It is hard to see the forest through the trees sometimes. In our world (Distributors and Manufacturers), the trees that block our view are the pressing demands on a Distribution or Plant Manager. You all know them well as they are routine in nature:
· Hiring enough and the right type of associates.
· Making sure we are meeting our customer service expectations.
· Keeping up with new products, new acquisitions and promises made by our sales force.
· Finding the space to accommodate growing business requirements.
· Adapting to increased e-commerce needs that accompany society’s changing purchasing behaviors.
When you are blocked by the trees, we all tend to handle these demands ourselves using the path of least resistance. As our SKUs increase in volume and in number, it is easy to continue to find empty spaces, hire new people and do things the same way until it starts to affect our customers. Once our customers become affected and the top and/or bottom line reduces, the praise you once received for doing more with less is replaced with questions about how you are going to fix it.
Although the economic slowdown is continually in the news, I have met more than a few companies that are growing 10, 20 and 30 percent year over year. Many of these companies do not employ the sophisticated metrics developed and available to larger companies so where do we begin?
An essential beginning is to understand our SKU’s (Stock Keeping Units). It is valuable to know the dimensions of your product (length, width, height and weight). Additionally, the same dimensions for the case we traditionally pick out of if other than case quantities. Since most companies know their sales data, we look to understand the demand and the size requirements to store and pick. If you don’t have time to do this, hire someone to help you see the forest.
Stepping back from tress, looking at your product speed, dimensions, replenishment requirements and future growth projections will allow you to redesign your picking operation to replenish less, travel less, use floor space better and reduce current and future labor.
If you are blinded by the trees, hire a lumberjack to help you cut them down.
For more information from Greg, view his page at www.trifactor.com/greg
For more information from Greg, view his page at www.trifactor.com/greg
