Tag: Future Trends

Downsizing? Can Your Equipment Handle the Move?

Unfortunately many material handling companies and distribution centers are still having trouble making ends meet and this has led to a trend of companies moving into smaller builds to cut expenses.  If your company has a lease coming up for renewal and you are considering the possibility of cutting overhead by moving into a smaller building, ask yourself this –is your equipment reliable enough to conquer the work involved in a move?

If you have issues with outdated material handling equipment that gives you fits because of regular maintenance issues, odds are that your move will be a disaster.  Consider the fact that moving your entire operation will be a labor intensive affair unlike any other.  Moving isn’t just high volume – it’s all volume, you need to get everything: racks, pallets, desks and every last piece of product moved as quickly as possible to the new operation to avoid missed sales and risk being labeled unreliable.  Make no mistake about it – moving is not a job to perform with unreliable equipment.

That’s not all you have to consider either – is there adequate room in your new facility to merit the big, bulky equipment that you are currently running?  If there isn’t than upgrading to smaller, safer and more efficient powered carts like those offered by DJ Products is a very simple decision – just be sure to implement it prior to moving.

You won’t be able to ship or receive product during your move, so it’s absolutely integral to your future success to get the move completed as quickly and efficiently as possible so you can open for business again.  You don’t need any hitches thrown into the process by having a piece of equipment fail at the wrong time.  Upgrading to the best and most reliable material handling equipment prior to the move will ensure that you get into your new facility with as few headaches as possible and that you can resume regular businesses soon as possible upon getting settled in your new building.

Ergonomic Equipment Cuts Strain on Depleted Workforce

News continues to look dire for the labor market. The Conference Board Employment Trends Index, or ETI, continued to decline in October. Down nearly 12% from a year ago, the index fell to 105.3 in October, a further 2% decrease from its September level. And the future isn’t looking good, said Conference Board Senior Economist Gad Levanon who predicts continued deterioration of the labor market and rising unemployment rates well into 2009.

“The economic developments of the last two months made it clear to businesses that demand for goods and services in the U.S. is declining, and businesses are responding by aggressively slashing their payrolls,” said Levanon in an interview published in Manufacturing & Technology eJournal. “Unfortunately, it seems this environment will persist for several more quarters and business leaders will continue reducing their workforce.”

Published monthly by the Conference Board, a global non-profit business organization that monitors and forecasts economic trends, the ETI is a compilation of eight labor-market indicators:

  • percentage of workers who find jobs “hard to get”
  • initial unemployment insurance claims
  • percentage of companies with job openings
  • number of temporary hires
  • number of part-time workers working for economic reasons
  • number of job openings
  • industrial production rates
  • real manufacturing and trade sales

Whether we like it or not, in a recession most businesses are forced to trim labor costs in order to survive. It’s happening in every sector of U.S. economy. From retail sales to office workers to manufacturing, layoffs are occurring, workforces are being downsized and retiring workers are not being replaced. This means fewer workers must shoulder greater burdens if production quality and output are to be maintained.

Ergonomically-designed equipment easily enables a single worker to do a job that may previously have required two or more workers when performed manually. By transferring physical effort from the worker to the equipment, ergonomically-designed carts and equipment movers allow business owners to effectively reduce their workforce without taxing their workers.

Ergonomic equipment is designed to prevent the expensive and debilitating musculoskeletal injuries that plague manual pushing, pulling and lifting tasks.  The introduction of ergonomic equipment and ergonomic practices into the workplace have been shown in countless studies to immediately reduce worker injury, decrease associated medical and insurance costs and improve worker morale and productivity.

To find out how ergonomically-designed equipment can help you maintain production values with a depleted workforce, talk to the ergonomic experts at DJ Products.

Material Handling Solutions for Big Box Stores

With the current state of the economy, everyone is trying to do whatever they can in order to save some money.  That has many consumers buying in bulk at big box/outlet stores in an effort to spread their money out just a little bit more.

Outlet stores operate like a cross between a warehouse and a retail establishment, which poses some differences and potential problems with actually getting the material from receiving to the sales floor where customers have the opportunity to purchase.

It’s absolutely crucial for these types of environments to have safe and reliable equipment in order to meet the customer’s needs.  The employees need to be able to move large quantities of product literally among the customer base during business hours, so safety is a huge concern.  No outlet store can operate successfully with loud and difficult to operate equipment – all material handling equipment needs to be easy to operate and not overly disruptive to the consumer experience.

Once the safety of the employees and customers has been taken care of, reliability is the second biggest concern.  Even the slightest failure of material handling equipment in a big outlet store could spell disaster as much of the material moves directly from receiving to the sales floor in bulk loads.  If the equipment is not functioning for even a short period of time, there could be dozens and dozens of lost sales and potentially lost customers.

Properly trained, reliable employees and reliable equipment are two of the biggest keys to the success of big box and outlet stores.  Reliable equipment ensures that the material hits the sales floor in a timely manner and is available for sale when the customers are looking for it.

Downsizing without Alienating Customers

In this economy, where it’s been exceedingly tough to generate more income due to the fact that fewer individuals and businesses are spending quite as freely as they were once capable,  reducing overhead has been the easiest way for warehousing and logistics companies to maintain profitability.  Usually the two largest areas of expense lay in employees and in rent, and since it’s impossible to run a material handling business without employees, many companies are doing what they can to reduce the amount of money they spend per month on rent.

The biggest problem with shrinking your operating space is the risk of not being able to fully serve your customers – the only way reducing overhead works to maintain profitability is if it doesn’t cause the loss of some of your sales.  This means that a warehousing or distribution company needs to carry as much inventory and maintain the very same fluidity of operation, but they need to do so in a smaller space.

Though this may not sound very realistic, with the right employees and the right equipment it is very possible.  Lifts and carts from DJ Products are consistently reliable and easy to maneuver in even the tightest of spaces.  These quiet and ergonomic carts are among the safest in the business for warehousing employees to operate and they allow just one user to move a multitude of smaller items or a few heavy items without enlisting anyone’s help.

A few well trained employees who have access to the best material handling equipment can perform a task much more efficiently than a full crew trying to operate outdated equipment that could be prone to failure.  When an incoming shipment can be received and appropriately stationed to go into stock or to go out for an order, then either put away or shipped more quickly and efficiently – a warehouse is able to successfully operate in a potentially much smaller environment.

More Companies Going Forklift-Free

An increasing number of companies, particularly in the manufacturing, warehousing and logistics industries, are moving toward a forklift-free environment. Safety concerns and maintenance costs are the primary factors driving this major change in material handling application.

According to a recent study by the Hyster Company, a major manufacturer of forklift trucks, only 6% of end-users know their real forklift maintenance costs and few have implemented programs to reduce those costs. Over the 20-year life of a forklift, 80% of the total costs are operating expenses. Ownership accounts for only 20% of a forklift’s total cost. The Hyster study estimates that American businesses waste more than $1 billion per year in unnecessary material handling operating costs.

Far more expensive are the human loss and liability costs directly tied to forklift injuries each year. Each year, nearly 100 U.S. workers are killed in forklift accidents and another 20,000 seriously injured. Forklift overturns cause 25% of forklift-related deaths. Medical expenses, insurance costs, workmen’s compensation and lost man-hours associated with forklift accidents cost American businesses millions of dollars each year.

According to John Neuman and Larry Tyler, writing in American Machinist, a forklift-free program can have multiple benefits, including:

  • reduced inventory,
  • improved material flow,
  • reduced line-side handling equipment,
  • reduced floor space,
  • increased cycle efficiency,
  • increased floor coordination,
  • increased stocking efficiency, and
  • decreased operating costs.

On the human side, a forklift-free environment improves investor, worker and public perception of a company’s attention to safety. It improves worker ergonomics, efficiency and production and decreases expensive lost man-hours, medical, insurance and liability costs.

Next time: Implementing a forklift-free program.

Avoiding the Number One Citation from OSHA

According to statistics released in publications for the Occupational Safety and Health Administration (OSHA), the number one reason for citations in warehouses across America is the forklift.  This makes perfect sense if you consider that more than 100 individuals die each year as a result of forklift related accidents and that nearly 100,000 people are injured in forklift incidents every single year.

If your employees, even ones that have been driving your forklift for a substantial period of time, don’t closely adhere to the proper safety guidelines when driving, they are putting themselves, other employees and your entire operation at risk.  Forklifts can be a huge asset to the warehouse and material handling environment, but only if they are used in a consciously safe manner.  Many forklifts are also loud and run on combustible fuels, which can add another element of risk to operation and storage.

Though forklifts have many potential benefits, if you run a warehouse or distribution center, there may be safer and easier alternatives to your material handling needs.  Battery powered carts from DJ Products create no noise pollution and operate free of combustible fuels – they are powered by a long life battery that can easily handle an entire, fast paced shift on a single charge, making them much more efficient and much less expensive to operate than a traditional forklift.

Keeping your employees safe is integral to running a successful business and the battery powered carts from DJ Products are designed with employee safety in mind.  All carts are ergonomically designed to prevent over use injuries and the overall operation is so simple that a single employee can transport heavy loads safely with very little physical effort.  This gives your employees the power to perform work as quickly as they could with a forklift, without the potential hazards often associated with forklift operation.  By trading in the biggest risk of employee injury for a much safer alternative you can greatly increase your company’s overall productivity while at the same time reducing risks to your valuable employees – that’s a winning situation for everyone.

Products to Help Your Business Go Forklift-Free

There’s a growing trend, particularly in manufacturing, warehousing and logistics environments to go forklift-free (see our June 11 & 13 posts). An increasing number of businesses are choosing to replace forklift trucks with safer, ergonomic material handling products that are cheaper to own and operate. As we noted, going forklift-free can result in considerable savings in production and maintenance costs while significantly decreasing worker accidents and injuries and their associated medical, insurance, workman’s compensation and lost man-hour expenses. DJ Products can help your business transition to a safer forklift-free work environment.

At DJ Products we manufacture a full line of electric cart pullers and motorized cart pushers and tugs. Our products are ergonomically designed to eliminate the pain and strain of manually pushing and pulling heavy carts and wheeled equipment. Smaller and more maneuverable than traditional equipment like forklift trucks, walkies and riding tugs, you’ll also find our products to be less costly to purchase and maintain. Implementing forklift-free solutions with DJ Products equipment offers multiple benefits, including:

  • Decreased operating costs, particularly equipment purchase and maintenance costs,
  • Decreased floor space needed to maneuver equipment,
  • Decreased worker injuries and attendant medical, insurance, workman’s compensation and lost man-hour costs,
  • Decreased liability,
  • Increased plant safety, 
  • Increased worker morale, and
  • Increased efficiency and productivity. 

DJ Products can help you plan your transition to a forklift-free environment. We specialize in solving ergonomic material handling applications with battery-powered, walk-behind tug and tugger solutions. Many of our motorized cart products can be custom configured for adaptation to almost every heavy cart pushing or pulling application. Click here to request a free brochure or video about DJ Products’ ergonomic solutions. We also offer a free demo trial program so you can try out a CartCaddy cart pusher at your facility before purchase. Our expert Sales Engineers can discuss the details of your particular application and suggest ergonomic products that will provide the appropriate solution. Click here to contact a DJ Products Sales Engineer and begin your transition to a safe, cost effective, forklift-free work environment today.

Learning to Think Sustainably

Supply Chain Sustainability and Green Sustainable Supply Chain are the coming watchwords in the material handling and logistics industries (see our July 7 post). A green sustainable supply chain is the process of using environmentally friendly resources to create products that when used — and also when eventually discarded at the end of their life cycle — break down into components that either benefit the environment or can be recycled to create new products without harming the environment. 

“The whole idea of a sustainable supply chain is to reduce costs while helping the environment,” explained Patrick Penfield of the Whitman School of Management at Syracuse University in a 2007 article for MHIA’s publication On the Mhove. To gauge the cost savings of a sustainable supply chain requires that businesses think in terms of the life cycle costs of a part, piece of equipment or process. It’s merely the next step in the evolution of cost analysis, argues Penfield. “In the past,” he says, “most companies were focused on reducing unit costs. Many companies later evolved into looking at total landed costs with the onset of global trade. Companies also started looking at the usage costs with a piece of equipment.” Figuring costs based on the total life cycle of a part, piece of equipment or process is simply taking an even broader view of cost analysis.

Approaching business and industry from the broad outlook of sustainability “could be a tremendous weapon for companies to reduce costs,” Penfield believes. “There are many facets of the supply chain that could be improved by looking at it from a sustainability standpoint.” Today, companies worldwide are reviewing design and production processes and redesigning those processes to use fewer resources and less energy. In one example, Interface Corporation, a leading maker of materials for commercial interiors, decreased the horsepower requirements of a pump system by 92% simply by using shorter, fatter pipes than originally called for. Their engineer’s redesigned system “cost less to build, involved no new technology and worked better in all respects,” Penfield points out.

Next time: Using sustainability to create a competitive edge

The Barcode Turns Forty What Will Replace It

Do you remember when barcode scanning was the new cutting-edge technology for distribution center operations? It’s hard to believe, but that was 40 years ago. As the industry considers new systems such as radio frequency that may take its place, it’s a good time to take a look at the current state of the barcode.

Barcodes brought automation to a task management process that had previously been done manually. Keeping records on paper is cumbersome and inaccurate, resulting in errors and inefficient operations. Despite these drawbacks, a recent study found that 27 percent of distribution centers are still using paper for many of their workflow procedures.

The barcode has been instrumental in streamlining basic warehouse functions such as receiving, picking and replenishing. The rise of direct-to-consumer operations has increased demand velocity, making rapid movement of merchandise through the facility even more imperative.

Food safety is another factor driving the importance of automated data capture. The Food Safety Modernization Act was instituted to compel growers, wholesalers and other members of the foodservice industry to follow more rigorous recall procedures. With consumer safety at stake, the precision of barcodes allows for more effective tracking of food items at every stage of the delivery process.

No matter what type of task management system you use, electric-powered tugs and tows from DJ Products remain a constant element of safe and efficient warehouse operations. Visit TeamCartCaddy.com and let one of our friendly Sales Engineers help you find the perfect solution for your material handling needs.

Using Sustainability to Create a Competitive Edge

Being eco-friendly is increasingly considered a social, political and economic advantage in U.S. business and industry — and, therefore, a competitive edge. Forward-thinking companies are using environmental initiatives and dedication to sustainability to create advantageous public opinion. Cutting edge, eco-friendly solutions gain customers. The extreme, sometimes almost rabid, level of dedicated customer loyalty, despite sometimes higher consumer costs, has been an unexpected benefit. An increasing number of ecologically-concerned Americans are willing to pay more for products and services that protect or sustain the environment. Interestingly, consumers view this as a way of partnering with industry to save the environment.

More industries are pursuing sustainability to reduce the life-cycle costs of parts, equipment and processes (see our July 9 post). “Anything not in a product is considered a cost; it’s a sign of poor quality,” say the authors of Green to Gold in explaining 3M’s Pollution Prevention Pays program. “As 3M execs see it, everything coming out of a plant is either product, by-product (which can be reused or sold), or waste. Why then should there be any waste?” As the authors point out, 3M views waste as unrecouped expenses and something to be avoided. The company’s goal is 100% sustainability.

Sustainability is not limited to the direct costs of business and industry. Savings can also be realized in indirect costs such as packing, transportation and other logistics considerations. Eco-friendly smart packages that reduce cardboard and filler save resources and money. Replacing gas-guzzling forklifts with energy-smart electric and motorized carts and tugs is another environmentally smart way to cut costs. Optimizing shipping loads and delivery strategies can result in significant cost savings given skyrocketing fuel prices.

Implementing a sustainable supply chain also eliminates or reduces the amount of money spent on disposal of harmful by-products, scrap and adherence to regulatory issues. In many instances, by-products previously disposed of as waste are now generating viable revenue sources for environmentally-conscious companies. Sustainability is already being used to competitive advantage by many companies who have found it a profitable way to grow market share in their industry.