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to the best material handling equipment can perform a task much more efficiently than a full crew trying to operate outdated equipment that could be prone to failure.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

Ergonomics Investment Adds to Healthy Bottom Line

Every dollar invested in an ergonomics program results in a savings of $4. That’s the astounding finding of a recent study on the cost effectiveness of implementing ergonomics programs in U.S. manufacturing and business settings.

In the past, many companies didn’t initiate ergonomic programs until forced to do so in response to workers’ compensation claims. The expense associated with claims coupled with the responsibility to eliminate hazardous work conditions forced companies to implement solutions to address ergonomics issues. But acting after the fact only prolongs the agony, pointed out Mike Kind, writing for the New Hampshire Business Review. “As claims are filed, an organization’s workers’ compensation premium increases immediately upon renewal. It then takes a three-year history of reductions in claims for the rate to drop.”

Proactively implementing an ergonomics program may not eliminate every future workplace injury, but the use of ergonomically-designed equipment and the introduction of ergonomic practices has been shown time and again to significantly reduce workplace injuries and their associated costs. In most cases, the cost of ergonomics equipment is recouped within the first year.

As an example, Kind cited a highly computerized operation in which more than half of the employees reported musculoskeletal disorders during their first year on the job. Implementation of an aggressive ergonomics program, including new equipment, procedures and training, resulted in an overall 50% decrease in worker complaints.

Proactive implementation of ergonomics initiatives impacts your bottom line immediately and positively.  “In one client research study, it was determined that for every dollar invested in an ergonomics program, $4 in cost savings were achieved,” Kind said. Reduction of worker injury results in significant savings in direct medical costs, insurance and workers’ compensation premiums. Lost work-hours due to doctors’ appointments, physical therapy sessions, sick days and absenteeism decrease. As employee safety and well-being improve, workplace morale increases, bringing with it a healthy work environment, increased productivity and improved customer service.

Creating a successful ergonomics program hinges on three important elements, Kind said:

  • Support of top management and inclusion in the corporate culture 
  • Establish goals and measure results
  • Provide effective education, training and leadership

Next time: Tips for creating a successful ergonomics program

Plenty of Jobs Available in Material Handling Fields

With the economy down and unemployment up, jobs are a hot topic this election. As industry starts to feel the economic pinch, plants are closing, workers are being laid off and some companies are facing bankruptcy. But there are jobs aplenty in the material handling industry and the associated industries of logistics, fulfillment and warehousing.

There’s a severe shortage of qualified industrial workers in America, particularly in material handling fields, that holds promise for job-seekers. The material handling industry is expected to be “50% short in terms of employees needed by 2010,” said Virginia Wheeler, executive director of the Material Handling Industry of America’s (MHIA) Education Foundation. The growing worker shortfall guarantees job security well into the next decade for people going into material handling jobs in warehouses, fulfillment centers, logistics operations, and factories.

“Our industry is begging for people,” said Dan Quinn, MHIA VP for education. He feels America’s high schools are undercutting the value of the trade jobs that built and continue to build America. “A lot of schools measure themselves on the percentage of students who go on to college,” Quinn criticized. “Schools should embrace the concept that non-college-bound students are still valuable contributors to the economy and society.”

The reality is that many high school students are not interested in pursuing a college education for a wide variety of reasons. Many simply prefer hands-on, physical work to sitting at a desk. Many are anxious to get out on their own and lack the interest in four more years of schooling. Many do not have the financial resources to consider college but must provide for themselves immediately after high school graduation. As the recession deepens, finances are expected to play an increasing role in education/work decisions. Some high school juniors and seniors, like Alaska Governor Sarah Palin’s future son-in-law, have already been forced to drop out of school to help support their families. Some employers are offering their employees the opportunity to complete their high school education through GED programs.

It’s unfortunate that many high school guidance counselors are so focused on college that they ignore the positive opportunities available in material handling industries. Raising awareness of job opportunities is one of the primary challenges facing the material handling industry, said Alan Howie, author of Fundamentals of Warehousing and Distribution. “. . . the essential problem is we have to get the message out there that . . . work in the material handling industry is much more than a manual labor job. It’s a career in a high-tech industry. Our challenge is to build awareness of all of this in the schools and colleges.”

Free CartCaddy Demo Program Lets You Try Before You Buy

If you’re a businessman, you know that marketing and sales can get a customer in the door and make that first sale, but it’s superior customer service that keeps customers coming back. The management and staff of DJ Products are dedicated to providing our customers with superior service. If you have a material handling problem, our trained sales engineers can help you find a cost-effective, ergonomic solution that will improve production efficiency, benefit employee health and safety and improve your bottom line.

That’s a tall order for one of our compact, fuel-efficient, highly-maneuverable CartCaddies, but we know our equipment. We’re so certain of our product, we offer a free demo trial program. Try before you buy! Contact us and one of our sales engineers will make arrangements for you to receive and utilize a CartCaddy cart pusher at your facility before you buy. Put our ergonomically-designed, easy to maneuver, extremely versatile CartCaddy cart movers to the test in your own environment before you decide to order. It’s a good way for you to get to know us and experience first-hand the superior customer service that keeps our customers coming back.

A typical response from our demo program is this comment from C.F. at Admiral Beverage Corp.: “Tried it, all is well! Just send the invoice for payment.”

Here’s what some of our other customers have to say about DJ Products’ innovative CartCaddy carts, tugs and movers and our superior customer service program:

“Very impressed with the unit and love it!” said M.W. of Mark Webber, noting that the unit shipped sooner than expected.

“The CCShorty is working great. We haven’t had any problems with it. I will share this with other Weyco. Thanks for checking on us,” said J.G. of Weyerhaeuser, pleased with our follow-through customer service.

“The CartCaddy 5WP is working very well. The service you provide is great and it will be a pleasure to do future business with you,” said S. F. of Weyerhaeuser.

“Easy to operate, lots of power! Just like you said!” raved S.P. of Advanced Barrier Extrusions.

“First try worked flawlessly; all folks like it. Very maneuverable; talking about buying second unit,” noted a pleased R.R. at Aerospace.

“You did a great job adapting it to our containers,” said B.W. of Air Products, noting our ability to engineer and build to order.

“They got all five units. The one extra unit was for their gift shop and they LOVE it. They are very pleased with all the units; made their job so much easier,” said L.S. of the Arkansas Children’s Hospital. The hospital’s L.F. added, “Very pleased with your service and assistance … been a pleasure working with you.”

“Folks surprised at how fast it goes,” said A.P. of Airforce Research. “Slicker than they thought!!”

“The unit they have now; they want another one! Sending over PO# for two units,” said A.B. and Add Vantage.

Electric Lift Table Puts Work Materials at Optimal Height

We all know how much faster and easier a job is when all our materials are at optimal height and within easy reach. It’s a minor annoyance when we have to lift a heavy object or stretch for tools when we’re at home doing the weekend warrior bit; but when we have to lift and stretch hour-after-hour on the job, that minor annoyance can quickly become a painful injury. According to the Bureau of Labor Statistics, overexertion injuries from repetitive lifting and awkward reaching cost employers an average of eight days of workers comp time per injury. That’s a pretty high price to pay for avoidable injuries.

Lifting injuries that cause pain and damage to the lower back are a leading safety issue in manufacturing, assembly, fulfillment, pick and pack, and numerous other industries. Ergonomics is the solution. Ergonomics is the science of designing equipment and tasks to safely accommodate the breadth of variety in the human work force. Ergonomic material handling equipment addresses safety issues created when workers of various sizes must perform the same work tasks. By making the individualization of work platforms possible, ergonomic material handling equipment minimizes the risk of injury from lifting, stretching and straining. DJ Products’ ergonomically-designed lift tables, scissors lifts and adjustable carts and platforms allow each individual worker to position materials at his personally-optimal work height.

Unfortunately, many plant operations were set up before manufacturers realized the importance of ergonomics in protecting workers’ health and safety, increasing productivity and managing costs. Fortunately, DJ Products manufactures a complete line of mobile adjustable lift tables, scissors lifts, carts and platforms. Our compact, battery-powered, electric lifts allow workers to lift materials and perform tasks at optimal work height, eliminating injury-inducing stress and strain. Contact DJ Products for complete information. We manufacture a full line of material handling products and can design an ergonomic solution to your unique problem.

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.

Recession Leads to Survival of the Fittest

It’s Darwin’s principle of natural selection in action. In a poor economy, only the strong survive. A recession “always hits manufacturing first and hardest,” Hank Cox of the National Association of Manufacturers recently told the Minneapolis Star Tribune. According to the Associated Press, in December, “manufacturing activity sank to its lowest point in 28 years,” with indexes falling farther than expected. Some index components, including new orders, fell to historic lows not seen since the 1948-49 recession. Overall, the manufacturing index, which has been steadily declining over the past six months, reached its lowest reading since June 1980, the tail-end of the last major recession.

Major players from Dow Chemical to Ford Motor Co. to Anheuser Busch are chopping jobs and shutting down factories in an attempt to stop the financial hemorrhaging, but it may not be enough. With the global economy in a tailspin, manufacturers can’t rely on exports to save them from disaster. And when the big guys are flailing, you can bet small businesses are being hammered. From manufacturing to retail and everywhere in between, the economy is taking a toll on American businesses. No sector of the economy is proving to be recession proof. No one reported growth in December and most sectors of the economy reported declines in everything from new orders to production, employment and prices. Weak companies are going to fail. It’s survival of the fittest, but those companies that do survive the recession are predicted to emerge far stronger than before and in an arena with less competition. To make the cut, you’ll need to roll with the punches and be proactive about the changes that are coming.

The floundering economy and growing jobs crisis has given the incoming Obama administration a popular mandate to change America (see our previous two posts). Industry experts tell us to expect increased government oversight and regulation. Public backlash from the highhanded attitude of financial institutions that refused to disclose how they spent bailout money has assured that future government help will come with lots of strings attached. Add to that President-elect Obama’s campaign pledge to American workers to improve workplace safety and his pledge to the public to increase environmental protection, and American businesses should be girding for a new era of more invasive government regulation.

There are always two ways to handle change. You can rail and fight against it, or you can embrace it and use it to position yourself ahead of the competition. Time and again, history proves that those who look to the future and embrace change survive. As competition increases, the companies that are proactive about incorporating new technology, new equipment and new processes into their operations are the ones that will rise above their competition and live to see a better tomorrow.

Next time: How DJ Products can help you be a survivor.

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

“Where do you get off …?” Why DJ Products Talks About Economy, Politics

We cover a lot of ground in the DJ Products’ blog: general material handling news, business and production tips, product specifications and applications, industry trade shows, ergonomics, government regulations, and manufacturing forecasts. To the apparent annoyance of some of our readers, we also discuss the economy and politics.

It’s our view that today’s astute business person is interested in a broad view of the business world, as opposed to a narrow, industry-specific perspective. Because he/she realizes that American business does not exist in a vacuum, the savvy business person is interested in not only what’s in front but what’s coming over the horizon. It’s the economic and political landscape of our country that shapes that future view.

One of the purposes of this blog is to provide a forum for discussing those broader forces that affect U.S. business. If our readers just wanted to learn about DJ Products’ ergonomically-designed carts, tugs and movers, they could visit our website. But we think they want more, and we’re not the only ones. Many industry bloggers stray off their own narrow subjects to address the greater concerns of business. And, like us, they get the occasional reader comment, “Where do you get off ….” talking about the economy or politics or whatever annoys the reader. 

Mike Botta addressed this issue in his March 2 post on the Industrial Equipment News blog. Botta labeled it “Stimulosis Psychosis,” which he defined as “a rare disorder that causes people to temporarily lose touch with today’s economic, political and business realities.” Botta has run into the same issue we have: Blog readers complaining that they prefer to get their economic and political news from other sources. It seems to be a question of bona fides. While we agree that we are not national experts in the field of economics or politics, who better to discuss how the broad concepts bandied about in Washington will actually affect the businesses forced to apply them than the business owners tasked with the job?

An excellent case in point is national ergonomics standards. Ergonomics standards have waxed and waned with Washington’s shifting political winds: in with Clinton, out with Bush, coming in again with Obama. While business owners generally support ergonomic measures because they increase production, lower overall costs and improve worker health and safety, the state of the economy has many worried about the expense of implementation and reporting procedures if the feds get involved.

Politics and the economy are all part and parcel of doing business in America. It’s like Botta, who writes about industrial equipment, says in his blog, “No Industry = No Equipment.” Without a viable U.S. industrial community, material handling firms have no market for their equipment. A healthy industrial community is dependant on a healthy economy and, right now in particular, a healthy economy is dependant on politics.

ErgoExpo Promotes Value of Ergonomics to Business

With the 15th Annual National Ergonomics Conference and Exposition opening tomorrow in Las Vegas, this seems like a good time to promote the value of ergonomics to creating safe working conditions, safe work environments and saving businesses a considerable amount of money on their bottom line. ErgoExpo will focus on the role of workplace ergonomics in economic recovery with special educational tracks detailing return on investment, impact on America’s aging workforce, potential to reduce health care costs, and impact on improving workplace safety.

The application of ergonomics to workplace processes and equipment has been proven time and again to increase productivity and profitability while improving health, safety and morale. Implementing an ergonomic plan and utilizing ergonomic equipment in your place of business is a win-win proposition — for business owners and their employees.

  • Ergonomic procedures eliminate painful movements that can stretch and pull muscles causing injury, particularly with repetition or over time.
  • Utilizing ergonomically-designed material handling equipment eliminates the strain and risk of injury from transporting and positioning materials or equipment.
  • Implementing an ergonomic program creates a safer environment in the workplace.
  • Ergonomic equipment allows workers to stay on the job longer and take fewer and shorter breaks, increasing productivity.
  • A safer work environment means fewer injuries and fewer lost man-hours, increasing worker productivity.
  • Fewer injuries decrease direct medical and physical therapy costs as well as the expense of insurance and disability claims, improving your bottom line.
  • When work is less physically taxing, workers are happier and workplace morale goes up.
  • When injuries go down and morale goes up, absenteeism goes down and productivity goes up!

To find out more about ergonomically-designed material handling equipment, visit the DJ Products’ website today.