Tag: logistics

ProMat 2009 to Demonstrate Supply Chain Solutions

Well having spent 20 bitter, cold winters in Chicago shoveling endless mounds of snow, I have to admit that when I got my invitation to ProMat 2009, I was underwhelmed about the offer to “join us in January in Chicago.” However, you can’t fault Chicago for its exciting city life, excellent restaurants, magnificent skyline and ever-patrolling army of snowplows, so I’m game for another frosty experience in the Windy City. And who could miss the Material Handling Industry of America’s annual international exposition? ProMat 2009, Solutions that Make the Supply Chain Work, promises to provide an invigorating look at the hot new trends and innovations in material handling and logistics.

ProMat will showcase more than 800 solution-packed exhibits from top equipment and technology providers in the material handling and logistics industries. It’s your opportunity to not only talk to the pros but see their solutions to industry applications in action. Given the country’s current economic problems, I think we can all benefit from solutions that promise to streamline operations, increase productivity, reduce costs, improve customer service and improve our bottom line.

I’m particularly looking forward to Forrest Sawyer’s moderation of the keynote discussion on building the workforce of the future. We’ve discussed in this space before the workforce challenges that will face our industry in the coming years: retiring boomers, declining worker population, increased workforce diversity, life/work balance and a move toward more technical skill sets. These issues aren’t going to go away and we, as an industry, need to develop strategies for embracing the challenges of the future.

We’ve also talked in this space about the globalization of material handling, logistics and industry in general. With buyers and sellers from more than 90 countries in attendance, ProMat offers an opportunity to start making connections so you’ll be ready to flex your global wings.

Education is always a major focus of the annual MHIA show. This year’s Knowledge Center will bring 100 Educational Seminars to the show floor, all free to attendees, as is the keynote discussion. Seminars will focus on the latest material handling and logistics trends and innovations for manufacturing, distribution, and supply chain operations.

ProMat 2009 will be held from January 12-15, 2009 at McCormick Place South in Chicago, Illinois. Plan to go and learn about emerging trends and leading edge developments in the industry. See solutions in action and talk to their purveyors. Network with other professionals from across the country and around the globe. ProMat 2009 is your chance to learn, explore and rekindle your passion. For complete information and registration, visit the ProMat website.

Part I: Trends Challenge the Material Handling Industry

In the June issue of MHEDA Edge, Steven Little, a keynote speaker at MHEDA’s recent annual convention, recapped six important worldwide trends that are already beginning to affect the material handling industry. Some trends are still in an embryonic stage with the development of applications capable of impacting our industry years in the future. Others are already making their presence known and changing the way we do business today.

We agree with Mr. Little that the following six trends are poised to change the material handling industry. We have added our own thoughts about the challenges these trends will pose as we move toward the future. We invite your comments on how our industry can best meet these coming challenges.

  1.  Demographics. The world’s population is aging. The U.S. isn’t the only country affected by the aging of post-WWII baby boomers. A quarter of Japan’s population is older than 55. Half the population of Western Europe has passed the half-century mark. On the other end of the scale, the number of collegiates in the U.S. is slowly increasing, indicating a potentially better educated employee pool. Changing demographics influence social values, politics and business processes, forcing a rethinking and restructuring of the ideas and systems that drive society — and business.
  2. Urbanization. Cities worldwide continue to grow larger. By 2000, 25 cities boasted populations greater than 10 million. By 2025, 62% of the world’s population is expected to live in cities. The logistics of providing for the needs of these compacted populations will require new thinking and applications.
  3. Immigration. Within a decade, Spanish will be the primary language spoken in 20% of U.S. homes. As with the 19th century influx of English-speaking immigrants — Irish, Scottish and British — Spanish-speaking immigrants are bringing a wealth of very diverse cultural differences and customs to our shores. America will again need to meet the challenge of assimilation, a process that always engenders significant change.

To be continued Monday.

Part 1: Why Businesses Fail

Almost daily I read about the failure of one business or another in the business section of my local newspaper. The economy is down, credit is tight and fuel prices are through the roof. Naturally these conditions place an additional strain on businesses. But generally when a business fails there were already underlying fissures in its structural foundation that caused it to crack and break under the pressure.

Businesses fail for many reasons, the most likely being one or a combination of the following:

  • Lack of a business plan or failure to update the business plan to account for changes in the industry, economy and society. Business is not static. You should review your business plan annually and adjust it to take advantage of changing markets, new products and technologies, financial incentives, and customer preferences.
  • Lack of current financial data or failure to fully understand financial reports. Finance is the language of business. You don’t have to be able to write it (that’s why you have an accountant or CFO, but you do have to be able to correctly read and understand financial statements.
  • Lack of capital. If you’re starting a business, minimum start-up capital should be enough to cover your first six months of operation. However, once you’re up and running, don’t confuse capital with operating funds or cash flow. Growth capital should be used to grow, improve and expand your business. You should generate enough monthly income to provide a healthy cash flow and cover operating expenses. If your business is in trouble, borrowing more money isn’t the answer. If you can’t service your current debt load, you won’t be able to service an increased debt load.

To be continued