Holste Says: |
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| It is important to understand that while a company's business model may be unique, the system concepts and equipment technologies that will be most beneficial for their operation is not unique. |
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What Do You Say?
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- Improved productivity in warehousing and distribution operations
- More efficient utilization of facility space, energy, and human resources
- Reduction of reserve and WIP inventory
- Increased order fulfillment speed and accuracy
- Higher throughput without incremental increases in labor
- Greater system flexibility and agility
- Reduction in overtime hours
- Reduction in errors, damage, shrinkage, and back charges.
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However, projects that will accomplish the above will not be adopted unless management actively promotes an environment that encourages associates to come forward with creative cost effective improvement projects.
This point cannot be emphasized too strongly. Because, too often astute individuals who are eager to start projects involving the application of advanced concepts, new methods or technologies are discouraged by middle managers who tell them that “the timing is bad” or its “too risky - the front office won’t buy it”.
To correct this impression, senior management must spell out long-range objectives in terms that mean something to operation managers, engineers and planners. A senior manager who has never received even a preliminary proposal involving creative approaches to improving logistics issues should look for answers to the following introspective type questions:
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- Is the company’s production expertise in balance with its warehousing and distribution capabilities?
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- Has the company’s approach to logistics remained static?
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- Is there any indication that warehousing and distribution managers automatically turn-off discussion of improvement projects involving application of advanced technologies?
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- Is the company’s IT department adequately staffed to handle improvement projects?
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