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About the Author

Cliff Holste is Supply Chain Digest's Material Handling Editor. With more than 30 years experience in designing and implementing material handling and order picking systems in distribution, Holste has worked with dozens of large and smaller companies to improve distribution performance.

Logistics News

By Cliff Holste

May 9, 2012



Is Your Decade Old DC Up-to-Date?

Avoiding Operational Obsolesces in Times of Rapid Change


Distribution Centers equipped with mechanized material handling systems that have been in operation for 10 years or more are most likely at the point where many of the internal systems need to be updated. It is very likely that the company’s business model has undergone several changes since the system was commissioned. New marketing channels may have been developed and new product lines added. No doubt customer order profiles have changed; order fulfillment times have decreased while the demand for value added services (VAS) has increased.


Holste Says:

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When faced with evaluating and updating the perfor-mance of an existing material handling system operation, especially for the first time, companies interested in a do-it-yourself approach are well advised to bring onboard an industry expert.
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In addition, big changes may have take place in the products being handled by the system. These product changes include: increased population of small light weight cartons; increased use of stretch-wrap material (in place of cardboard cartons) that may not have a hard bottom surface suitable for transporting on powered roller conveyor systems; vendor changes to product identification symbology and label placement.

Order fulfillment logistics companies provide a service. Therefore, it is critically important to know that DC operations are up-to-date and capable of satisfying both current and foreseeable future requirements efficiently and at a competitive cost.

Methods & Equipment Evaluation Process

Upon reaching this point operations managers often find themselves being pulled into the current methods and equipment evaluation process. While the shortcomings of a poorly performing system are generally easy to recognize, it’s important to note that when material handling systems with a high degree of complexity fail, it’s rarely related to any particular piece of equipment provided with that system. Problems with equipment are readily solved by replacing, repairing or adjusting components. Problems with antiquated system design, software, and controls, however, are not so easily diagnosed and corrected.

Most companies know when their operation is in need of a major update. Knowing what needs to be done to update and improve the performance capability of an ongoing system operation is one thing; knowing how to implement those changes and make it all work without prolonged interruptions to the operation requires a high level of system design knowledge and integration expertise – see “Conveyor, Sorter, and Operational Modifications Yield Expanded System Capability & Performance”.

When faced with evaluating and updating the performance of an existing material handling system operation, especially for the first time, companies interested in a do-it-yourself approach are well advised to bring onboard an industry expert. Search for someone who has been down this path many times before. Hire someone who can offer an independent, objective analysis with a broad spectrum of solutions. The person and/or firm you hire must have firsthand knowledge of the material handling industry and direct access to qualified system solution providers.



Final Thoughts

It’s good to remember that customer loyalty has its limits. When a logistics company’s operations are no longer responsive to the needs of its customers, those customers will be forced to look for a better alternative. Keeping up-to-date with marketing and customer service trends through the adoption of appropriate strategies and technologies promotes growth and is the best insurance against obsolesces.


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