Our Predicted 2023 Warehouse and Distribution Center Trends

Trailer Dolly
The Future of Warehousing

Warehouses and distribution centers are heading into 2023 with many opportunities and challenges. Safety improvements are always important, making the use of trailer dolly solutions an ongoing trend. From supply chain and inventory solutions to increased interest in the use of automation, these are some of the other top trends in the warehouse and distribution industry for the new year.

Electric Delivery Vehicles

More companies are looking into using electric delivery vehicles to help cut down on pollution, noise, and costs. This involves the use of smaller vehicles, such as vans and small trucks, rather than box trucks. The use of these smaller vehicles is more practical in some areas, while also offering a way to reduce environmental damage.

Autonomous Lift and Reach Trucks

The use of forklifts in warehouses and distribution centers comes with a risk of injuries. Businesses are exploring the possibility of using autonomous lift and reach trucks to improve safety and efficiency. These trucks can make it easier to move items around with a lower risk of worker injuries.

Neighborhood Distribution Centers

Real estate costs and limited inventory on the market are pushing business owners to find other solutions for storing products. Some are turning to neighborhood distribution centers or mini-warehouses for storing goods. These localized distribution centers and warehouses could help make up for a lack of larger warehouse space.

Automation

With the rise in eCommerce, warehouse and distribution center owners are showing a growing interest in adopting automation. The use of automation can offer a solution to the problems the industry faces due to supply chain issues, labor shortages, and rising costs.

Supply and Inventory Solutions

With the supply chain improving in some areas, companies are looking into solutions for managing inventory more efficiently. Some companies face shortages of certain products, while others are dealing with too much inventory. Solutions might involve reducing prices on overstocked items or finding ways to obtain low inventory items.

If you’re looking into solutions for moving large vehicles safely in warehouses, hangars, or other facilities, please contact DJ Products. We offer trailer dolly solutions that make it much safer to pull or push large vehicles and other items.

Part 4: Why Businesses Fail

Financial experts seem to be teetering on the verge of labeling the country’s current economic situation a recession. It’s a label the government seems loathe to use, believing it will wreak further havoc on the stock market and send the economy spiraling down even further. No matter what you call it, things are difficult and it looks like they’re going to stay that way for a while. The economy is slow, credit is tight, fuel is high and bankruptcies are up. For many companies, the combination has delivered a knockout punch and they’re down for the count.

Last week we started a series on Why Businesses Fail (see our July 14-18 posts). We figure it’s better to learn from the mistakes of others than repeat them yourselves. This week we continue our list of the most likely reasons businesses fail:

  • Inappropriate inventory. You can’t sell what customers don’t want. Too much or the wrong inventory causes cash flow problems, wastes sales time and drains profits. By constantly tracking individual inventory items, you can make adjustments and effectively manage product flow on a weekly and monthly basis. Don’t make the mistake of relying strictly on accounting summaries to track inventory. Accounting tracks inventory by dollars, lumping moving and non-moving inventory into an average. To adequately control inventory, you need to track the actual physical items.
  • Excessive capital investments. Americans seem to equate success with things. Bigger cars, bigger houses, the latest gadgetry. In business there can be a tendency to buy newer, bigger, more expensive tools and equipment as a mark of success. But success in business is really based on the quality of the product or service you produce. That’s what drives sales and repeat business. Equipment purchases should relate to your ability to improve or maintain the quality of your product. Certainly, you need to update equipment as technology changes to be competitive. And often the expense of new technology can be recouped in short order by savings in energy, floor space or worker health and safety. But capital equipment purchases should always be evaluated for their ability to enhance the production of a quality product. 


If you’re looking for a cost-saving solution for your capital equipment investment, turn to the material handling experts at DJ Products. At DJ Products we manufacture ergonomically designed electric carts and motorized cart pushers for business, industry and service providers like hospitals. Our products are smaller and more maneuverable than traditional powered equipment like fork trucks, walkies and riding tugs, yet are capable of moving the same sized loads with ease. A smart capital investment, our products are less costly than purchasing traditional powered equipment. Because our carts, tugs and equipment movers are ergonomically designed, you’ll also realize an attractive savings in worker health and safety costs, including medical bills, insurance payments, workers’ compensation and lost man-hours. Visit the DJ Products website to check out our full line of ergonomically designed electric and motorized carts.


To be continued

More Tips to Improve Warehouse Efficiency

Continuing our Monday post, today we provide more tips to ramp up warehouse efficiency by improving material handling processes in distribution centers. In a recent Supply Demand Chain article, TriFactor systems engineer Greg Tuohy offered these suggestions:

  1. Re-evaluate pick tech. Eliminate paper-based picking in favor of auto-enhanced technology. Implementing radio frequency (RF), pick-to-voice or pick-to-light technology can make your operation more efficient. Evaluate the density of SKU locations, throughput, product characteristics and specialized procedures such as serial number tracking to determine the pick technology best suited to your operation, Tuohy advises.
  2. Evaluate pick method. Decide which picking method is most cost effective for your operation. Piece picking where the picker walks the aisles picking and completing one order at a time is the most time-consuming and, therefore, most costly. Small, maneuverable powered tugs can facilitate far more efficient batch picking where all orders are picked simultaneously in a single pass. Dolly pullers and electric tugs can also be used to streamline operations that use assembly-line style zone and wave picking. Powered carts and tugs help streamline your operation by increasing the speed and volume of work that can be accomplished by each worker.
  3. Multi-task. Practice task interleaving which combines picking with the put-away process, Tuohy suggests. Interleaving ensures that operators and equipment are always tasked, that time and energy are not wasted on empty loads. The idea is to create a continuous loop where equipment is always loaded, bringing materials to pick locations and returning empty pallets or delivering picked product to shipping locations.
  4. Minimize downtime. Equipment requires planned maintenance. A proactive maintenance plan will minimize downtime and save time and money. Planned maintenance should be conducted on equipment and automated systems on a regular schedule. Correct small problems immediately and keep frequently needed spare parts on hand.
  5. Protect power supply. Assess the vulnerability of your power supply. Lightning strikes, power outages and power spikes can wreak havoc with distribution systems, says Tuohy. Work with your local electric company to install surge protectors and other recommended protections. Battery-powered carts and tugs with enough juice to work through an entire shift can be the lifeline that keeps your operations moving when Mother Nature throws a fit.

Should You Hire Temporary Staff at Your Warehouse?

Should One Hire Temporary Staff?
Should One Hire Temporary Staff?

Of course, ultimately, a question like this can only be answered by the management staff at any warehouse, but consider these warehouse management tips when it comes to hiring on a staffer.

  • When compared to permanent employees, staffers have an overall productivity and effectiveness of 99.8%. That figure essentially means there is no difference in how a staffer performs than a regular employee.
  • Most staffing services offer their own insurance and benefit packages, and that keeps overhead lower when you hire a staffer than when you hire on a full/part time employee.
  • The best staffing companies routinely do pre-employment testing for drug use, honesty and health. When your staffer comes to work on that first day, you’ll know they are ready to go.
  • For seasonal work, which overloads your regular employees, a staffing service can’t be beat.

Try Before You Hire

Perhaps the best reason for a staffing service is searching for a new employee. Contract a staffing service for a worker, see their performance and their interaction with other employees, then make a decision on permanent employment. If that particular staffer doesn’t work out, you can terminate their contract through the staffing service, with essentially no hassle in doing so, which may be one of the best warehouse management tips you can have.

The Bottom Line

Yes, there may be some downsides in hiring a staffer, like overall employment cost and possible union pressure, but in virtually all situations, the question of whether or not to hire from a staffing service should be a resounding “yes!”

For more information, check out our blog at DJ Products, Inc.

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.”

The most Common Accidents are often the most Avoidable

When a warehouse or material handling accident is mentioned it often conjures up images of something serious, like a large rack collapse or a forklift that’s been driven off of a dock.  Though these are accidents that certainly can and do occur, they are in reality much more rare than the most common type of accident seen in warehousing – the trip (or slip) and fall.

When your employees have to physically carry materials from one location to another (locations that are often on different levels), lines of vision can get impaired making it difficult or impossible to see obstacles, spills or alterations in the surface that could lead to a nasty fall.  The potential for injury when a fall occurs, when the subject is carrying something, is greater due to the fact that the person can’t easily brace themselves for the impact because their hands are occupied.

These potentially dangerous accidents could easily be avoided if your material handlers were using equipment that was ergonomically designed for moving material rather than having to manually move it.  DJ Products carries a wide array of equipment that is safe and reliable and that will greatly lessen the chances of dangerous accidents in your warehouse.  The lifts and carts from DJ Products will quickly move material (much more than could be manually moved by an individual) and will put it in the proper position for your employees to lift.  Since the lifts are doing the work, your employees can focus and concentrate on the path they are traveling which will drastically reduce the chances of a trip or slip and fall accident.

When you can effectively eliminate the most common accidents from your work environment, you make it a much safer place for your employees.  You’ll lose less man hours to injury and increase your employee’s productivity, which can also do wonders for your bottom line.

Preventing Catastrophe

More than five thousand workers are killed on the job every year; weekly reports can be viewed on OSHA’s website detailing the individual events that caused the fatalities.  This is a very scary number, but what’s scarier than the sheer number of deaths that occurred is that many of them probably could have been prevented.

For the week ending May first (the latest week with an available report), there were nearly twenty fatalities.  One of the accidents involved an employee of a major national retailer who climbed onto a storage rack and fell while attempting to get back onto a ladder.  There are other instances on the weekly report that point to poor judgment on the part of the employee and many that occurred as a result of faulty or malfunctioning equipment.  These reports show that the proper employee training and education and the presence of properly functioning equipment that is specifically designed to handle the type of work being performed can most certainly prevent injuries and very likely save lives.

Warehouse and material handling equipment needs to be more than just fast, it needs to be reliable and safe in order to provide the best possible work environment.   The best material handling equipment is quiet, reliable and easy to use because equipment failure and overly complex controls can increase the chances for accidents and injuries.

Employees need to be properly trained on how to use each piece of material handling equipment that they will encounter while performing their job duties and they need to be well aware of all general safety procedures and practices for the workplace.

There will always be injuries in a line of work that requires plenty of physical labor and the transport of heavy materials, but with the proper education and the safest and most reliable equipment, those injuries can be kept to a minimum.

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.”

More Companies Going Forklift-Free

An increasing number of companies, particularly in the manufacturing, warehousing and logistics industries, are moving toward a forklift-free environment. Safety concerns and maintenance costs are the primary factors driving this major change in material handling application.

According to a recent study by the Hyster Company, a major manufacturer of forklift trucks, only 6% of end-users know their real forklift maintenance costs and few have implemented programs to reduce those costs. Over the 20-year life of a forklift, 80% of the total costs are operating expenses. Ownership accounts for only 20% of a forklift’s total cost. The Hyster study estimates that American businesses waste more than $1 billion per year in unnecessary material handling operating costs.

Far more expensive are the human loss and liability costs directly tied to forklift injuries each year. Each year, nearly 100 U.S. workers are killed in forklift accidents and another 20,000 seriously injured. Forklift overturns cause 25% of forklift-related deaths. Medical expenses, insurance costs, workmen’s compensation and lost man-hours associated with forklift accidents cost American businesses millions of dollars each year.

According to John Neuman and Larry Tyler, writing in American Machinist, a forklift-free program can have multiple benefits, including:

  • reduced inventory,
  • improved material flow,
  • reduced line-side handling equipment,
  • reduced floor space,
  • increased cycle efficiency,
  • increased floor coordination,
  • increased stocking efficiency, and
  • decreased operating costs.

On the human side, a forklift-free environment improves investor, worker and public perception of a company’s attention to safety. It improves worker ergonomics, efficiency and production and decreases expensive lost man-hours, medical, insurance and liability costs.

Next time: Implementing a forklift-free program.

SJF Material Handling Checks In

We were delighted to hear from one of our Minnesota brethren this week. Kent Powell of SJF Material Handling, Inc. in Winsted, Minnesota, just a couple of hours down the road from our home office in Little Falls, ran across our blog and dropped us a line.

SJF is a material handling equipment supplier and consultant. For more than 25 years, they’ve been providing new and used material handling equipment from their Minnesota base. Their Genesys division designs and engineers cutting-edge material handling and distribution systems. Services include customized consulting, layout/design, engineering and control programming services for warehousing and distribution-based industries.

You’ll find the SJF Material Handling Blog an interesting read and will want to add it to your list of “favorites.” Their blog focuses in large part on the steel market that provides the raw material for the conveyors, pallets, carousels, rack and other material handling products they sell. It provides readers with another level of insight into the issues that concern our industry today.

DJ Products manufactures ergonomic electric cart pullers and motorized cart pushers for the manufacturing, distribution, warehousing, logistics, automotive, healthcare, hospitality and retail industries. We specialize in ergonomic material handling solutions that eliminate the strain and resultant injury that occurs from manually pushing or pulling carts and wheeled equipment. We’re one interesting cog in the larger material handling wheel, as is SJF Material Handling. We know there are others out there and we want to hear from you.

We invite our readers and others who share our interest in material handling and its applicable industries to share your comments. Alert us to other interesting websites and blogs that we can share with our readers. Drop us a comment if you read an interesting blog post. Share your own experiences or concerns or let us know what you’d like to hear more about. Our goal in creating the DJ Products blog is to share news, information and insights about material handling. We’d love to hear from you. Drop us a line.