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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

September 19 , 2012



Does Your Company Environment Foster Ideas that Drive Continuous Improvement?

Top Performing Companies are Committed to Logistics & Material Handling Excellence


It has been my experience that in top performing companies it’s always true that senior level managers play a key role in the successful development and implementation of technologically advanced improvement projects.

The corporate attitude towards material handling operations starts with senior management challenging operating management to find creative solutions to material handling issues. They want projects that will provide substantial benefits such as:

Holste Says:

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Senior level management must embrace continuous improvement initiatives by spelling out long-range objectives to mid-managers, planners, industry consultants, and system integrators in terms that they can relate to.
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• Higher picking and shipping throughput capacity

• Optimization of inventory and storage space utilization

• Lower per piece handling cost

• Shorter order processing cycle times

• Greater value-added services capability

• 100% order accuracy

• Elimination of shipping charge backs


However, the above benefits will not be realized unless senior management actively promotes an environment that encourages others to come forward with creative improvement proposals.

All too often astute individuals who are eager to propose projects involving the application of advanced concepts in material handling technology are discouraged by middle managers who tell them that it’s “too risky - the front office won’t buy it”. Some of these companies may eventually come to realize they are stuck in a 1970’s type warehousing time-warp where paper-driven order picking is done with clipboards and pushcarts.

The track record for deployment of advanced material handling technologies has been excellent over the last few decades. This reality has gone a long way towards overcoming the FUD factor – Fear, Uncertainty and Doubt.

Senior level management must embrace continuous improvement initiatives by spelling out long-range objectives to mid-managers, planners, industry consultants, and system integrators in terms that they can relate to. A CEO who has never received even a preliminary proposal involving creative approaches to warehousing, order processing, and material flow issues should look for answers to the following questions:

  • Is the company’s current logistics capabilities competitive and keeping pace with changing market and customer service demands?

• Has the company’s approach to warehousing and distribution remained static through the years?

• Is there any indication that mid-level managers’ turnoff discussion of improvement projects involving application of advanced technologies?

• Is the company’s IT department adequately staffed to handle such projects?

It’s interesting to note that in companies with a history of maintaining the state-of-the-art in application of material handling system technologies, projects of that type are most often originated with experienced professionals working at the senior level who have that responsibility. They may be internal consultants/advisors, or an outside independent industry expert.


Final Thoughts

It is important to understand that while your business is unique, the system concepts and equipment technology that will be most beneficial for your operation is not new. It is most likely providing cost and operational benefits to your competitors’ every day.

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