Distribution Group Distribution Digest

Distribution Digest E-newsletter Archives

Distribution Digest is a free e-newsletter that brings you the same high-quality management information available in the Distribution Group’s print publications.

Twice each month, you’ll get quick-reading ideas that are sure to spark new thinking, action and improvement in your warehouse or distribution center.

February 2

Dear Distribution Professional,

*** Today’s News

Get out of fire-fighting mode

With all the talk of high-tech efficiency measures such as warehouse management systems, performance metrics, and engineered standards, it would be easy to assume that most distribution centers operate efficiently and effectively.

But such an assumption would be wrong, says Jeroen P. van den Berg, head of Dutch firm Jeroen van den Berg Consulting and author of the new book Highly Competitive Warehouse Management.

Fully half of distribution centers operate in a chaotic state that van den Berg considers fire-fighting mode.

The typical warehouse sets no goals, keeps track of no performance metrics, and simply lurches from one crisis to the next.

“Many managers are absorbed by their day-to-day routine,” van den Berg writes in his new book. “Ironically, they are so busy with everyday problem solving that they rarely find time to solve problems.”

In the February issue of industry newsletter Distribution Center Management, van den Berg offers advice for DC managers who are interested in leaving fire-fighter mode:

Use KPIs, he says. Key performance indicators (KPIs) should serve to paint a big picture that creates clarity for operators and managers. They can also be invaluable for identifying problems and areas for improvement.

KPIs will vary depending on the size and type of DC, but they measure processes such as productivity, accuracy, inbound handling, outbound handling, and storage.

You should aim to measure the eight to 16 KPIs that reflect the scope of your operations. “If only a few aspects are covered in the KPIs, then this may result in a myopic view of the operation,” van den Berg says. On the other hand, too many KPIs or too much overlap of KPIs can lead to information overload and general confusion.

Keep in mind that operators and supervisors will focus on the issues covered by the KPIs, and they’ll neglect other measures — so choose wisely, and limit the number of KPIs that individual operators are responsible for. Three to five is a good rule of thumb.

Additional advice from van den Berg appears in the February issue of Distribution Center Management newsletter.

*** Recommended Reading

We are delighted to introduce Highly Competitive Warehouse Management.

This groundbreaking new book presents an action plan for moving the distribution center from the typical fire-fighting mode to best-in-class performance.

It’s a highly effective approach that will appeal to all warehouse and DC managers who are ready to take their facilities to the next level.

For additional information and to read an informative white paper, visit us online at: http://www.DistributionGroup.com/hcwm.php

January 19

Dear Distribution Professional,

*** Today’s Sponsor

Automation helps Crate & Barrel exceed customer expectations

Crate & Barrel’s e-commerce operations are growing hand-in-hand with Kiva Systems. With Kiva’s quick to deploy solution, Crate & Barrel was up and running in just six months and ready for the biggest peak season ever. See how they did it. Click to watch the video.
http://www.kivasystems.com/2011/dd_cbspeed_jan2012

*** Today’s News

DC’s employee-run safety program reduces accidents

When a worker at Crown Equipment Corp.’s distribution center sees a coworker perform his job safely, something unusual happens. The worker pulls a card out of his pocket, makes a few marks on it, and hands it to the exemplary worker.

It’s all part of the forklift manufacturer’s program of “behavior based safety” that has helped reduce accidents in both the manufacturing facility and the distribution center.

Crown’s latest safety push began six years ago, when the company found that it had hit a plateau using the usual approaches to safety, says Brian Duffy, Crown’s director of environmental health and safety.

In the January issue of Distribution Center Management, Duffy tell readers that the company then decided to put its safety program in the hands of its workers.

Crown isn’t exactly letting the inmates run the asylum, however. It brought in a consultant to help set up its program. Here’s how they do it:

At the beginning of a shift, each worker picks up a handful of cards listing the latest safety priorities. Examples include:

Sound horn at an intersection before continuing into an aisle.
Look both ways before entering an aisle.
Acknowledge pedestrians in your area.
Perform an inspection before operating your truck.
Bend at the knees when lifting a load.

When a worker sees a coworker performing one of these behaviors, he stops, checks off the appropriate line, and hands it to the worker. The tone of the interaction is upbeat, and the theme is to recognize and thank the worker who’s behaving safely. “People really appreciate being thanked,” Duffy says.

Details on Crown Equipment Corp.’s safety plan appear in the January issue of Distribution Center Management newsletter.

January 3

Dear Distribution Professional,

*** Today’s News

Get ready for another challenging year

Sluggish sales, tight budgets and rising oil costs are among the top concerns for distribution center and warehouse management in 2012.

But, according to the industry experts interviewed in the January issue of Distribution Center Management newsletter, there are plenty of strategies that managers can adopt to overcome these challenges and position the DC for success.

One particularly persistent challenge is too much inventory. In the article, Fred Kimball a principal of Distribution Design notes that “outright space mismanagement” has grown rampant in warehouses. “Over the past couple of years, I have seen a dramatic increase in operations with multiple SKUs per physical location in the warehouse. This means multiple SKUs on one pallet, usually due to consolidating slow-moving inventory onto one pallet to save space.”

In one instance, Kimball saw a DC where the warehouse management system considered a particular bay one location, even though there were eight pallets and 70 SKUs at this location. That meant a picker visiting the location had to navigate 70 different products to find the one he needed.

“I doubt any warehouse manager would want a storage environment like this, but they are backed into a corner because of too much inventory and the company’s unwillingness to purge excess and obsolete inventory,” Kimball says.

If you’re saddled with this sort of inefficient use of space, Kimball says, then make it your mission to tell your bosses about how much this clutter costs in terms of space, labor, and equipment. Among the steps Kimball recommends: Document the operational costs of excess inventory, report the number of SKUs with more than six or 12 months supply on hand and what percentage of total inventory the slow-moving SKUs represent. Calculate the space you”d create by moving the excess inventory out of the building. Use outside storage or rented trailers in the yard. Conduct a productivity test to measure the time wasted by pickers rummaging through a location with eight pallets and dozens of SKUs.

The bottom line, says Kimball, is to make yourself the catalyst for change. Maybe the most cost-effective solution is to write off the slow-selling inventory and toss it in a dumpster.

You may read the full trends article online at: http://www.DistributionGroup.com/dcmtrends.php

December 6

Dear Distribution Professional,

*** Today’s News

Looking for a More Efficient Warehouse Layout?

Nearly every warehouse in the world is laid out in a basic grid. Picking aisles are straight and parallel, and cross aisles run straight and perpendicular to the picking aisles.

But this layout — Auburn University researcher Kevin Gue calls it “your grandfather’s warehouse” — might not be the most efficient way to arrange a DC.

"Why does this middle aisle have to be straight?" Gue asks in the December issue of Distribution Center Management newsletter. “It doesn’t.”

Gue and the University of Arkansas’s Russ Meller have teamed up to question the assumptions behind the traditional warehouse layout, and they’ve found that modifying the layouts can cut travel times by as much as 20 percent.

Gue and Meller have seen the successful adoption of some of their layouts, which include the Flying V, the Fishbone, the Chevron and the Leaf. But, Gue cautions, “Every implementation is different. There’s no cookie-cutter approach.”

Details on these layouts and their uses appear in the December issue of Distribution Center Management newsletter.

November 22

Dear Distribution Professional,

*** Today’s News

Maintenance and training can help avoid rack collapses

If your storage racks are dented and dinged from repeated abuse, you might want to search YouTube for the phrase “storage rack collapse.”

The videos you’ll find show worst-case scenarios: A forklift hits a rack, and within a few seconds racks are toppling and boxes are everywhere. “It’s just like dominoes,” says Don Kelly of Diversified Rack & Shelving. “You could lose your entire warehouse.”

Thankfully, these massive meltdowns are rare. A more typical rack collapse is isolated to a small part of the warehouse. But the costs of any rack failure can be steep. Lost inventory, missed orders, and damaged forklifts are likely. And if workers are killed or injured, the costs can soar, says Chris Curtis of Storage Rack Repair.

So how do you keep your racks safe? Kelly, Curtis, and Anne Russell of Steel King offer advice in the November issue of Distribution Center Management newsletter.

The place to start, is with routine maintenance. Managers tend to forget to maintain their storage racks. Unlike forklifts and conveyors, storage racks have no moving parts, so there’s no need for maintenance, right? Wrong, says Curtis.

Conduct regular inspections of not just the racks but also the floors. Cracks in concrete floors around the anchors can lead to collapse.

The full article and maintenance tips appear in the November issue of Distribution Center Management newsletter.

November 10

Dear Distribution Professional,

*** Today’s News

Talk to Your Planning Department

Communication between planning departments and distribution centers is never more important than now, with the holiday rush in full swing.

Yet too many companies have unwittingly erected communication barriers between their forecasting departments and their warehousing operations, says Ralph Cox in the November issue of ’.

Cox, a principal at Tompkins Associates notes that while managers are well-versed in their area of expertise, they often don’t know other areas well.

“That’s why you end up with warehousing operations disconnected from planning departments, and vice versa,” he says

If you’re feeling the effects of that sort of disconnect at your DC, Cox suggests making an effort to fix it. The simplest, most straightforward solution is to ask your planning department to sit down with you and explain the demand-forecasting process. While you’re at it, make certain the planners understand how their decisions affect the DC.

Cox recommends focusing the conversation on activities that impact receiving, labor and space utilization.

The full article appears in the November issue of Distribution Center Management newsletter.

October 24

Dear Distribution Professional,

*** Today’s News

Publishing DC Metrics — Who Sees What

Using metrics is a surefire way to boost the profitability of your facility. Whether you’re measuring accuracy, turnover, space utilization, or any of dozens of other performance standards, tracking metrics is the first step toward improving your processes.

While the sheer number of possible metrics can be daunting, Brian Lindenmeyer, practice director at Peach State Integrated Technologies says there’s no need to be Intimidated. The key is to focus on actionable data and to share that data in a meaningful way.

In the October issue of Distribution Center Management newsletter, he recommends that readers publish their results prominently and regularly within the DC, so that workers can gauge their performance. “People like goals,” Lindenmeyer says. “People also like to know how they’re doing against their peers.”

When reporting up the chain of command, gear your reports to the audience. A top executive doesn’t need to see daily reports, and even a facility manager doesn’t need to get bogged down in what Lindenmeyer calls “the daily grind.”

Executives should get annual and quarterly reports. Facility managers should focus on monthly and departmental trends. Department managers should get weekly and monthly reports. Only supervisors need to stay on top of daily metrics.

The full article including Lindenmeyer’s tips on selecting meaningful metrics appears in the October issue of Distribution Center Management newsletter.

October 12

Dear Distribution Professional,

*** Today’s News

In-house Co-Packing Saves Kimberly-Clark Millions In a move being closely watched in the distribution industry, Kimberly-Clark has taken over co-packing of consumer goods such as tissues, diapers and baby wipes.

For example, if the $20 billion-a-year company wants to promote, its Little Swimmers diapers by attaching a bottle of sunscreen to the bag. Instead of hiring a co-packer to create the packages, Kimberly-Clark does the work itself in its distribution center.

Bill Lindeke, who until recently was director of distribution operations for family care at Kimberly-Clark tells Distribution Center Management, that the integration has shortened inventory lead times and yielded significant savings.

Just what kinds of savings? Lindeke provides some details.

Freight: 60%
Inventory carrying costs: 20%
Labor: 15%
Damage: 5%

An article in the October issue of Distribution Center Management newsletter details how these savings were achieved.

September 22

Dear Distribution Professional,

*** Today’s Sponsor

Create a distribution powerhouse with Kiva Systems! The speed to deploy material handling, add capacity and change operations is critical for long term success. Fast system deployment can be the difference between kicking the competition out of the water and limiting your growth. Read about Kiva’s way to rapid deployment:
http://www.kivasystems.com/2011/distributiondigest_sept2011

*** Today’s News

Is It Time to Renegotiate Your DC Lease? Despite a slight uptick in demand for distribution space, the market remains soft. For DC operators looking to lease new space or to renegotiate terms on current space, the outlook is good.

Vacancy rates for warehouse and distribution space fell to 14.5 percent from 15.1 percent a year ago according to real estate brokerage Jones Lang LaSalle.

Even with a rise in demand, albeit slow, the average rental rate for industrial space across the country fell by 0.7 percent to $4.24 per square foot in the first quarter.

There’s growing demand from big-box retailers for distribution centers in major U.S. markets, and activity is slowly filtering to second-tier markets.

Much of the movement is being driven not by growth but by a ruthless search for efficiency. Many moves are the result of consolidation or a desire to dump inefficient DCs, says Craig Meyer, executive managing director at Jones Lang LaSalle, in the September issue of Distribution Center Management.

Amazon.com, for instance, leased large facilities in Arizona and Georgia as part of a streamlining of its network.

“It’s all about cost savings,” Meyer says. “It’s all about cranking out of the supply chain any additional cost savings you can.”

August 25

Dear Distribution Professional,

*** Today’s News

10 Steps for Improving Operational Efficiency

Whether it’s tweaking metrics, improving training, or communicating more effectively, every DC has some areas where it could improve its operations.

In the September issue of industry newsletter, Distribution Center Management, Chris Arnold and Jerry Koch of Intelligrated share 10 steps for improving operational efficiency:

Step 1. Know your operation — Many managers say they know their operations intimately, but you can always step up your game. Map the processes in your DC, and then ask your operators how the map matches reality.

Step 2. Know your goals — Choose five or 10 metrics that are top priorities. Measure your progress toward these goals, and give immediate feedback to your workers about how well they’re performing. Make sure the metrics you track are relevant, and not metrics designed to address a problem from 10 years ago.

Step 3. Strike a balance between accuracy and cost — If your accuracy rate is 99.95 percent, it might not be worth the effort to eliminate all errors. Of course, accuracy goals can vary by industry. Pharmaceutical companies must aim for 100 percent accuracy, but for many industries, a 99.95 percent accuracy rate can be good enough.

Step 4. Train, train, and train again — If your training isn’t effective, your workers will rely on "tribal knowledge" to provide on-the-job training. This sort of hand-me-down instruction is unlikely to provide the most effective way to perform a task. To get workers onboard with the official training program, make sure you explain why things should be done in the manner you suggest. Koch says workers can be like teenagers in that they want to know why you want them to do something in a certain way.

Step 5. Recognize that people are key — "We use mechanization and automation, but ultimately, the people involved make sure processes run and run efficiently," Koch says. DC jobs can be physically grueling and thankless, so make sure you treat workers fairly and with respect. Learn their names, and try to set them up for success. Too often, Arnold says, "We push them on productivity, but we forget about the human side."

All 10 of Arnold and Koch’s tips appear in the August issue of Distribution Center Management.

August 10

Dear Distribution Professional,

*** Today’s Sponsor

Mobile Robots Key to Flexibility and Control The best retailers and e-commerce companies carefully select and intelligently apply automation not only to boost productivity, but also to turn the DC into a competitive weapon. Read this white paper to see how Kiva simplifies operations and reduces costs while increasing strategic flexibility with fleets of autonomous mobile robots and sophisticated control software.
http://www.kivasystems.com/2011/dd_swwp_aug2011

*** Today’s News

Finding Savings in the Battery Room

Inefficient use of forklift batteries costs the material handling industry an estimated $260 million a year.

But it doesn’t have to be that way, says Harold Vanasse. He notes that a lack of understanding of the fundamentals of battery maintenance dooms many DCs to waste money. What’s more, relying on forklift operators to properly maintain batteries is an exercise in futility.

In the August issue of industry newsletter, Distribution Center Management, Vanasse, a vice-president with industrial battery specialist, Philadelphia Scientific identifies six waste areas that every DC should watch for:

Transportation waste — Too many battery changes and trips to the battery room.
Inventory waste — More batteries and chargers than you need to get the job done.
Motion waste — Too much charging and watering of batteries.
People waste — Too many people watering and changing batteries, or mechanics and electricians watering batteries when workers with lower skill levels could do the task.
Waiting waste — Operators queueing for battery changes or waiting while a battery is being watered.
Defects waste — Selecting the wrong battery (one that isn’t fully charged or cooled down).

In the August issue of Distribution Center Management, Vanasse also offer six basics for efficient battery use.

July 1

Dear Distribution Professional,

*** Today’s News

When Chris Kushmaul visits a DC, he finds the fat immediately. Whether it’s too much inventory or a line of trucks burning fuel and time, Kushmaul sees DCs committing the same mistakes over and over.

Kushmaul is vice president of lean facilities at LeanCor. LeanCor preaches against the “8 Wastes of the Warehouse,” and Kushmaul says these mistakes are obvious to the trained eye.

One of the most common sources of waste is overprocessing. Like overproduction, overprocessing means you’re doing more than you need to. For example, you might have the picker perform three quality checks before passing an order to the packaging groups, which are required to perform two more quality checks.

Many warehouse processes are filled with extra steps and riddled with redundant checks. While the goal is to reduce errors, the confusion caused by overprocessing leads to errors.

Another common waste is waiting.

Waiting can happen anywhere — with machines, materials, information, suppliers, customers, or employees. One common source of waiting at DCs is in the parking lot, where truck drivers often queue up at the same time.

“Drivers love to get their load first thing in the morning,” Kushmaul says.

That means most DCs have a traffic jam of trucks waiting to be loaded. This creates staffing challenges for the warehouse — which is forced to overstaff for busy times and then let workers sit idle later in the day.

The solution is to schedule drivers to arrive throughout the day. If they show up at the wrong time, they don’t get their loads.

“You’ve got to give drivers window times, then manage them,” Kushmaul says.

Six additional warehouse wastes are covered in the June issue of Distribution Center Management.

June 17

Dear Distribution Professional,

*** Today’s Sponsor

Robotic fulfillment solution boosts picking speed If picking faster and more accurately is a perpetual challenge, then you’ll be interested to learn about Kiva Systems’ Mobile-robotic Fulfillment Solution. Watch this 3-minute video to experience a better way to fulfill orders.

You’ll see Kiva in action performing each pick speeds greater than 600 LPH. As orders drop to the pick station, inventory is automatically and continuously presented resulting in at least double worker productivity compared to traditional automation approaches. Click below for the video. http://www.kivasystems.com/2011/distributiondigest_quickpick_q12011

*** Today’s News

Tattoos are fine and food is free in worker-centric DC Workers at Zappos’ distribution center in Shepherdsville, KY, are treated to an array of perks often associated with Silicon Valley or Wall Street.

There’s free lunch every day, and drinks and snacks from the vending machines are free. Employees who cover just themselves on the company health plan pay nothing for medical insurance. (Workers with families chip in for part of the premium.)

Amid the push to create “worker-centric” warehouses, online shoe retailer Zappos is a leader.

YouTube testimonials from Zappos workers show one worker after another praising working conditions and touting their freedom to be individuals.

Unlike some DCs, Zappos imposes no dress code and doesn’t require workers to cover tattoos or piercings.

While Zappos offers generous perks, its starting pay is a bit stingy. DC workers start at $8.50 an hour, although that can quickly rise to $10 after six months and $12 in a few years.

“Our starting wage is the lowest in the area, but we have a series of raises that are very aggressive,” says Anthony Vicars, director of fulfillment operations.

More about Zappos and worker-centric DCs is in the June issue of Distribution Center Management.

May 19

Dear Distribution Professional,

*** Today’s Sponsor

Learn more about ERP with Epicor’s interactive tools You need to employ the best strategies and technology to provide the service and quality your customers have come to expect. Find out if your current Enterprise Resource Planning (ERP) system is up to the task and download Epicor’s complimentary Distribution ERP Evaluation Kit. Click on the link below to view a multimedia demo, white papers, case studies and more.
http://explore.epicor.com/verticals/distribution?source=NS_DG_DIST_Q211.

*** Today’s News

Rising oil prices will bring change The spike in oil prices in recent months renews fears that petrol costs will change the way distribution centers operate.

Oil prices peaked in July 2008, then collapsed over the next nine months. But fuel has soared since March 2009, and oil again crossed the $100-a-barrel mark in March of this year. Logistics expert Chuck Taylor of Awake! Consulting, predicts oil will reach $110 to $120 a barrel by midyear.

“The general trend is going to be up,” Taylor says. “It’s a finite resource, and it’s getting harder to find.”

In the May issue of Distribution Center Management newsletter, Taylor discusses eight ways rising oil prices will affect DCs. This includes opening for night hours.

Traffic jams kill fuel economy, he notes. As gas prices rise, it’s likely that logistics managers will put trucks on the road at night rather than during rush hour.

While DCs typically see the most activity during the day, that will change as nighttime pick-ups and deliveries become the norm.

The May issue also includes articles on integrating the disabled into the DC workforce, and using utility rebates to take the sting out of purchasing new lighting.

April 7

Dear Distribution Professional,

*** Today’s News

Whether you’re installing a new WMS, initiating a stricter safety program, or otherwise shaking up your DC, beware the change monster - it lives in every company.

Change resistance is an issue on projects, new implementations of material handling equipment, and the installation of new software systems.

Unfortunately most managers ignore the need for change management and later wonder why the project was not an overwhelming success.

Change management should be included in every project because “Change” is a word that generates fear for most people in your distribution center.

Writing in the April issue of Distribution Center Management, newsletter, industry expert Susan Rider, cautions readers about the change monster and offers concrete strategies for managing change.

March 24

Dear Distribution Professional,

*** Today’s Sponsor

If picking faster and more accurately is a perpetual challenge, then you’ll be interested to learn about Kiva Systems’ Mobile-robotic Fulfillment Solution. Watch this 3-minute video to experience a better way to fulfill orders.

*** Today’s News

Despite the arrival of spring, much of the country faced another round of snowstorms this week. Distribution center managers must use extreme care in protecting their facilities and staff from common winter-weather risks.

The March issue of industry newsletter, Distribution Center Management, provides the following timely advice from the Occupational Safety and Health Administration:

Electric shock from downed power lines is a common hazard. Assume all power lines are energized, stay away from them, and contact your utility company. Make sure all electrical equipment is grounded.
With rooftops covered with snow, falls are a danger. Before sending a worker onto the roof, provide fall protection. Make sure ladders are properly used and maintained.
Take care with chain saws, snow blowers, and other power tools used to clear snow and downed tree limbs. Cuts and amputations are all too common, so be certain that guards are installed on these tools, and instruct workers to turn them off and disconnect them from power sources before clearing jams.

February 24

Dear Distribution Professional,

*** Today’s Sponsor

*** Today’s News

John M. Hill of TranSystems has visited hundreds of warehouses around the globe, and he has found half a dozen quick and easy ways to tell how effectively a DC is run.

His checklist has little to do with the arcana of warehouse management systems or sophisticated slotting models — and everything to do with his mother’s rules for cleanliness.

In the February issue of industry newsletter, Distribution Center Management, Hill explains that his mom demanded that her kids keep their rooms spotless and scrub behind their ears, and Hill himself has found that attention to basic details can mean a lot in the DC.

His six-point check list includes the “dirty-finger test.”

While walking through the storage or picking areas closest to the shipping docks, drag a finger across the tops of the stored pallets, cases, or items and check that finger every 10 or 15 feet.

The quicker your finger gets dirty, the greater the problem with improper storage of slow-moving materials. Fast movers, not slow, should be located nearest to shipping to reduce travel times and speed trailer turnaround time.

All six of Hill’s common-sense tips appear in the February issue of Distribution Center Management.

February 3

Dear Distribution Professional,

Most observers expect fuel prices to continue to rise as the worldwide economy recovers. As diesel prices soar, beware of carriers who try to pass on more than their fair share of the increase.

Depending on how they’re structured, fuel surcharges can be fair or they can be a costly gimmick, says Ron Grossman, principal of Argee Logistics.

In the February issue of industry newsletter, “Distribution Center Management,” Grossman notes that if you make the wrong call, you could find yourself paying your carrier hundreds of dollars in surcharges for each bill of lading.

Grossman says you should be especially wary of any surcharge that’s calculated as a percentage rather than on a per-mile basis.

“If it’s a percentage, there’s no logic to it,” Grossman says.

George Yarusavage, principal at Fortress Consulting LLC, explains the percentage pitfall this way: Say you’re paying a carrier $1,500 to move a truckload 500 miles, and the base price for diesel in your agreement is $2. If diesel rises 10 percent to $2.20, and you’ve agreed to pay your carrier a surcharge of half the increase, you pay an extra $75 for the truckload.

But look at the carrier’s true cost: If the tractor-trailer gets 5 mpg, the carrier’s cost for 100 gallons of fuel went up by only $20.

“You paid him a lot more than $20,” Yarusavage says. “That’s a trap a lot of people can fall into.”

Grossman and Yarusavage provide additional strategies for mitigating the effects of rising petrol prices in the February issue of “Distribution Center Management.”

Check out our full line of books and videos on DC and warehouse management.

January 4

Dear Distribution Professional,

Would you want your child to work in a distribution center? That’s a question Kevin Gue, an associate professor in the Department of Industrial & Systems Engineering at Auburn University, heard at a conference in the summer of 2007.

“You could hear crickets chirping,” Gue says in the January issue of industry newsletter Distribution Center Management. “And that led to the question: If you were going to design a warehouse that your children had to work in, what would it look like?”

The problem with many of today’s distribution centers is that making it a fulfilling and enjoyable place to work isn’t a design consideration.

In the article, Gue discusses the challenges and benefits to creating a worker-centric warehouse. The article also offers three quick-hit steps management can take to improve the work environment. These are:

Change your lighting. Good lighting can allow employees to do their jobs more effectively and reduce eye strain. Try switching old high-pressure sodium lighting with linear fluorescents or metal halide energy-efficient lighting. As an added bonus, you’ll also save a bundle on energy costs.
Give workers a break. Studies have shown that just a 10-minute break can help employees focus and be more productive. Be sure to schedule breaks and downtime to keep worker morale up.
Improve ergonomics. Musculoskeletal disorders can result in protracted pain, disability, medical treatment, and financial stress. Try eliminating lifting from the floor, using lift-assist devices like scissor lift tables or load levelers, or have workers alternate lifting tasks with non-lifting tasks.

December 21

Dear Distribution Professional,

Shipping small parcels with FedEx and UPS can be a budget buster, but savvy optimization of small packages could save you hundreds of thousands of dollars a year, says Melissa Priest, in the December issue of industry newsletter, Distribution Center Management.

Priest, the managing director of AFMS of Portland, OR, recommends looking in six areas for savings on small parcel shipping. One of the most important things to keep in mind is that you can renegotiate with carriers at any time.

“A lot of people are under the assumption that once you sign a long-term contract with a carrier, you are locked in and you can’t negotiate again until the contract expires,” says Michael Erickson also of AFMS. However, that is not true, as most contracts contain an out clause in case your business changes.

For example, if you close a regional warehouse, you may have to start shipping product from other areas, thereby increasing shipments across zones.

Erickson recommends tracking your discount performance. If you are falling off of your discount tier because your shipping volume is decreasing, you may want to change the revenue commitments. In the same way, if you are far exceeding your requirements, you’re probably not getting the discounts that you should be.

Get the full story: Subscribe to Distribution Center Management today!

December 7

Dear Distribution Professional,

United Natural Foods distributes organic foods, so it’s no surprise that the company has embraced green energy in its DCs.

But United Natural Foods also is a publicly traded company, and its head of sustainability says it goes green only when such a move helps the bottom line.

“If there’s no ROI, to me it doesn’t make sense,’ says Tom Dziki, vice president for sustainable development.

In an article in the May issue of industry newsletter Distribution Center Management, Dziki explains how the company meets is profit and sustainability goals. He also offers readers helpful advice including the following tips for going green:

Look at lighting. Energy-efficient bulbs and motion detectors are an easy way to cut costs.
Tune up your HVAC. Simple maintenance can make your systems more efficient.
Look for tax breaks. Federal and state governments are encouraging investment in green technology.
Talk to your utility. Most utilities offer incentives to customers who install energy-saving systems.
Do your homework. Understand the costs and benefits of any sustainability effort. This will let you know whether the project makes sense.

Check out our full line of books and videos on DC and warehouse management.

November 23

Dear Distribution Professional,

Is it time to improve your DC’s safety policies? If so, Rudy Cuevas, corporate safety administrator at Associated Material Handling in Addison, IL, says it’s crucial that you involve as many people as possible in the process.

Cuevas tells Distribution Center Management newsletter that when Associated Material Handling introduces a new safety practice it usually spends two months sending the policy through safety committees and asking for feedback from workers.

This sort of feedback lends credibility to safety rules. And says Cuevas, that the last thing you want is that workers don’t follow a policy because it’s unrealistic or not helpful.

The interview with Cuevas appears in the November issue of Distribution Center Management newsletter and includes 12 steps to updating your safety plan.

November 9

Dear Distribution Professional,

For most DC managers, it’s a mystery why some workers excel at a warehouse task while others lag.

But The Progress Group found a way to uncover the secrets of warehouse worker performance.

In the November issue of industry newsletter, Distribution Center Management, partner Steve Mulaik explains:

The company begins by videotaping multiple workers repeatedly performing the same task. Analysts then watch the video in slow motion to slice and dice which movements are time savers and which are time wasters.

The company then uses its findings to train workers in the best way to tackle a particular task.

In each case, we’ve found savings of 10 to 30 percent, Mulaik says.

The process and some unlikely problems that have been uncovered are profiled in the November issue of Distribution Center Management.

Get the full story: Subscribe to Distribution Center Management today!

November 2

Dear Distribution Professional,

For publisher Zondervan, paper picking lists just weren’t efficient as volumes increased.

So earlier this year, Zondervan replaced paper-and-pen lists with a voice-based system.

Keith Swann, Zondervan’s vice president of distribution tells industry newsletter, Distribution Center Management, that the $235,000 voice system already has paid off.

Zondervan saw a 9.2 percent productivity gain in the first month and a 56.7 percent improvement in accuracy. “Once you see what the return on investment is, it’s a no-brainer,“ he says.

One of the unexpected benefits of the system is the dramatic decrease in training time, which can be a boon for DCs that need to ramp up hiring for seasonal peaks.

With a voice system, training a temporary picker for the holidays might take two days instead of two weeks.

Details of the Zondervan implementation are in the October issue of Distribution Center Management.

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October 26

Dear Distribution Professional,

Doing more with less has been the mantra of the Great Recession — but there’s growing fear of a backlash with fed-up workers bolting for new opportunities as soon as hiring picks up again.

“We are making people sprint, and work has to be a marathon,” says Tom Shea of Right Management, the career consulting company that’s a division of Manpower.

In the October issue of industry newsletter Distribution Center Management, Shea offers suggestions for avoiding an exodus at your DC? The first step he says is hands-on management.

Among workers who feel ignored by their bosses, 40 percent are disengaged, according to Right Management research.

Among workers who feel their supervisors focus on their weaknesses, 22 percent are disengaged. Shea calls this evidence that in manager-worker relations, even negative attention is better than no attention.

Among workers who say their managers focus on their strengths, only 1 percent feel disengaged. The clear lesson, Shea says, is to emphasize what your workers do best and build on those skills.

Additional communication and recognition strategies are covered in the October issue of Distribution Center Management.

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