Shop Talk

Low Cost Ways to Boost Labor Performance in the Warehouse

This week I’d like to share a great article from supplychainbrain.com about increasing labor performance in the warehouse.  There are some great points brought up here.  You’ll have to comment and let me know what you think.  What’s working for you?  What’s not?
There is a fundamental but often misunderstood difference between labor productivity and labor performance, says Steve Hopper of The Progress Group. He explains that productivity is a raw statistic often measured in units per hour, while performance is measured as a percentage of what an average worker would accomplish.
Performance is a fairer way to measure workers, he says. “For example, think about measuring the productivity of two people working on an order-picking line who were supposed to pick 220 lines per hour. If one is picking anvils and the other is picking feather pillows, it is not a fair comparison. But when we set up a standard based on the content of the work, the worker can be measured more fairly.” Having a fairer form of worker measurement makes for a better work environment and happier employees, he says. “Workers thrive in an environment where they feel they are being measured fairly and accurately and where they are rewarded and empowered to do their jobs.”
Hopper says there are three factors that determine the performance of a worker: the method, technique and tools that a worker uses to perform a function; the pace at which he works; and time utilization, or the amount of time actually working vs. engaged in other activities. Companies wishing to improve labor performance need to address all three, but remedies do not have to be expensive or complex, he says.
“Often companies don’t take the time to evaluate how a worker is going about a task,” he says. “Sometimes simple, little changes can improve a worker’s method at little or no cost.” Using industrial engineering or crowd engineering techniques can improve elements of the job without investing in software or systems, he says. “It’s about finding the smartest way to perform a job.”
Better training, proper incentives and labor management systems can all help, he says. “But the very best thing a business can do is talk to and spend time with their associates. Don’t sit in an ivory tower. Ask the associate what is the right way to do the job and what tools and techniques will make them more effective.”

So what do you think?

www.adeptivsolutions.com

What is a Multi-Channel Experience?

Adeptiv Solutions understands that your customers place orders through different channels, and also need support through their chosen method of communication.

What is a multi-channel experience? It’s the experience a customer has of a brand gained from all interactions through managed and unmanaged points for the duration of that relationship.An example of customer engagement would be the repeated interactions that strengthen the emotional, psychological, and physical investing that a customer has in a brand. When coming up with a multi-channel strategy, there are several challenges.

The first challenge is that we’re in an increasingly attention deficit society. People sometimes need to be consistently reminded in order for them to act.

Secondly, we live in a “I want it now” society, which means that if we can’t get it instantly, we’ll go somewhere else.

Thirdly, there is a challenge of monetization.  How do you make the money you need with what you’re doing?

Here are three possible approaches to creating a multi-channel strategy:

1.) Choose your channels– strategic criteria for channel change and adoption (experience, pre-emptive strike, access, risk, and cost)

2.) Design your channels

3.) Create a plan

For information on how Adeptiv Solutions can help enhance your business operations, feel free to contact us at www.adeptivsolutions.com

Considering a 3PL Fulfillment Service?

Is your business looking for a 3PL company for warehousing and product fulfillment?  In a recent article, Freight Dynamics came up with a list of tips of common mistakes to AVOID when choosing a 3PL.  I thought it was worth sharing.

Feel free to comment on the blog site and let us know which ones you like and possibly what was omitted.
1.) Share targeted volume to get better negotiated rates.  Negotiate up front before you start any business relationship by providing all the estimated facts you know of such as your freight shipping patterns, how much warehouse storage you will need, which warehousing services you may utilize, and so on.
2.) Create difficult SKU’s which can be confused.  Create easy to use SKU’s (stock keeping units) and descriptions. Example of what not to use: “SF-01-KY-LG-NY-GY”. Instead use LrgGrey107. Abbreviations become redundant and can cause picking errors. Keep it simple.
3.) Not asking them for ideas or feedback
Many times, customers not familiar with kitting, assembly and fulfillment don’t provide the whole picture up front and get charged more for being unorganized. This is what we specialize in and do day in and day out. We are the experts. Tap that free advice. Also – don’t ever be afraid to ask questions! This is your inventory!
4.) Not viewing them as a partner
Your Fulfillment 3PL is a direct extension of your company. Select a company who mirrors your same values and attitudes.
5.) Not sharing requirements up front
Many companies, such as Target, Best Buy, Wal-Mart, and ShopNBC, have very specific casepack and labeling requirements which need to be followed or serious chargebacks can occur. Provide your fulfillment services with this information in full before beginning any projects with large company end users.
6.) Nickel and Diming them on every issue
Don’t throw out the baby with the bathwater here. Negotiate on the bigger items such as monthly storage or order fulfillment. Labeling for example requires actual labels, ink, and labor — it’s a service that needs to be covered.
7.) Use cheap packaging
Your carton packaging says a lot about the quality of your brand. Using 2 ply cartons over 1 ply costs about the same, but provides much better protection in the shipping environment. Also take advantage of having your logo SKU and description printed right on your cartons. Many claims arise when customers use insufficient packaging. Always invest in the best possible custom packaging depending upon the fragility of your product. If it is damaged, there is no doubt you will be reimbursed, and the odds of it getting damaged drop considerably.
8.) Use cheap shipping carriers
This may save a buck or two up front, but it always bites you in the long haul. LTL ‘Break Bulk’ freight shipping carriers handle your shipment many times before its delivered, sometimes resulting in damage to your product. If they don’t honor claims and destroy your product, then what have you saved? Insist on reputable carriers that go direct, not carriers with numerous hubs they consolidate with.
9.) Don’t renegotiate when your business model changes
Many businesses change over the years as a client needs change in an ever changing world. Don’t be reluctant to send your provider an RFP with a few other reputable companies to keep your pricing in check.
10.) Leave out descriptions and reference numbers with new inbound receipts
Remember garbage in equals garbage out. Provide the SKU, description, qty, casepack, number of pallets, and job number for each pallet you send over in an easy to read packing list.
For more tips, contact www.adeptivsolutions.com
(Source: Kevin Scarpati)

Six Warehouse Management Tips

If you Improve your warehouse management you’ll enjoy an overall improvement in your supply chain. Improving your supply chain means getting goods to your customers more efficiently, and at higher profit margins to you. Smart warehouse management is the single best way to achieve this.

Here are some tips to increase your productivity and cut down on your labor costs:

1.)  Train your employees properly and you’ll enjoy a far more productive warehouse system. If you do this, the warehouse manager can focus more on working on improving the system, instead of having to supervise employees, and making sure they’re doing their job.

2.) Use the proper tools for the warehouse. This will increase productivity. Make sure you have the right tools on hand for your employees, and that there are enough of them available.

3.) Maintain what you have. Perform preventive maintenance on your tools and machinery to ensure they are running safely. Not only will this help increase productivity, it will also make your warehouse a safer place to work.

4.) Take advantage of smart planning with warehouse slotting. Most of the time spent in a warehouse by day full-time employees is spent traveling around the warehouse itself. With the proper slotting to the warehouse, you can cut down traveling time by up to 10%. This means that you cut down labor costs by 10% as well.

5.) Consider different software options to help you better track data in your warehouse, enabling you to make smarter decisions on your inventory. You’ll get more accurate feedback if you allow computers to track and perform calculations on the supplies in your warehouse.Software lets you automate the process of stocking as well, to assure you don’t run out, but that the same time overstock materials.

6.)  Consider specialized technology that is appropriate for the size of your warehouse. If you have a large warehouse, then you should utilize RFID technology, to completely automate data entry. There are also other options available for larger companies such as Warehouse ERP software, used to integrate all aspects of the business and supply chain into one manageable software.

These are some general tips on how to improve the management of your warehouse, and enhance the overall experience enjoyed by the customer.

For more tips, contact Adeptiv Solutions!  www.adeptivsolutions.com