When poor DC system performance is suspected, one thing is certain – doing nothing guarantees that the situation will not improve and most likely will get worse. Oftentimes, the issues that contribute to poor performance are obscured by the routine of day-to-day business. There may be a general feeling or sense that DC operations could be improved, but the imperative to find and fix the problems is low.

Without a continuous improvement initiative in place, there may be no disciplined way to uncover deficiencies until a crises occurs.

After discussing this situation with several DC mangers, we thought that it would be helpful to develop a list of poor performance symptoms that could be corrected without causing disruptions to on-going operations and that would yield immediate benefit.

Holste Says: It's a good idea to remember that given the constant changes taking place throughout the consumer marketplace, new operational problems and issues are going to popup frequently. Therefore, having a disciplined continuous improvement approach for resolving them is essential. What Do You Say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

Adopt A Systematic Planning Approach

When poor performance is suspected, first investigate and collect data at the source of the problem. Make sure a specific problem isn’t a symptom of a still far greater problem perhaps more serious in nature. Sometimes it’s the subtle problems which sap the operation’s vitality. Dig deep. This sometimes requires outside help from an industry expert. Take enough time. Set a realistic schedule.

The following are the steps that are required to properly define and correct a poorly performing operation:

1. Investigate and assemble pertinent data
2. Analyze the data
3. Apply proven operational and processing principles
4. Develop and test potential solution(s)
4. Integrate solution(s) organizationally through a comprehensive training program
5. Evaluate results and fine tune

For the larger and/or more complex operations there will be a tremendous amount of data to be collected. Getting everyone’s input can be a time-consuming effort spread over days, if not weeks. This “in–the-trenches” work needs to be done in order to uncover the not so obvious contributing factors. Once all the input has been collected and documented, data analysis, preliminary engineering, and economic justification of the probable solution(s) can be completed. Moving ahead too quickly defeats the whole systematic approach and can ultimately defeat the effort.

It’s a good idea to remember that given the constant changes taking place throughout the consumer marketplace, new operational problems and issues are going to popup frequently. Therefore, having a disciplined continuous improvement approach for resolving them is essential.

Final Thoughts

It takes ingenuity to stay ahead of competition in this highly competitive global market place. It’s important to know in advance where the operations potential vulnerabilities are. One suggestion we received from a veteran ops VP is to involve an employee(s), who is not specifically connected to the operation or department being scrutinized, and who therefore, can provide an “off-the-wall” idea with impunity. It’s the “can’t see the forest for the trees” idea.