Warehousing Archives - DJ Products

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:

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.
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.
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.
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.
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?

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.

U.S. Manufacturers Turn to ‘Insourcing’ to Save Money

Insourcing is the new buzzword in U.S. manufacturing circles. U.S. economic woes are causing many manufacturers to replace outsourcing with insourcing, an unexpected boon for American workers. The declining value of the dollar against foreign currencies, skyrocketing transportation costs caused by high fuel prices, and decreasing export demand resulting from the global economic downturn are making it more cost efficient for U.S. manufacturers to produce their products at home.

The same economic forces that sent U.S. jobs overseas are now bringing them home. Manufacturing costs in Alabama are currently running 3% below those in China, causing companies like Exxel Outdoors, Inc., which makes sleeping bags for Wal-Mart and other customers, to execute an “about face” on its production priorities. Since the Wall Street tumble, the company has hired more workers, added new equipment and beefed-up production at its Haleyville, Alabama plant, while cutting production at a joint venture in Shanghai. In 2007, 60% of Exxel’s bags were made in Shanghai. This year, the company will make more product at home than abroad and expects to produce 90% of their product at their Alabama facility by 2010.

Exxel founder and CEO Harry Kazazian is predicting a 20% increase in company revenue this year to $42 million. He credits insourcing as a major factor in his company’s success during a tight economy. Since 2005, he has seen the yuan appreciate 17% against the dollar, pushing up Chinese wages, material costs and freight costs. Kazazian says moving production from Shanghai back to Exxel’s Alabama plant just made financial sense.

“Labor is China’s advantage and our weakest link,” he said. “But they can’t compete with me on my just-in-time” production cycle. Exxel can deliver a sleeping bag from its Alabama facility within three days where shipping from China can take two months.

According to government statistics, U.S. manufacturing is contracting at the fastest rate since 2001, the last time America dipped into a recession. As countries around the globe struggle with the growing financial crisis, there has been a marked decrease in export demand. Without demand for the prodigious output that originally spurred outsourcing over the last decade, producing goods in the U.S. is becoming increasingly cost efficient. Smart companies are re-evaluating their outsourcing policies and making the switch to insourcing.

Surviving and Thriving during Mergers and Acquisitions

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

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

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

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

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

A Little Goes a Long Way

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

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

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

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

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

The Future Is Now!

If you have kids, you’ve probably seen trailers for the new Disney-Pixar animated film WALL-E. Robots like WALL-E and his cohorts represent the wave of the future in material handling, though let’s hope they get the kinks worked out before they start installation. Can you imagine the chaos if a bunch of inept robots was allowed to run amuck on your plant floor? Life, after all, is not a movie. The hero almost never arrives to save the day in the final seconds of a plant emergency!

Robot prototypes that allow us to glimpse and plan for the future of material handling are already on the market. British tech firm RTS Flexible Solutions has introduced a 3-D vision-based robot automation system that can grip complex shapes and profiles, pick at variable heights and even perform some inspection and defect rejection actions.

“Advances in technology mean we can deliver applications which have been difficult for conventional 2D technology,” commented RTS managing director David Bradford. While 2D vision-guided robotic automaton works on grayscale, color or line-scanning vision systems, the new 3D system can process on X, Y and Z coordinates. For the first time this allows a robotic application to accurately gauge height, depth and surface contours, opening new possibilities for material management.

It will be a while before robotic applications can effectively perform many material handling functions, but that day can already be glimpsed on the horizon. Computer software and management skills are more apt to define material handling workers of the future. It’s going to be a whole new ball game!

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.”

Safety Breeds Productivity

Too many warehouses and material handling companies view safety as secondary in order of importance compared to customer service – but a clean, safe and clutter free workplace can have a huge effect on productivity.

Organization is key in being able to deliver optimal customer service as orders can be pulled, stationed, packed and shipped much more quickly and efficiently in an environment that is clutter free and safe. There is also a much lower chance of injury in an environment that is organized, properly equipped and well designed.

Warehouse and plant managers shouldn’t wait for fire or safety inspection time to roll around to get their operations organized and clean – the possibility for greatly increased productivity and, in turn, an increase in the bottom line along with a loyal customer base are readily available for business that can provide lightning quick and pin point accurate service.

Employees who work in atmospheres where the equipment is outdated and unreliable are more likely to have to perform the brunt of their jobs manually; this can lead to oversights and errors that may affect the accuracy of orders and of your inventory. It can also result in material being left in areas that weren’t necessarily meant for storage, potentially leading to accidents or injuries.

Upgrading your material handling equipment to battery powered carts that are quiet, ergonomic and long lasting will allow your employees to work at a faster pace without having to worry about resorting to manual handling when the equipment fails. Nothing hurts moral and performance worse than equipment failure during the picking or stocking of a large order when the pressure is on to perform.

Electric Carts from DJ Products have the power to last for an entire, fast paced shift of shipping/receiving without any worry about failure. This means that your employees can fully receive stock orders and put them away, or pull and stage large orders without interruption – with the right equipment; your warehouse will be clean, organized and operating at the highest possible level of efficiency.