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.

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.

Is Radio Frequency the Next Big Thing for Warehouses?

Barcode scanning revolutionized distribution center and warehouse operations by automating functions such as receiving that had previously been done manually. As the technology celebrates its 40th birthday, the industry is looking for the systems that will move operations up to the next level.

Radio frequency is a major candidate to replace barcodes in order picking and fulfillment systems. This technology involves establishing a wireless network within a facility. The host server exchanges order information with the Warehouse Management System and this data in turn goes out to terminals worn on the wrists of warehouse employees.

The order picker is directed to each successive pick location and given information regarding quantities for each item. Confirmation of the pick is processed through the terminal, either by scanning the item or manually entering its ID number. Once an order is complete, it’s recorded in the server and the next order is on its way.

The RF system is less cumbersome for order pickers since they don’t have to deal with a paper ticket. It also results in more accurate order processing because the picker is required to confirm each line item. RF accommodates a wide variety of order picking methods, including zone, batch and wave, with all information recorded in real time.

Make sure that products are in the correct location on a timely basis. DJ Products has a full line of battery-operated tows and tugs that allow a single employee to efficiently move loads up to 50,000 pounds. Call 800.686.2651 or use our convenient online chat feature for immediate assistance from our friendly Sales Engineers at Team Cart Caddy.

Material Handling and Distribution Heats Up in the Summer – Literally

Warehouses are generally poorly ventilated buildings with no good source of circulation, many with metal roofs that absorb the heat of the sun, and certainly no provisions for air conditioning.  So as the temperatures of the Summer rises, so does the temperature of the workplace.

Open dock and receiving doors let in the Summer heat and the fast pace of the employees and the bustle of the machinery just forces the temperatures even higher throughout the course of the day.  In this type of environment it’s critical to have safe and reliable material handling equipment, because the extreme heat will only add to the dangers of manual material handling.

Having the proper equipment to assist in the transport of heavy loads gives your employees the opportunity to complete their work according to (or even ahead of) schedule without having to over exert themselves inside of the scorching warehouse environment.  Old, outdated propane forklifts can throw hot exhaust, which can also work to drive up the temperature in an already borderline dangerous environment making a very uncomfortable workplace practically unbearable.

Just because the temperature has risen outside, it doesn’t necessarily mean that you have to slow down your operation or that you have to compromise your employees’ safety.  Reliable, battery operated carts and lifts help to ensure that your employees will have the assistance they need with heavy materials, minimizing the risks involved with manual material handling.  Battery operated carts don’t tend to get as hot as propane operated lifts and they also don’t release hot exhaust into the already stifling air.

Your warehouse or distribution center is most likely going to be hot – even with ceiling and floor exhaust fans running it’s difficult to keep temperatures down.  It’s up to you to do whatever you can to keep your employees safe and one of the best ways to do that is to operate with the most reliable battery powered lifts.  Lifts and carts from DJ Products will help minimize unnecessary excess heat while ensuring that your employees can safely perform their regular duties without the fear of over exertion.

We’re Watching Warehouse and Logistics Trends for 2016 for You

Finance and accounting concept
Warehousing Trends for 2016

Industry trends serve to prepare for changes. Every business adopts change and technology at different paces, but many trends will eventually inform the new reality for us all. In 2016, the warehouse and logistics industry looks forward to beneficial disruption — especially in terms of technology that boosts efficiency.

At DJ Products, we help warehousing and logistics providers with automated material handling equipment. Devices like our warehouse tugs and powered pushers help close the gap between operational efficiency and the rigorous demands of profitability.

For 2016, the folks at Logistics Viewpoints have already identified several major warehouse and logistics trends to watch:

  • Sustainability will eventually be a part of your mission. Private companies can avoid public pressure longer than larger, publicly-traded companies. But emissions standards and landfill reduction will become a necessary action — and there are ways to find ROI for those efforts.
  • Omni-channel logistics is your next big move in fulfillment. As legacy software gradually becomes replaced, omni-channel technology will become the norm and business strategies will adapt to integrate.
  • Warehouse automation keeps disrupting. Warehouses continue to innovate with robotic and motorized tools such as warehouse tugs and powered pushers. This tech is now necessary to meet the demands of e-commerce efficiently.
  • Crowdsourcing will disrupt transportation. For delivery and transportation, many warehouses would be wise to leverage one of the new Uber-inspired outsourced delivery innovators instead of investing in in-house fleets and TMS.

Follow our blog to stay on top of the trends in 2016 and beyond. Ready to implement automation tools for warehouse and logistics efficiency? Visits DJProducts.com to learn about our warehouse tugs and powered pushers.

Volunteer to Speak at High School Career Day

High schools are starting to schedule annual Career Days. DJ Products encourages business owners and managers to call your local high school guidance department and volunteer to make a presentation. There’s been a lot of press over the past year about dwindling work forces in the material handling, manufacturing, fulfillment and warehousing industries. The need to educate young people about the career potential in our industries has been repeatedly stressed by industry leaders at national association conferences. We need to work now to encourage America’s youth to pursue careers that will benefit and ensure the future of material handling and the U.S. industries so vital to American commerce. High school Career Days give local business leaders a perfect opportunity to talk to America’s future workforce and encourage teens to seek careers in material handling, manufacturing, fulfillment and warehousing.

Partnering with high schools through Career Day, internships and technical training programs are among the nationwide efforts being made to draw future workers to material handling and other industrial careers. A unique partnership in Rock Hill, South Carolina could serve as a model for similar programs across the country. In sponsorship with the Material Handling Industry of America (MHIA) and the Material Handling Education Foundation Inc. (MHEFI), Rock Hill Schools are set to open the Don Frazier Supply Chain Training Center at the end of April. A new addition to its Applied Technology Center, Rock Hill’s new entry-level pilot program will allow high school students to learn by doing in a state-of-the-art, fully equipped, 4,000 square foot warehouse and distribution center, according to a MHIA press release.

Named for industry pioneer and program supporter Don Frazier, founder of Frazier Industrial Co. headquartered in New Jersey, the Don Frazier Material Handling Technical Training Program will provide hands-on learning in material handling and supply chain jobs to high school students in grades 9 through 12. Numerous local and national industry leaders and suppliers contributed to the start up of the Rock Hill program. Modeled after the prestigious Lehigh Career and Technical Institute program at Lehigh University near Allentown, Pennsylvania, it is hoped that the pilot program will serve as a model for the development of similar programs at high school technical centers across the country.

Warehouse Robots May Become Your Best Employee

Smiling worker in warehouse
Your Next Employee May Just Be A Robot

As a task automation tool, warehouse robots serve as both an inexpensive “employee” and a method of improving your warehouse efficiency for everyone.

The BBC checked in on a new robotic dolly that reads orders and moves to the correct location. The robot does not handle the picking and grabbing, but it does move the loading cart into the right position so a human passerby can simply place the item on the cart.

If your warehouse does not use automated material handling solutions, your workers are handling the full physical exertion of every aspect — pushing or pulling the cart, lifting and loading the item, and moving the heavy cart from a standstill.

The Growing Value of Automation

Motorized industrial tugs are a commonsense solution for improving warehouse efficiency. No need to reinvent the wheel with a system designed for robots rather than humans. Motorized carts simply help workers get more done in less time, with less injury risk.

Humans can efficiently and accurately read an order and pick the correct item — but the strenuous, repetitive task of moving the cart slows down the process.

The new British robots require that a human happens to walk by and pick the item. Industrial tugs have an efficiency advantage — the worker simply directs the motorized cart from location to location.

Take away the strain of moving warehouse equipment and speed up the process, and your human employees will perform even better thanks to industrial tugs.

For more info about motorized cart movers and cart pushers, visit DJProducts.com and discover how you can reduce injury, boost productivity, and get more done at the warehouse.

Is Your Warehouse in Trouble? A How to Know Checklist

Puzzled Confused Lost Signpost Showing Puzzling Problem
Is Your Warehouse In Trouble?

Discovering a problem inside your warehouse should be considered a good thing — you know what to fix! The tricky part involves figuring out the hidden causes of lost productivity. Once you know what’s wrong, you can take action to make the warehouse more efficient.

Operations expert Dave Piasecki has a helpful checklist of warehouse problem symptoms to look for. Some frequently overlooked problems include:

  • Equipment damage
  • Worker injuries & declining productivity
  • Cleanliness and organization
  • Low morale

Some problems, like inventory errors, can be easily spotted in the numbers. But what if workers are slowing down and performing below expectations because of an inherently problematic process? That’s when it’s time to focus on the process itself.

Improving the Process, Implementing New Tools for Warehouses

As Piasecki says, you only need to analyze so much. You need to implement solutions.

Do you need a drastic overhaul? Probably not. Instead of worrying about elaborate changes, streamline the material handling process with better tools for your workers.

Powered industrial tugs improve warehouse efficiency for each individual task, and for the staff as a whole. Replace the tiring, injury-riddled problem of manually pushing carts with motorized tugs, and a worker can accomplish more in less time.

Over the long haul, your workers will maintain a higher level of productivity thanks to fewer injuries and less energy spent over the course of a day’s work.

Then there’s a ripple effect: inventory and equipment get moved more efficiently, so managers, receivers and everyone else can do their job with less back-up and stalling.

Ready to solve the problems plaguing your warehouse? Start with industrial tugs from DJProducts.com.

Part 6: Why Businesses Fail, the Conclusion

Today we conclude our six-part series on Why Businesses Fail (see our posts starting July 14). One of the primary reasons businesses fail is:

  • Faulty attitudes and objectives. Businesses fail when personal or company desires are placed ahead of customers’ wants and desires. You don’t run your business; your customers run your business. Customer satisfaction is the single-most important factor in driving business and repeat business to your door. Businessmen who forget that don’t remain in business long.

    Employee satisfaction goes hand-in-hand with customer satisfaction. When businesses fail to value their employees, employee satisfaction plummets, taking with it production quality and efficiency and customer satisfaction. It’s a downward spiral from which businesses don’t recover without an attitude adjustment. The bottom line is that it’s the human element that guarantees business success.

DJ Products understands the value and importance of customer and employee satisfaction — both ours and yours. That’s why we manufacture and use ergonomically designed electric carts and motorized cart pushers and equipment movers. Our equipment is smaller, more maneuverable and less costly to purchase and operate than traditional powered equipment like fork trucks, walkies and riding tugs. And our equipment is designed to eliminate the pain and strain of manually moving heavy carts and wheeled equipment. We value the health and safety of our workers — and yours.

DJ Products’ expert sales staff can assist you in assessing your material handling needs. On our website you’ll find a handy Ergonomic Load Calculator designed by experts to estimate the amount of horizontal force needed to move wheeled loads. Our sales staff can help you calculate load factors and recommend material handling products designed to protect the health and safety of your workers. Visit the DJ Products’ website for detailed specs on our complete line of products. If you have a material handling problem, DJ Products can provide the solution.

Logistics Industry Down But Not Out

Considering the state of the economy, it’s not unexpected that the logistics industry is suffering along with everyone else. According to the recently released Global Contract Logistics 2009 report published by Transport Intelligence, the global contract logistics market grew at a rate of 5% in 2008, half the 10% growth experienced in each of the past few years. Of greatest concern was the noticeable drop in volume during the fourth quarter, generally considered the industry’s peak season.

“This downturn has been felt well into 2009, although there are signs that the fall in volumes may well have bottomed out by the end of the first quarter, the report suggests,” logistics industry analyst Ken Hurst noted in today’s posting on Works Management online.

Increasing, global reach provides the greatest opportunity for future success in the logistics industry, particularly when U.S. markets go stale. Developing markets in Latin America, Central and Eastern Europe and the Asian Pacific region offer the most opportunity for future growth, according to the Ti report. While the China market has cooled recently, Hurst expects it to rebound, saying, “… with GDP growth still in the high single digits, and a $585 billion stimulus package taking effect, underlying economic activity will continue to drive its [China’s] logistics sector.”

The report predicts five more years of volatile swings in the logistics industry worldwide with significant recovery not predicted until 2011. Rebuilding is expected to be agonizingly slow. According to Hurst’s post, “Ti believes that the market will grow at a compound annual rate of 2.4% between 2009 and 2012.” Stabilization of the industry will depend on the speed with which global sales increase. Until consumer confidence returns and drives up demand for goods, manufacturers and retailers will continue to keep supply costs lean. Because of its position at the tail end of the supply chain, the logistics industry may be one of the final economic sectors to achieve recovery. While contractual relationships will protect some logistics companies from the worst market volatility, “logistics providers will have to work hard at increasing their value proposition to clients if they are to avoid the worst excesses of the recession,” John Manners-Bell, Ti CEO told Hurst.