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Warehouse Improvement Options for 2009
Barriers to Improving Warehouse Productivity
The November issue of Material Handling Biz described the six action items companies are doing to combat logistics costs. This article will look at what Aberdeen Group’s research revealed are the barriers to improving warehouse productivity. They are:
- 52% Insufficient warehouse technology
- 48% Visibility in and out of the warehouse (e.g., upstream visibility) is Insufficient
- 47% Warehouse layout prohibits higher throughputs in existing footprint without a major overhaul
- 37% Poor best practice sharing across locations and between business units
- 33% Lack IT resources to support warehouse technology initiative
The top cited barriers have to do with a lack of sufficient technology for warehouse automation and visibility. The concern over insufficient technology holds true for respondents across all company sizes. In addition, nearly half of respondents say a top barrier to better warehouse performance is that throughput improvements would require a dramatic revamping of their physical warehouse layout. Innovators are working with systems integrators and others to devise new ways to over-come these obstacles.
Overcoming Productivity Barriers
To overcome these barriers, fully 55% of companies indicate that capturing warehouse metrics and activities and sharing them in real time have helped or would significantly aid in improving their warehouse performance.
Similarly, 47% of respondents would like to or have installed an enterprise-wide initiative to share best practices across internal warehouse operations. A small publishing company’s warehouse manager indicates that “through the institution of a best practices log,” the company was able to cut its warehousing costs by between 1-10% over the past two years.
A full 47% feel that more productivity could be squeezed from their current facility by revising slotting and layout, while 46% believe cross training employees is a proactive move towards productivity.
Need assistance in conceiving a more agile warehouse environment? Want to discuss revising throughput strategies? Contact Morrison Company for a facility assessment..
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