Warehousing Blog

Cash-to-Cash Cycles in Warehousing

noreply@blogger.com (AAlbright) — Fri, 22 Jan 2010 03:28:00 +0000

To run an efficient warehouse or third party logistics company, it is important to have cash available to conduct the day-to-day activities of running your business. The funds available for use for the day-to-day business is a measure based on the length of time the inventory is converted to cash. The faster the product flows through the cycle, the faster you have funds available to continue business.

The cash-to-cash cycle is the time that operating capital that is not available for use by your business. This makes it all the more important to fee up capital. To help you calculate the cash-to-cash cycles add the days that your cash is caught up in inventory plus receivables and deduct the days that cash is free for use. So, how do you get cash to be available faster? You need to lower inventory, force faster turnover of your inventory, which leads to a faster billing cycle. Important to the cash cycle is that receivables are processed immediately and collections conducted quickly so as not to delay income of funds. Also, consider delaying payment of debts, which equals additional operating cash. The idea is to pay upon the invoice due date rather than early. Those funds can either be used for additional operating funds or accumulate interest.

Ventilation for Warehouses

noreply@blogger.com (AAlbright) — Sun, 17 Jan 2010 01:08:00 +0000

Critical to the health, safety, and work performance of your employees is adequate air ventilation. Issues that typically arise in warehousing are air quality, air contamination, and humidity. Warehouses store toxic chemicals of every type, no matter how careful you endeavor to be, ultimately accidents do happen.

Prescribed air limits are regulated and accommodating that is important. For instance, for a heavy work environments it is recommended that at .5% liters per person per hour, required is 3.9 to 5.3 liters and for very heavy work environments 5/3 to 6.4 liters per hour. In addition is the importance of using commercial filtration systems to reduce air born infections, carbon dioxide, and humidity.

In order to achieve this or better, appropriate equipment is necessary. Ideal of course is fresh air that can be provided by fans, but for the majority of warehouses, more drastic measures are needed by the use of velocity extractor units that are attached to a wall or roof, which expels dust, pollen, bacteria, odors, smoke, and other forms of contaminants. The air must be changed often.

There is a multitude of options to select in ventilation systems. Important to the selection process is to consider the type of work done in the warehouse, what is stored, square footage, meeting regulatory standards and the welfare of all your workers.

Cargo Tracking

noreply@blogger.com (AAlbright) — Fri, 15 Jan 2010 02:07:00 +0000

Clients want immediate satisfaction whether that means getting his or her product immediately or knowing what day their product is to arrive at their door. One of the benefits of purchasing from a retail outlet, is the pleasure of immediate satisfaction of bring home that prize, so how do you compete if your primary source of business is through e-commerce? Give your customer a way to track their purchases.

E-portals are beneficial for both customer and third party logistics companies in several ways. First, it allows the customer to create and pay for their order, receive a tracking number, and see an approximate shipment arrival date. The customer receives a tracking number that gives them a way to follow their item from warehouse to delivery. This includes the package scanned for shipping, pick-up, location of the package in route, dropped off at a warehouse for continued shipping, and finally arrival.

With the aid of the right software, there are benefits for you as well. A web-based ordering system allows for automatic processing and order confirmation via e-mail. You are able to view up to the minute transactions, product inventory, stock balances, and payment confirmation. A detail analysis is possible, because of the integrated reporting systems.

Robotic Manipulator Arms

noreply@blogger.com (AAlbright) — Sat, 09 Jan 2010 22:07:00 +0000

The twentieth century brought amazing progress in all areas of manufacturing and research. Essential to many third party supply chain organizations and warehouse and distributions centers is the robotic manipulator arm with articulated joints that is typically powered by electricity. They used in many industries such as auto building, warehousing, operating room, scientific research, and manufacturing.

Manipulator arms are precision tools that can be custom designed to accommodate virtually any need of the client. Handling can be programmed to work autonomously for repetitive duties or manually as an extension of your hands. It is used for grabbing with jaws, rotating, rope cutting, and telemetry. Manipulator arms come in self-bearing models, attachments, and repositionable.

Types of manipulator arms include picking and moving arms that can use magnets, suction cups, and claws to move a variety of products including pallets of boxes, sacks, reels, and bobbins. Articulated arms are used for welding, assembly, repetitive movements and motions.

Robotics arms can be customized to suit your needs. Although, there is a substantial initial investment, over the course of time you see a reduction in general workers’ compensation claims because of accidents or repetitive movements as well as increased accuracy, efficiency, and time saved.

Performance Appraisals Can Be an Effective Tool

noreply@blogger.com (AAlbright) — Thu, 07 Jan 2010 03:41:00 +0000

It is unfortunate that many managers do not use performance appraisals as effectively as they could. Unfortunately, many supervisors emphasize the negatives rather than focusing on the many positive accomplishments made by an employee. Another problems that occurs is that many managers really do not have a good grasp of the job the employee is doing, primarily because there has been no expectations established throughout the year prior to the review. The employee may have a completely different view of his or her expectations and goals than the employer, and it does not become apparent until review time or there is a disconnect.

A performance appraisal can be a useful tool to review work history and accomplishments. Problem areas should have been addressed well in advance of review time. Make sure to put a positive spin and talk about possible solutions to issues rather than telling the individual everything is bad. For example, if an individual has difficulty prioritizing work, then consider a weekly meeting to help with addressing with prioritizing.

Sometimes, employers will conduct employee reviews for individuals within particular responsibility group, such as mid-manager, however it is important that you spend time with every one of your employees from pickers and packers to warehouse managers. Reviews should be used as an opportunity to both encourage good behavior and constructively address problem areas. Conducting annual performance reviews does not have to be a bad thing.

E-commerce and Marketing

noreply@blogger.com (AAlbright) — Sun, 03 Jan 2010 04:32:00 +0000

The popularity of e-tail is beyond description and plays a vital role for many retailers both the traditional and e-commerce focused only. Without the overhead, successful e-tailers have higher profit margins; leaving the overhead to third party logistics and warehouse companies to handle the manufacturing and distribution and allows you to focus your energy on what your company does best.

Successful retailers have several aspects of promotion in common and those include:
· The use of shopping portals
· E-marketing, which includes the use of email distribution lists, email alerts and marketing
· It is essential that your marketing message is included on all levels of your website in an effort to ensure that information is made available no matter what page the customer is directed
· Web content management, which includes, among other things, the use keywords and phrases, back links, and most importantly links are directed to the appropriate location for a good shopping experience
· Misdirection to the wrong web page is quite irritating for the customer and can jeopardize the relationship and bottom line
· A poorly developed website can be the death of an e-tail business. A custom designed website, which is attractive, user friendly, includes a shopping portal, and links that work properly is very important
· Critical is search engine optimization
· Important is to research the market including seasonal search and market trends
If you are not knowledgeable about creating a workable web site or an IT Department, then consider out sourcing to a company that specializes in developing e-commerce websites.

Meeting the Customization Needs of Retailers

noreply@blogger.com (AAlbright) — Thu, 31 Dec 2009 03:57:00 +0000

Many large companies have a variety of needs to meet for their customers. These needs include shipping in bulk and merchandise that requires pick and pack, meeting compliance requirements, private labeling, as well as cost effectiveness, efficiency, and timeliness of deliveries. These customizations are costly, so organizations resort to third party logistics companies in order to accommodate the needs of large as well as smaller, mom and pop shops. Companies are using warehouse management companies that have the ability to customize according to the needs to the retailer.

In order to provide the global logistics services needed, the organization you employ must utilize a strong customization department, which includes over sight of quality control, documentations, accuracy of materials handling and shipping, inventory accuracy and rotations, product rotation, and meeting OSHA and MSDS requirements. Flexibility is of utmost importance when you need to provide services to a multitude of customers. In an effort to sustain high quality and lower cost, organization see the use of outside supply chain companies or warehouse distributers as a cost effective way to meet the challenges of an ever change industry that requires constant updating, new computer systems, continuous documentation, changing levels of distribution, and differing packaging and delivery requirements.

Emergency Response Team

noreply@blogger.com (AAlbright) — Thu, 24 Dec 2009 02:22:00 +0000

Emergency response directives do not begin or end with information systems or business revitalization. It includes immediate emergency response to protect your employees and continue care for a short period if needed in the event of natural disaster or attack. The size of the emergency response team is determined by the size of your organization.
The team includes a team lead and several team members. Essential in the process includes an action plans in the event of fire or other issues that may arise.

Warehouse action plans take into account what is to be done in the event of a fire, earthquake, flood, etc. Plans include:
· Maps posted throughout the building demonstrates paths to exits
· Emergency lights and lighted EXIT signs
· Appropriate gear that shows that you are part of the response team
· A designated meeting area away from danger
· First Aid and CPR training
· Evacuation plans
· Contact the fire department and plan evacuation plans
· Communication with employees within your organization explaining the process
· At a minimum, three days worth of food and water for every member within the organization
· Emergency gear can include flash lights, transistor radio, back packs for each emergency responder filled with appropriate gear to assist individual, first aid supplies, CPR mouth guard, Willkie talkies are useful, additional batteries
·
Ideally, the team members should meet once a month to review and revise action plans. Practice evacuations with both team members and employees quarterly. It is important to reinforce to employees the importance of participation and not to ignore evacuations at any time.

Searching for NAFTA Requirements

noreply@blogger.com (AAlbright) — Wed, 23 Dec 2009 03:01:00 +0000

The North American Free Trade Agreement (NAFTA) has forever changed how you import and export your goods throughout North America, ultimately affecting third party logistics. NAFTA was created to help eliminate trade barriers and improve transport between the United States, Canada, and Mexico by improving security and facilitating the flow of travel and trade between the three countries . NAFTA is an integration of both bi-lateral and tri-lateral agreements. For instance, the U.S. and Canadian bi-lateral agreement makes transport between countries easier and the transition has been relatively easier than between Mexico and the U.S. The U.S. has invested over 20 million dollars to help Mexico update and make the transition.

In an effort to protect North American goods from outside forces, heavy tariffs are levied against products that are imported from outside North America. NAFTA has also provided important concessions, such as safeguarding against imports that threaten each ones domestic producers. Additionally, sanitation measures have been instituted anything-affecting animals, humans, and agriculture.

On that note, the website for the U.S. Department of Agriculture is available to help you find information about basic exporting, acquiring permits, export financing, USDA Animal and Plant Health Inspection Services (APHIS) import and export information, and the U.S. Commodity Association supplier list. For additional information, visit the website at http://www.fas.usda.gov/.

Commercial Warehouse Cleaning

noreply@blogger.com (AAlbright) — Sun, 20 Dec 2009 03:02:00 +0000

Along the lines of food sanitation is warehouse sanitation. I spoke about sanitation of food products traveling though the third party logistics chain. Running a warehouse requires organization and cleanliness. Unless you have staff that handles all the aspects of keeping your business on the straight and narrow, it is likely that at some point you will hire a cleaning company to take care of your company. Some cleaning services handle residential homes and others deal with commercial property. Keep in mind that cleaning companies that say that they deal in commercial cleaning may be talking about office buildings, which do not require the same type of attentions as a warehouse or manufacturing plant.

For instance:
· Concrete flooring may not only require cleaning but also removal of stains and repair of cracks. Warehouse cleaning crews use sand blasters and acid wash to achieve results
· Carpets and upholstery may not only need vacuuming but also shampooing and stain removal, along with antistatic application
· The staff needs to be large enough to complete its business during closing time or in shifts to accommodate 24/7 manufacturing
· Cleaning of grounds and parking lot
· Washing windows both inside and out, which can be a challenge with the building that consists of thousands of square footage
. Not all warehouse-cleaning services are created alike, so ask for referrals from other warehouse managers, and check with your local Better Business Bureau as well as current licensing bureau.

Food Sanitation

noreply@blogger.com (AAlbright) — Sat, 19 Dec 2009 02:17:00 +0000

Food sanitation and safety is a growing concern both in the United States and abroad. Food safety does not begin at the warehouse or manufacturing level of food transport to the consumer. It begins at the farm. As a buyer, you have the right to know if the food that comes to you is impeccable. One concern includes the use of reclaimed water, which is formerly wastewater that is treated. Although the water has gone through a water treatment process, studies have shown that people can ingest harmful pathogens. Other concerns at the farm level include clean equipment, maintenance, moisture deterrence, and cleaning practices.

Once the food is transported from the grower to the warehouse or manufacturer, it is imperative that appropriate measures are taken to ensure cleanliness. Areas of concern include maintaining a rigorous cleaning regimen, sanitation verification, and installing equipment such as filters, screens, or magnets to detect metal fragments, specifically structured to deter food contamination.

Along the entire supply chain, continual product testing, inspection, and compliance with food safety procedures is essential. Helpful to maintaining the utmost in food sanitation is documentation, training, continual process improvement, and third party audits conducted by individuals that have experience with the food processing industry.

Authentic UPC Codes

noreply@blogger.com (AAlbright) — Sun, 13 Dec 2009 02:50:00 +0000

Use the right UPC codes for its intended purpose. First, determine the type of code that you require. The code you purchase is determined by the need. For instance, The GTIN Global Trade Item Number is used for items or services that are bought or sold. These are products that requires a price, can be ordered, or require an invoice at any point within the supply chain. The bar code is linked to pre-determined information about the item within a global network.

The SSCC Serial Shipping Container Codes is used for tagging items that are used for transport and storage within the supply chain.

The GLN Global Location Number is used to identify the physical location and legal entity associated with the product. This type of coding helps to improve communications. This system is integrated with the Global Data Synchronization Network.

Important to all this is to purchase a UPC code that that is issued by a legal sources known as the GS1. Once bought, the UPC code is your asset and can be reused as needed. It is valid worldwide. Because a UPC code is a unique code, it is registered with the Global Trade Item Number Registry, which is the GEPIR Global Electronic Party Information Register: a database that contains information on over a million companies in over a 100 countries.

The Appropriate Attorney for the Job

noreply@blogger.com (AAlbright) — Fri, 11 Dec 2009 05:03:00 +0000

The importance of reviewing or writing strong contracts between yours organization and vendors or customers is vital. If contracts are one sided between your warehouse and a vendor, then you may run into difficulties releasing that vendor should quality or dependability become substandard. The same holds true for employment policies and procedures. Although, there are established federal regulations about labor standards, each state also has its own set of labor laws.

Attorneys are not one size fits all. Although, it would be ideal to have one lawyer handle all our company’s issues, reality is quite different. Attorneys are trusted consultants and each specialize in a specific field or industry.

Although you may be tempted to use an attorney that is well known to you and your business associates that has aided you for other issues in the past, it is best that you hire a lawyer that is knowledgeable within the field of concern. Use a labor law attorney for employee concerns, a real estate attorney to review a lease contract for a new building, and so forth.

Sound like too much trouble or money? You may change your mind if given incorrect information, or you have an attorney that cannot give you a confident answer. An “I believe” in any answer from an attorney warrants a red flag. Check with your region’s American Bar Association and trusted industry experts to help you find a competent attorney.

Smart Labeling

noreply@blogger.com (AAlbright) — Sat, 05 Dec 2009 04:42:00 +0000

Along with the many labeling requirements that come along with warehousing and third party logistics is the responsibility of choosing the right label printer and encoder. The wrong decisions can cost you more than time lost. It can result in shipping delays, which ultimately means unhappy customers and lost revenue.

There are numerous types of printers from which to choose. So, what is out there?

· The print and apply method is pretty self-explanatory
· Thermal transfer print technology entails using heat to melt the material from the tape onto the label
· The Tamp-Down method includes pressing the adhesive side of the label to the product
· The Blow-on methods requires a burst of air to imprint the label
· The wipe-on technology uses a pressure sensitive application process

A relatively new method of labeling involves a reduced glue labeling technology, which uses less glue by applying the adhesive to the leading edge of the label and on the trailing edge, which overlaps the leading edge of the following label. This method has proven to be cost effective by reducing the cost of adhesive from 30 to 50%.

No matter what label printer technology you decide upon, make certain that you can integrate the software and hardware with your current equipment. Consider price-point, cost of integrating new and old technology, and allotment of time required to make the change.

Compliance Labeling

noreply@blogger.com (AAlbright) — Thu, 03 Dec 2009 03:54:00 +0000

Hold on to your hats, compliance labeling is going to be getting bigger. Compliance labeling in the manufacturing and warehousing industry is incredibly important. Incorrect labeling can create issues with channel deliveries, delays, fines, and loss of business, because of shipping delays and non-compliance. Compliance labeling is used in retail, food industry, auto, electronics, healthcare, and many others.

Compliance labeling used depends upon your industry. The food packaging industry must include calories, ingredients, and food allergens. Retail labeling requirements include GS1-128, which was developed to create global standardization for the exchange of data. The symbology coordinates with a pre-determined description. The Unites States Department of Agriculture has recently developed the requirement of the USDA 2009 Country of Origin Labeling. Labeling also includes BISG ISBN Carton Labels, SCC-14, ISBN, Bookland EAN, and UPC, GTIN Database. It just keeps getting more complicated from there.

Most labeling systems integrate both shipping label and packing slips printed on a single unit. These systems also allow you to label and track the products. In the manufacturing industry, it is essential that the labeling system is efficient, does not smudge the label, utilized bar-coding systems, incorporate the appropriate information, has a reliable high volume printer, and works efficiently, so that production is not disrupted.

The Holiday Dilemma

noreply@blogger.com (AAlbright) — Mon, 30 Nov 2009 02:44:00 +0000

This question comes up every year during the holiday season. How do you go about celebrating the holiday while keeping the terminology politically correct? Each individual has his or her own way of celebrating their spirituality, so things can get sticky when a specific terminology is used to celebrate time away or at work, such as Christmas Party verses Holiday Party. Laborers may become quite offended if you call a celebration a Christmas party, but the laborer is not Christian. It is not unusual for managers within an organization to find themselves in an uncomfortable situation or lawsuit over terminology used innocuously.

The assumption is that if an organization is privately owned, that it does not matter what terminology is used. Unfortunately, even though the sentiment is kindly meant, individuals may find this to be offensive. The general rule is to keep terminology general and open the festivities up to other denominations. For instance, if Christmas is celebrated within your organization, consider asking if workers have an interest in celebrating Kwanzaa, Hanukkah, or Bodhi Day.

Keep in mind, holidays are not a right and are given to employees as a benefit, so it is not necessary to give everyone time off every time a holiday comes around. However, if you provide holiday pay for celebrating Christmas is may be wise to offer the same benefit to individuals that celebrate other ethnic or religious holidays instead of Christmas.

This is not an easy situation to resolve. If you encounter an issue at work, then an open mind and understanding is an essential attribute to have. Look at alternative for individuals that do not celebrate the same holidays as you and speak with a human resources consultant or attorney to help you make decisions that affect employment policies.

Pick and Pass

noreply@blogger.com (AAlbright) — Thu, 26 Nov 2009 05:34:00 +0000

The concept of pick and pass also known as split case picking helps complete pick orders. The warehouse pick and pass methods is particularly helpful when labor is at a premium. A conveyor is essential in order to set up multiple packing zones.

The picking and packing process always starts at zone one. Each bin has a required list of items added in the kitting process or multiple orders. As the box or bin passes a worker, the individual adds the item listed. If that zone does not possess the items required, then it moves to the next station until all items have been included. Like most processes, the pick and pass method can use the paper and checklist utilize voice software. The software used must be flexible enough to configure the picking process to accommodate several pick and pack orders.
I found this method useful, but the most difficult to explain clearly. Conveying (no pun intended) this concept took a bit of work for me, so I researched the concept and found an article from Logistics News that was easy to read and explains this idea fairly clearly.

Building a Green Warehouse

noreply@blogger.com (AAlbright) — Sat, 21 Nov 2009 02:56:00 +0000

We leave a carbon foot print in everything we do, eat, and utilize. Although, progress is considered a good thing, too much of a good thing can be bad for you. Society is much more aware of how the earth and its resources are used and abused. With this added awareness, it is essential that organizations realize that they need to be perceived as socially consciences.

Sustainable building is becoming the rage. Old buildings are often retrofitted and new buildings tend to reflect alternative methods during construction to save energy in a variety of ways. From top to bottom, there is opportunity to use sustainable methods within the development of the building such as using low-pressure toilets and waterless urinals. Other methods involve upgrading insulation, using recycled materials, the use of skylights, solar panels, and motion detector light sensors to eliminate energy waste. Installing energy efficient windows and using floor based air conditioning and heating units help save power and money once the warehouse is in operation. Installing a geothermal energy system is efficient and better for the environment. During the build out, consider using building materials from the local area rather than shipping from abroad and recycle as much construction waste as possible. This only scratches the surface of how you can accomplish a goal of building a green warehouse.

Granted, the initial expense of building a sustainable warehouse tends to be approximately 2% more that the average cost of construction, but over the next twenty years, on average, you can save up to ten times the cost of energy alone.

Flextime

noreply@blogger.com (AAlbright) — Fri, 20 Nov 2009 05:09:00 +0000

Employees want more benefits, but as an employer, you are plagued by the high cost that additional benefits may add to the already increasing cost of healthcare benefits. So what can you do? Sometimes you do not have to spend additional funds to make employees feel content within their occupations. You may want to consider offering an alternative to the nine to five workweeks. Whether man or woman, many laborers have family and children with which to contend and having the flexibility to work around handling family matters can be just as important or more so to an employee than money.

An individual that needs to take care of an ailing family member, elderly parent, or children that are still in school, who have the flexibility in their work life to handle family matters can typically concentrate better on work if they are not worrying about taking care of matters at home.

Flextime can come in a variety of forms such as ten hour day, four days a week, split shifts where the employee can work morning and evening, but are able to be home in the afternoons to care for their children. Another method includes splitting a shift with another worker that needs to work afternoons while the other has a need to work mornings. Laborers often find that the flexibility in the workday has the equivalent or more value than money.

If this is an option that you may want to consider but do not know if it of importance to your work force, consider taking a survey to determine the validity of whether or not this is a value within your organization. Your Human Resources department can be of great help in helping you to determine the feasibility of such a program.

The Importance of Professionalism

noreply@blogger.com (AAlbright) — Sat, 14 Nov 2009 23:56:00 +0000

Professionalism seems to be lacking by employees in all levels of organizations. Whether working in a financial industry such as banking or within a third party logistics company, standards of professionalism vary, but all should have a certain level. According to the Merriam-Webster’s Dictionary, the definition of Professional is “exhibiting a courteous, conscientious, and generally businesslike manner in the work place.”

Unfortunately, professionalism seems to have gone the way of the horse and carriage. Whether working in a warehouse facility picking and packing or middle and upper management, professionalism should be expected from each individual within your organization. Professionalism is simply the use of manners when dealing with co-workers, customers, and vendors. Actions such as not interrupting or correcting colleagues, rummaging or taking items from an associate’s work area, knocking before entering an office, minding your “P’s and Q’s”, or maintaining an excellent sense of integrity.

Employees come from a variety of familial and cultural backgrounds, so may be unaware of the standards of professionalism within your company. It is up to management within the company to expect and enforce a certain standard of behavior in courtesy and should be expected and enforced. It is possible to learn or change certain behavior, so if you have issues within your organization consider creating a workshop to assist employees with this concept. Your human resources department may be a good area with which to begin.

Foam-in Place

noreply@blogger.com (AAlbright) — Sat, 14 Nov 2009 05:02:00 +0000

Styrofoam packaging that breaks easily, peanut packaging that end up all over the place, and bubble wrap that works well but requires a lot to fill a box work well but are not always ideal to protect the product departing from the warehouse and ship across the nation or world. An alternative method of warehouse packing is foam-in place protective packaging.

The foam-in place is a cushioning method that filled voids in packages to protect items in transit. The polyurethane foam is in liquid form that expands up to 200% of its original size and solidifies.

One method of the foam-in place method includes the following steps.
· Line the box with a strong film suited for the process
· Using a hand held dispenser with the use of a compression air system, spray the liquid
· The liquid expands
· Fold over the film, then place the product firmly in place
· Place lining over the items
· Spray foam and fold sheet over
The foam expands to fill space around the product to keep expensive and/or delicate items in place, in order to prevent damage during transit.

A similar method includes pre-packaged liquid foam that expands once activated by rubbing or pressing. Place the pack in the box, press the product in, and then repeat the process again.

There are various manufacturers and systems and the method you choose depend upon size and volume.

Intermodelism

noreply@blogger.com (AAlbright) — Sun, 08 Nov 2009 04:59:00 +0000

It was only sixty years ago that inter-modalism was just a concept. Cargo moving internationally traveled inefficiently and took far longer than it does today to arrive to its destination. The movement of goods was slow, unorganized, and goods typically sat until the next step on the route was scheduled. The transfer of cargo from ship to dock to train to truck to warehouse to truck and finally to its final destination was at best inefficient. Logistics has come far with a world-wide intermodal network that makes use of water, air, and land in the most efficient and cost-effective way.

The movement of containerized goods transferred internationally has become seamless. The transport of thousands of cases, boxes, raw goods, even produce has become an integrated system of transportation networks. This concept of inter-related transport has even led to new logistics terminology such as load centers, which is the port that cargo is off loaded, and LOLO, which means the lifting on and lifting off of cargo via the use of cranes to load and unload cargo.

Logistics management involves strong organizational skills, project management skills, training, negotiations ability, appropriate software, excellent computer skills, and a great deal of strategic planning.

Warehouses Be Aware of Company Branding

noreply@blogger.com (AAlbright) — Sat, 07 Nov 2009 02:56:00 +0000

Brand management is an effective marketing tool that helps companies increases the perceived value of their products. A company’s trademark helps increase its competitive edge. Customers buy products that he or she trust and believe provides them with the best value.

Warehouses provide services such as packaging for clients that fit within the needs of the manufacturer and client. Secure packaging is important, but just as essential to your success is maintaining the company’s brand management on all packages that leave the manufacturer’s docking areas. You should consider hiring a third party distributer that provides a packaging and distribution service all the while being careful to be awareness of the client’s branding standards.

Package branding must encompass the internal packaging and forms as well as outer labels on that are immediately apparent on the box. Inconsistent branding can lead to confusion and detract from the product and company’s value.

Branding also includes the quality of the product as well as the outside container. A third party Logistics Company that produces inferior product for the company will inevitably ruin a company’s brand. Important to the success of your organization is consistent oversight of the manufacturing and packaging process.

Video Conferencing Magic

noreply@blogger.com (AAlbright) — Sun, 01 Nov 2009 04:18:00 +0000

Individuals working in the warehousing and manufacturing industry work with organizations around the world. There was a time that there was no alternative than to travel physically to meet with clients or manufacturers in order to conduct business. Even with today’s technological advances, managers and business owners travel thousands of miles by plane, train, and car every year to conduct important business.

Although meeting associates provides a personal touch, it does cost thousands of dollars each year and puts a hefty dent in profits, often adversely affecting the financial health of an organization. Fortunately, there is an effective alternative to travel. Teleconferencing and video conferencing has come a long way. The combination use of computer technology, video conferencing, and telephone has provided a viable alternative to travel. Even though the initial investment may require several thousand dollars, the savings in travel cost is immediately visible. Cost savings include rental cars, hotels, airline tickets, non-refundable tickets if travel is cancelled, internal administrative costs, airline tickets, overtime, lower turnover rates, and most significantly, time.

Needless to say that if travel is already kept at a minimum within your organization, a video conferencing system may not be ideal, but it can make an enormous impact if travel is a large component of your expenses each year.

Inventory Accuracy

noreply@blogger.com (AAlbright) — Thu, 29 Oct 2009 02:24:00 +0000

An enormous concern regarding warehousing is inventory control, which is, to say the least, not easy. With the influx and outgoing parts moving through the warehouse quickly, it becomes difficult to get an accurate count. For most 24/7 environments, it is not feasible to close down operations once a year in order to get an accurate count.

The alternative options is to use the cycle counting method, which entails using counting a subset of the inventory rather than your entire inventory. This tends to be a better method, because you are able to remain current on inventory discrepancies. Start with your problem areas and conduct a cycle count more often in these areas. You may even consider doing a cycle count every day until you get the problem under control.

Important to conducting a cycle count is taking into account incoming and outgoing product within the specific time that inventory is audited. Compare variances to determine accuracy. Keep in mind that the number of parts within an inventory will affect the variance percentage; the greater the number of parts, the higher the accuracy rate. Do provide adequate training in order to ensure accurate measures, otherwise all the work was in vain.

Inventory audits ensures success for your organization, so it is vital to your organization to establish defined processes and to document in detail location, part, and when the inventory count what conducted.