect or sustain the environment. Interestingly, consumers view this as a way of partnering with industry to save the environment.

More industries are pursuing sustainability to reduce the life-cycle costs of parts, equipment and processes (see our July 9 post). “Anything not in a product is considered a cost; it’s a sign of poor quality,” say the authors of Green to Gold in explaining 3M’s Pollution Prevention Pays program. “As 3M execs see it, everything coming out of a plant is either product, by-product (which can be reused or sold), or waste. Why then should there be any waste?” As the authors point out, 3M views waste as unrecouped expenses and something to be avoided. The company’s goal is 100% sustainability.

Sustainability is not limited to the direct costs of business and industry. Savings can also be realized in indirect costs such as packing, transportation and other logistics considerations. Eco-friendly smart packages that reduce cardboard and filler save resources and money. Replacing gas-guzzling forklifts with energy-smart electric and motorized carts and tugs is another environmentally smart way to cut costs. Optimizing shipping loads and delivery strategies can result in significant cost savings given skyrocketing fuel prices.

Implementing a sustainable supply chain also eliminates or reduces the amount of money spent on disposal of harmful by-products, scrap and adherence to regulatory issues. In many instances, by-products previously disposed of as waste are now generating viable revenue sources for environmentally-conscious companies. Sustainability is already being used to competitive advantage by many companies who have found it a profitable way to grow market share in their industry.

Teens Searching for Summer Jobs Must Think Outside the Box

If you have a teenager looking for a summer job, you know how grim their prospects are this year. Some employment experts are predicting that this will be the worst summer job market since the 1950s. Jobs usually held by teen-aged workers have been snapped up by laid off, furloughed, out-of-work adults looking for any way to make ends meet until the economy turns around. Tomorrow morning when you pick up your cup of coffee, take a look at the person manning the drive-through. You’re more apt to see a mature face than some fresh-faced high school kid — and the money-hungry collegiate workforce has yet to hit the summer job market. With traditional summer employers cutting back, teens and collegiates will have to think outside the box to earn money for tuition, car parts, clothes and dates this summer.

This is definitely a summer where teens and college students will have to look beyond the mall and local fast food franchises to find employment. It’s time to think outside the box! In years past, employment experts might have suggested that teens look for jobs in manufacturing. Unfortunately, the economic crisis has slowed U.S. manufacturing production, sending home thousands of U.S. workers and glutting the manufacturing workforce. There’s little opportunity in manufacturing this year for unskilled, part-time, summer laborers. But there is potential opportunity in fulfillment, distribution and warehousing, job experts say.

Not only do businesses benefit from cheaper labor when they employ teens and collegiates, but there can be advantages to building early working relationships with tomorrow’s prime workers. Summer jobs provide an opportunity for college students to try out potential careers while giving employers a chance to size up future workers. Many teens and collegiates return to a company summer after summer and eventually seek full-time employment. Savvy employers use these opportunities to pre-train future staff and benefit by gaining educated, top-notch employees ready to hit the ground running as soon as they earn their degree.

Distribution, fulfillment and logistics companies that utilize DJ Products’ highly-adaptable, ergonomically-designed material handling equipment won’t have any trouble giving this summer’s hungry teen workforce an opportunity to grow their work skills. Ergonomically-designed to adjust to the physical size and abilities of any worker, DJ Products equipment can be successfully used by male or female teens and college students without risk of injury. Intuitive controls, superior safety features, adaptable design, and premium construction make DJ Products’ motorized carts and electric tugs easy to use, minimizing training time and maximizing production — the perfect combination for summer workers! 

Process Automation Key to Logistics Success

For logistics providers competing in a tight economy, process automation is an essential strategy. A MarketInsight study just released by Hubspan, Inc. surveyed more than 200 North American logistics companies with annual revenue between $30 million and $10 billion. Process automation to streamline shared processes, achieve operational efficiency and improve collaboration between customers, carriers and distributors were identified as the most critical challenges facing the logistics industry today.

“The logistics industry recorded strong growth over the past decade due to globalization and an increased demand for imported goods,” said Robert Pease, Vice President of marketing for Hubspan. “However, the industry shifted in early 2008 due to a slowing economy, rising fuel costs and a shortage of qualified personnel. This shift drives the need for logistics companies to apply efficiencies that automate processes and streamline operations to overcome current economic hurdles.”

Incompatible systems and difficulties in integrating systems were cited as the greatest challenge by a majority of survey respondents. “In an industry driven by efficiency, it is surprising that so few logistics providers are able to resolve core integration issues that impact on-time performance, process automation and customer service,” Pease said. “Increasing process automation and system compatibility illustrate two key opportunities for logistics providers looking to outperform the competition and thrive in today’s tough economic environment.”

Utilizing ergonomically designed powered carts and tugs to replace the manual transport of materials and products is one way logistics companies can increase automation and improve production efficiency. With the logistics industry facing a shortage of workers, ergonomic material handling solutions allow each worker to efficiently accomplish a greater workload while dramatically decreasing potential risk of injury. Replacing expensive, high-maintenance, fuel-guzzling forklifts and gas/diesel-powered equipment, with less costly, more maneuverable, electric-powered carts and tugs can result in a considerable savings in high fuel costs. These smaller, more maneuverable carts also provide more versatile solutions to material handling problems. For more information on ergonomic solutions to material handling problems, visit the DJ Products website.

Outsourcing Logistics Expected to Revolutionize Warehousing

A shift toward logistics outsourcing could spell revolutionary change for the warehousing industry that could result in leaner, more efficient business models. That was the conclusion of logistics industry experts speaking at the recent Warehouse Educational Research Council’s (WERC) annual conference in Chicago.

“In the 20th century the common business model was a large integrated company that owned, managed and directly controlled its assets,” Andy Dishner, senior director of client solutions for TMSi Logistics, told conference participants. “But in this new century we have seen a major cultural shift toward outsourcing many key functions. It really comes down to evaluating whether logistics is your core competency.”

Damian Burke, a principal with logistics consultancy Conveying Solutions Inc., joined Dishner in urging the warehousing industry to streamline logistics. Currently, companies are forced to split their resources by handling their own logistics, an area in which they may not have sufficient expertise. Burke said many companies are turning to third-party logistics providers (3PL) to solve their logistics problems. By outsourcing logistics, companies can concentrate on their primary business and leave the logistics to experts, thus streamlining their own operations.

While recommending the use of 3PLs to handle company logistics, both Burke and Dishner reminded conference participants that they could not afford to ignore logistics management. “We realize that a lot of manufacturers realize that it could be professional suicide if the choice [of a 3PL] doesn’t work out,” Dishner said. “Relationships and measurements are key,” Burke added. “We are certainly not advocating reckless investment in systems you don’t trust.”

Supply Chain Digest Announces Fall Workshops

Supply Chain Digest is pulling out a heavy-hitter to headline its annual fall workshop on improving distribution center and warehouse management and performance. Ken Miesemer, Senior Consultant at St. Onge and former Director of Distribution and International Logistics for Hershey Foods, will lead two fall workshops being sponsored by the industry magazine. “Best Practices in Distribution Center Design, Operations and Management” will be presented in Philadelphia on October 21-22 and in Atlanta on October 28-29.

Author of the book Start-Up of a World Class DC, Miesemer said, “These workshops use outstanding materials that have been extremely well received by logistic professionals, and deliver concepts and insight that aren’t just theory but which have been proven in real-world distribution environments.”

Billed as “hands-on, practical training sessions,” Supply Chain Digest’s popular Professional Education Series workshops encourage interaction between instructors and distribution, warehousing and logistics professionals. In addition to Miesemer, Supply Chain Digest editor Dan Gilmore will review supply chain execution software systems. Course materials include distribution analysis and decision-making tools and templates that attendees will be able to implement in their own operations. The discussion and provision of practical action plans is a hallmark of Supply Chain Digest workshops.

The workshops will focus on the implementation of best practices to improve labor productivity, operations efficiency and inventory accuracy using proven techniques and technology. Course highlights include: building and material handling equipment design, testing design through automation, organizing to minimize bottlenecks, workforce performance management, fostering a culture of continuous development and improvement, differentiating solutions, redefining bid specifications, controlling risk driven margin expectations, and much more.

“Best Practices in Distribution Center Design, Operations and Management” workshop details:

  • October 21-22 at Penn State Great Valley Conference Center in Malvern, PA just outside of Philadelphia 
  • October 28-29 at Georgia Tech Conference Center in Atlanta, GA

Click here for a complete course outline and hotel and registration information.

Implementing a Forklift-Free Program

Forklift trucks are expensive to maintain and are a significant source of worker injuries and even deaths each year. The high cost of using forklifts in manufacturing, warehousing and logistics environments is pushing an increasing number of businesses to go forklift-free (see our June 11 post). Going forklift-free can reduce inventory and equipment needs, improve material flow and customer response, increase cycle efficiency and overall productivity, and decrease operating costs. At the same time a forklift-free work environment significantly improves plant safety; decreases liability concerns; and markedly decreases worker injuries and associated medical, insurance, disability and lost man-hour costs.

Implementing a forklift-free program can be challenging and will require a coordinated effort by top-level management, all affected departments, and suppliers, say John Neuman and Larry Tyler in American Machinist. They emphasize that success will require the ability to maintain “a big picture overview of the project as well as an understanding of how each department and suppliers, both internal and external, will be impacted.”

A successful transition to a forklift-free environment begins with a clarification of plan targets and goals and the identification of waste, ergonomic and safety threats. Neuman and Tyler suggest beginning by asking how operations and your supply chain will be impacted by a forklift-free system. Typical project leaders include manufacturing and industrial engineers and material logistics personnel. Input should be gathered from safety teams, production managers, line operators, tug drivers, market supply teams, your purchasing department and suppliers. Good communication, efficient information coordination, and clear assignment of responsibilities are important to success at this stage of the project, warn Neuman and Tyler.

Performing a trial run that physically traces each step of operation from the supplier to the receiving dock through assembly and back to the shipping dock allows the implementation team to uncover any potential problems before initiation. Role playing allows each individual who will participate in the new process to experience and try out the actual movements they will need to undertake in a forklift-free production. The suggestions gained from a physical dry run can provide valuable insight into operational, personnel and supplier issues that must be addressed before full implementation of a forklift-free system.

Obviously, implementing a forklift-free environment in an existing plant presents a significantly greater challenge than in a new or remodeled facility where changes can be incorporated in the planning phase. Neuman and Tyler warn that “existing plant constraints may make the best forklift-free strategy less than optimal.” Aisle widths, conveyor heights, set backs, line space, ceiling height and floor quality are among the challenges that may need to be overcome. Incremental conversion beginning with one or two work cells or a common assembly area may allow for greater success in brownfield operations. Despite the added challenges, positive results can be achieved in brownfield operations though initial cost and implementation time may be somewhat greater.

Sustainability Takes “Green” to Next Level

Everyone is “going green” these days. Concern for the environment sparked “green” businesses, but skyrocketing fuel prices have ignited those efforts, pushing environmental practices ever more quickly toward sustainability.

What is sustainability? Sustainability takes environmentally-friendly practices to the next level. It improves upon the protection and husbandry of the world’s natural resources by utilizing processes that reclaim and reuse the products and byproducts of industry. Production comes full-circle: resources are used to create products which are then used and, at the end of their life cycle, recovered and reused to create new products.  The ultimate goal of sustainability is to complete the cycle without creating unusable byproducts or waste and without polluting the environment.

Supply Chain Sustainability and Green Sustainable Supply Chain are the coming watchwords in the material handling and logistics industries, said Patrick Penfield of Syracuse University’s Whitman School of Management in a 2007 article for On the MHove, a MHIA publication. Growing concern over environmental pollution and dwindling natural resources are driving the push for sustainability.  “Humankind has inherited a 3.8 billion per year store of natural capital. At present rates of use and degradation, there will be little left by the end of the next century,” authors of the book Natural Capitalism warned in 1999. Less than a decade later, scientists are concerned that the crisis point could be reached far sooner.

Despite the Bush administration’s failure to embrace global environmental efforts (and there are many valid arguments on both sides of that issue), European legislation restricting pollution and hazardous substances presage the future. Experts predict that the world will be unable to support its populace if the global community — including the U.S., China, Brazil, India and developing countries around the world — does not embrace environmental protection and work quickly to implement sustainable industry.

Next time: Supply Chain Sustainability

Material Handling Offers Good Job Growth Potential

Particularly in a tight economy everyone wants to know where the jobs are and where they’re going to be for the next decade or so. Material handling and the related fields of logistics and warehousing are growth industries that offer good job potential now and into the future. International development is predicted to drive 5% annual growth in the worldwide material handling industry for each of the next five years (see our Sept. 22 post). In the U.S. retiring baby boomers are creating critical worker shortages in logistics and warehousing. However, automation and increasingly sophisticated technology are also creating a need for more highly skilled and more highly educated workers.

While the value of experiential education is still recognized, a bachelor’s degree is the new entre into a professional career; and a master’s degree, the ticket to climbing the career ladder, according to Mike Ensby of Clarkson University’s Engineering & Global Operations Management Department. “The three most important credentialing letters today seem to be ‘MBA,'” he said in a recent interview with Modern Materials Handling, particularly if you’re aiming for the boardroom.

Companies do still hire people right out of high school, and many professionals who began their own careers that way seem to place greater value on certified skills than college degrees. But material handling is in a state of transition. Industry experts say the drive to automation and integrated systems will increasingly demand a workforce with advanced technical skills. Tomorrow’s warehouse worker is more apt to operate a computer than a forklift.

In the coming decade, high school grads may find themselves stuck in a career track that rarely rises above skilled labor, such as order fulfillment. “Going into the future, not many people will have much success in their career progression without professional development of some kind,” Ensby said.

Next time: What courses will catapult your material handling career to success? What will employers be looking for?

Ergonomic Plan Can Help Attract and Retain Workers

This week we’ve been talking about the growing worker crisis that faces the material handling, manufacturing, warehousing, logistics and related industries (see our Nov. 3 post). By 2010, American industry will face a 50% shortfall in its material handling workforce. Attracting workers to material industry jobs is one of the biggest challenges of our industry (see our Nov. 5 post), particularly with worldwide growth in our industry expected to remain robust over the next several decades. Developing and instituting a comprehensive ergonomic plan in your company is an excellent way to attract new workers and retain your current workforce.

Ergonomics is the science of designing equipment and planning work tasks with the goal of eliminating workers’ risk of musculoskeletal injury. Equipment and tasks are designed around the capabilities of workers and seek to make it possible for workers to perform tasks with a minimum of physical strain and effort. A comprehensive ergonomic plan combines the use of ergonomically-designed equipment with ergonomically-planned task procedures to make it possible for workers to perform tasks more efficiently with a minimum of potential injury-causing motions.

Any time a worker has to bend, stretch, reach, push, pull or lift, he runs the risk of serious musculoskeletal injury. These injuries cost U.S. businesses more than $150 billion a year. More than 13 million American workers suffer non-fatal injuries each year, and 6,500 people die from workplace injuries. Workers’ compensation costs U.S. businesses $60 billion annually, according to the U.S. Department of Labor. More than 25% of those claims are for back injuries caused by repetitive lifting, pulling, pushing and straining. Back injuries alone affect more than 1.75 million workers a year, costing American businesses more than $12 million in lost workdays.

When you implement a comprehensive ergonomic plan, you send an immediate message to your employees that you respect their contribution to your business and value their health and safety. That, in turn, engenders worker appreciation and loyalty. The ability to offer a safe, ergonomic work environment is a powerful inducement in attracting and retaining your workforce.

DJ Products is an industry leader in the manufacture of ergonomically-designed electric and motorized cart pushers. Our equipment is less costly, smaller and more maneuverable than traditional equipment used to move carts and equipment. Ergonomically-designed equipment increases worker efficiency, thus improving production efficiency. In most situations where ergonomic equipment is introduced, businesses recoup purchase costs within the first year in medical, insurance, workers’ compensation and lost work-days savings alone. An investment in ergonomic equipment is a win-win situation for both businesses and their workers. DJ Products’ ergonomic specialists can help you assess your equipment needs and explore custom applications to benefit your business and your workers.

Education That Will Forward Your Material Handling Career

Material handling offers good growth potential now and for the future. It is also becoming increasingly automated and technical (see our Sept. 29 post). So how can students interested in material handling as a growth career and current workers who want to move up position themselves to be in demand by employers today and into the future?

Industry experts agree that education is the key. While a high school diploma can still get you an entry-level job on the warehouse floor, it will take certified skills to maintain that job as the level of technology accelerates through the material handling, warehousing and logistics industries. Moving up the corporate ladder will increasingly require a bachelor’s degree. If you aspire to a management position, plan on putting in that extra year or two to get your MBA. Some colleges now offer concurrent bachelor/MBA programs and many offer night, weekend and online courses. Executive MBA programs geared to working business professionals provide an accelerated path to a higher degree by recognizing acquired experiential knowledge.

“Going into the future, not many people will have much success in their career progression without professional development of some kind,” warned Mark Ensby, director of Clarkson University’s Engineering & Global Operations Management Department. “The three most important credentialing letters today seem to be ‘MBA.'”

As automation and the global economy drive industry to greater integration, versatility and cross-industry knowledge will be increasingly valued. Students who combine material handling courses with industrial engineering, logistics, supply chain, warehousing, project management and computer systems studies will best position themselves for the future.

Partnerships between industry associations and universities are also expected to increase experiential learning. As it moves toward the future, material handling and associated industrial engineering industries will be looking for graduates with experiential learning, not just theoretical knowledge. “Associations like MHIA are going to play more and more of an important role in leveraging universities as the provider of skilled employees,” predicted Dan Boos, president of consulting firm Gorillas and Gazelles.

Mark Tomlinson, executive director of the Society of Manufacturing Engineers, has called for public schools to place greater emphasis on manufacturing as a viable career choice. Industry pressure is expected to increase two-year technical training opportunities in manufacturing, material handling, and industrial engineering fields. Tech schools, some beginning at the high school level, are seen as a quick way of solving the looming worker shortage in these industries. “The challenge is there just isn’t going to be enough of anybody for what’s needed,” Boos said.

“Over their lifetime, many of them (high school grads) will earn more because they started working sooner than those who took four or five years to finish college,” Tomlinson pointed out. “So we’ve got to get away from a good job/bad job mindset and encourage people to get some training.”