logistics Archives - Page 3 of 5

Products to Help Your Business Go Forklift-Free

There’s a growing trend, particularly in manufacturing, warehousing and logistics environments to go forklift-free (see our June 11 & 13 posts). An increasing number of businesses are choosing to replace forklift trucks with safer, ergonomic material handling products that are cheaper to own and operate. As we noted, going forklift-free can result in considerable savings in production and maintenance costs while significantly decreasing worker accidents and injuries and their associated medical, insurance, workman’s compensation and lost man-hour expenses. DJ Products can help your business transition to a safer forklift-free work environment.

At DJ Products we manufacture a full line of electric cart pullers and motorized cart pushers and tugs. Our products are ergonomically designed to eliminate the pain and strain of manually pushing and pulling heavy carts and wheeled equipment. Smaller and more maneuverable than traditional equipment like forklift trucks, walkies and riding tugs, you’ll also find our products to be less costly to purchase and maintain. Implementing forklift-free solutions with DJ Products equipment offers multiple benefits, including:

Decreased operating costs, particularly equipment purchase and maintenance costs,
Decreased floor space needed to maneuver equipment,
Decreased worker injuries and attendant medical, insurance, workman’s compensation and lost man-hour costs,
Decreased liability,
Increased plant safety,
Increased worker morale, and
Increased efficiency and productivity.

DJ Products can help you plan your transition to a forklift-free environment. We specialize in solving ergonomic material handling applications with battery-powered, walk-behind tug and tugger solutions. Many of our motorized cart products can be custom configured for adaptation to almost every heavy cart pushing or pulling application. Click here to request a free brochure or video about DJ Products’ ergonomic solutions. We also offer a free demo trial program so you can try out a CartCaddy cart pusher at your facility before purchase. Our expert Sales Engineers can discuss the details of your particular application and suggest ergonomic products that will provide the appropriate solution. Click here to contact a DJ Products Sales Engineer and begin your transition to a safe, cost effective, forklift-free work environment today.

Tips for Ramping Up Warehouse Efficiency

The economy is forcing everyone to tighten up operations. Efficiency is today’s business byword. In a timely article posted on Supply Demand Chain, TriFactor systems engineer Greg Tuohy offered provocative tips to ramp up warehouse efficiency by improving material handling processes in distribution centers.

Know where you’re at. Before you can decide where to make improvements, you have to know where you are, says Tuohy. Review operational data and break it down so you can see where your money goes and relationships between processes. Start with the big picture, but break it down to figure the cost of each element in the process. This will show you where you’re getting the best value for your dollar and where you need to tighten up your operation.
Define customer service. Tuohy recommends defining your commitment to customers as narrowly as possible to allow more accurate measurement of success or failure. Defining what constitutes achievement of a perfect order, including labeling, delivery time, damage and documentation, also defines employee goals and customer expectations. Aim for realistic and achievable results that will give you a competitive edge.
Touch it once. Each time an item is touched invites human error. Track the number of times an item is touched from the time the order is received until it ships out of your facility. Work to eliminate as many steps in the process as possible.
Look up. When you need to expand operations, expand upward into unused overhead space instead of laterally. Elevating operations makes more efficient use of available space, allowing you to extend the useful life of your facility.
Map SKUs. Gather data on SKUs in inventory, says Tuohy. Carefully map each SKU for shape, weight and velocity of use. Knowing how fast items move from demand to use allows you to slot your facility for maximum efficiency. “The data also allow you to take advantage of the cubing features of most warehouse management systems in order to calculate the appropriate-sized carton to use for a respective order,” says Tuohy, thus reducing carton and packing filler expenses.

Next time: More ways to ramp up warehouse efficiency

Learning to Think Sustainably

Supply Chain Sustainability and Green Sustainable Supply Chain are the coming watchwords in the material handling and logistics industries (see our July 7 post). A green sustainable supply chain is the process of using environmentally friendly resources to create products that when used — and also when eventually discarded at the end of their life cycle — break down into components that either benefit the environment or can be recycled to create new products without harming the environment.

“The whole idea of a sustainable supply chain is to reduce costs while helping the environment,” explained Patrick Penfield of the Whitman School of Management at Syracuse University in a 2007 article for MHIA’s publication On the Mhove. To gauge the cost savings of a sustainable supply chain requires that businesses think in terms of the life cycle costs of a part, piece of equipment or process. It’s merely the next step in the evolution of cost analysis, argues Penfield. “In the past,” he says, “most companies were focused on reducing unit costs. Many companies later evolved into looking at total landed costs with the onset of global trade. Companies also started looking at the usage costs with a piece of equipment.” Figuring costs based on the total life cycle of a part, piece of equipment or process is simply taking an even broader view of cost analysis.

Approaching business and industry from the broad outlook of sustainability “could be a tremendous weapon for companies to reduce costs,” Penfield believes. “There are many facets of the supply chain that could be improved by looking at it from a sustainability standpoint.” Today, companies worldwide are reviewing design and production processes and redesigning those processes to use fewer resources and less energy. In one example, Interface Corporation, a leading maker of materials for commercial interiors, decreased the horsepower requirements of a pump system by 92% simply by using shorter, fatter pipes than originally called for. Their engineer’s redesigned system “cost less to build, involved no new technology and worked better in all respects,” Penfield points out.

Next time: Using sustainability to create a competitive edge

Building the Workforce of the Future

Even before the economy took a dive, material handling industry experts were warning of coming changes to America’s workforce that could have far-reaching implications for U.S. businesses. America’s population is aging. By 2015, the over 65 population will increase by more than 20%. At the same time, the number of people getting started in the workplace, those 25 to 39, will grow by only 6%. And even more alarming, the population group that has traditionally formed the core of America’s workforce, those aged 40 to 54, will shrink by 5%. Businesses need to prepare now to deal with a younger, smaller U.S. workforce.

But that’s only part of the problem, said Gary Forger, Senior VP of Professional Development for the Material Handling Industry of America (MHIA), in his keynote address at ProMat 2009 earlier this month. The fast pace of technological change and the need for constant learning and retraining may present the biggest challenge. Where it used to take 12 to 15 years for skill sets to before becoming obsolete, it now takes less than 3 years. “It is estimated that 39% of the current workforce and 26% of new hires will have basic skill deficiencies,” Forger said. Unfortunately, America’s future workforce may not have the “live to work” ethic of their predecessors. Tomorrow’s worker will be seeking a better work-life balance, placing higher value on “work to live.”

While coming changes in workforce demographics will present significant challenges for U.S. businesses, Forger said it will also present unique opportunities to improve productivity and performance for companies able to exercise flexibility. Forger suggested that those opportunities are likely to be found in unexpected places. Companies may find it productive to pair old and new workers, he said. New workers would bring advanced technological skills to the table; older workers, knowledge and experience. Automation is expected to increase to allow smaller workforces to maintain production. The need to accommodate aging workers will place increased emphasis on ergonomic equipment.

As the number of U.S. workers dwindles, the material handling industry should prepare for an increasingly multi-cultural and multi-lingual workforce. Forger said recruiters may need to target new work groups, such as “Hispanic women reentering the workforce.” Retention efforts may need to become more flexible and more creative, offering different incentives to differently-motivated groups. In the future, advancement, employee satisfaction and responsibilities may provide better retention results than basic pay. How companies address work-life balance issues is also expected to play a key role in employee retention.

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.

Automated Products Will Lead Future Material Handling Growth

Automation and third world development are expected to drive the 5% annual global growth predicted in the material handling industry, according to a new study released by The Freedonia Group, Inc., a Cleveland-based industry research firm (see our previous post). Durable goods will continue to lead demand, but opportunities in nondurable goods are also anticipated.

In 2007, durable good manufacturers led global demand for material handling equipment. Over the next five years, material handling growth will be led by a massive worldwide increase in motor vehicle production followed by increased demand for durable consumer goods, particularly electronics. However, rapid scientific and technological advances in nondurable goods, particularly the chemical and food and beverage industries, are also expected to create new demands for material handling products around the world.

Rapid industrialization in developing countries in Asia, the Pacific, Eastern Europe, Africa, the Mideast and Latin America will increase demand for conventional material handling products such as industrial carts, tugs, trucks, lifts, conveyors, hoists, production line movers, cranes, etc. However, the Freedonia Group expects automated material handling products, including robots and automated guided vehicles (AGV), to post the best gains as industries in the U.S., Western Europe and Japan move to increase automation. Software, systems design, project management and other high-end services to these markets are also expected to post significant increases. Economic and manpower issues will drive the march toward automation and increased productivity in western markets with an emphasis on automated equipment and systems that can be easily integrated into large-scale automated factory and warehouse environments.

High fuel prices, environmental concerns and worker health and safety issues will also play an increasing roll in shaping material handling demand, particularly in U.S. markets. The current shift away from fuel-intense gas-powered trucks to more energy-efficient battery-operated material handling movers and tugs that was sparked by high fuel prices is expected to accelerate. Escalating medical, insurance and workers’ compensation costs will likewise drive a move toward ergonomically designed material handling equipment and systems.