While it’s true that the functionality and productivity of DC operations are under constant pressure to do more with less, adding new technology on top of what you already have may just add another layer of complexity to the mix without taking full advantage of what is already in place.

Eventually, you come to a point where you need to check for diminishing returns. This is the point at which you decide whether the addition of one more feature, component, or subsystem will result in a benefit, or will just add cost and complexity.

Now you can gauge your current DC’s relative complexity by using the newly developed Supply Chain Digest DC Complexity Calculator™. Free to our readers, this easy to use tool will provide a numerical value for comparison purposes.

Searching For Hidden or Forgotten Features

In an expanding operation, it’s not unusual for DC logistics managers to consider the pros and cons of adding more picking/shipping capacity. At some point most DCs go through such an examination to discover and eliminate inefficiencies.

However, before seriously considering adding new equipment and/or functionality, examine what your present technology may already offer that could help solve the problem. In other words - are you using the technology you already have? This is not as dumb as it sounds. You may be surprised at how many systems have imbedded technology (initially provided by the system vendor) that is not currently being used. Uncovering embedded capability may be as simple as asking your MH system vendor how to squeeze more capacity out of what you already have.

This is a smart thing to do because most MH suppliers include extra features in their offerings that are not enabled during initial installation because the operation didn't call for them at that time. These features provide the scalability and flexibility customers’ demand in equipment and systems. But, as the saying goes, ‘use it or lose it’ - if you don't use these built-in features, over time you’ll forget they exist. New management may not even be aware of their existence.

A good example can be found in the typical shipping sortation system. Most of these systems are capable of providing higher sorting rates than what was initially required. This is often done deliberately so as to provide for future growth. With a few simple changes, like changing the ratio of the drive sprockets and re-calibrating the sorter tracking system (usually done automatically), higher speeds and sorting rates can be achieved. Another example would be fine tuning controls to reduce gaps between cases at critical merge points and on the sorter, which will immediately increase throughput capacity.

Industry experts know that often times real payback can be found in thoroughly examining order processing, and smoothing out the peaks and valleys in receiving, inventory, picking, and shipping systems. Streamlining processes and turning on embedded features may be better alternatives to adding more technology and complexity, and, they are usually far less expensive.

Final Thoughts

It could be that the additional capability you need is already in place, just waiting to be turned on. Examine what you have and check with your suppliers to inquire about those embedded features and capabilities.

Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

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