Outsourcing Logistics Expected to Revolutionize Warehousing

A shift toward logistics outsourcing could spell revolutionary change for the warehousing industry that could result in leaner, more efficient business models. That was the conclusion of logistics industry experts speaking at the recent Warehouse Educational Research Council’s (WERC) annual conference in Chicago.

“In the 20th century the common business model was a large integrated company that owned, managed and directly controlled its assets,” Andy Dishner, senior director of client solutions for TMSi Logistics, told conference participants. “But in this new century we have seen a major cultural shift toward outsourcing many key functions. It really comes down to evaluating whether logistics is your core competency.”

Damian Burke, a principal with logistics consultancy Conveying Solutions Inc., joined Dishner in urging the warehousing industry to streamline logistics. Currently, companies are forced to split their resources by handling their own logistics, an area in which they may not have sufficient expertise. Burke said many companies are turning to third-party logistics providers (3PL) to solve their logistics problems. By outsourcing logistics, companies can concentrate on their primary business and leave the logistics to experts, thus streamlining their own operations.

While recommending the use of 3PLs to handle company logistics, both Burke and Dishner reminded conference participants that they could not afford to ignore logistics management. “We realize that a lot of manufacturers realize that it could be professional suicide if the choice [of a 3PL] doesn’t work out,” Dishner said. “Relationships and measurements are key,” Burke added. “We are certainly not advocating reckless investment in systems you don’t trust.”

Your Job and Low Back Pain

If you’re reading this, the odds are that you’ve either experienced low back pain or you will sometime in the future. Low back pain is the leading cause of  work-related disability and a frequent reason for job absences. It’s also the second most common neurological disorder in the United States, behind only headaches.

These injuries frequently occur on the job because one of the main causes is lifting heavy objects, particularly over a period of time. This can result in a sprain or spasm in one of the back muscles or ligaments. Minor injury such as this often improves after a short period of rest.

More serious problems occur when your back is subject to repeated stress. This can result in a bulging or ruptured disc which in turn places pressure on a nerve. Irritation of the nerves is what causes the pain. If this pain becomes chronic, the situation can continue to deteriorate and work activities become increasingly difficult. Repeated injury also causes buildup of scar tissue which makes the back less flexible.

Material handling jobs involve conditions that can easily result in lower back pain. If your work involved moving large carts and other equipment, material handling tugs like our Power Tugger will help prevent injury. They enable one person to easily handle loads of up to 10,000 pounds. Ergonomic design means they also place less stress on your upper body.

Whatever your material handling needs are, DJ Products has a solution that fits. Our Sales Engineers are standing by at 800.686.2651 to answer any of your questions.

Education That Will Forward Your Material Handling Career

Material handling offers good growth potential now and for the future. It is also becoming increasingly automated and technical (see our Sept. 29 post). So how can students interested in material handling as a growth career and current workers who want to move up position themselves to be in demand by employers today and into the future?

Industry experts agree that education is the key. While a high school diploma can still get you an entry-level job on the warehouse floor, it will take certified skills to maintain that job as the level of technology accelerates through the material handling, warehousing and logistics industries. Moving up the corporate ladder will increasingly require a bachelor’s degree. If you aspire to a management position, plan on putting in that extra year or two to get your MBA. Some colleges now offer concurrent bachelor/MBA programs and many offer night, weekend and online courses. Executive MBA programs geared to working business professionals provide an accelerated path to a higher degree by recognizing acquired experiential knowledge.

“Going into the future, not many people will have much success in their career progression without professional development of some kind,” warned Mark Ensby, director of Clarkson University’s Engineering & Global Operations Management Department. “The three most important credentialing letters today seem to be ‘MBA.'”

As automation and the global economy drive industry to greater integration, versatility and cross-industry knowledge will be increasingly valued. Students who combine material handling courses with industrial engineering, logistics, supply chain, warehousing, project management and computer systems studies will best position themselves for the future.

Partnerships between industry associations and universities are also expected to increase experiential learning. As it moves toward the future, material handling and associated industrial engineering industries will be looking for graduates with experiential learning, not just theoretical knowledge. “Associations like MHIA are going to play more and more of an important role in leveraging universities as the provider of skilled employees,” predicted Dan Boos, president of consulting firm Gorillas and Gazelles.

Mark Tomlinson, executive director of the Society of Manufacturing Engineers, has called for public schools to place greater emphasis on manufacturing as a viable career choice. Industry pressure is expected to increase two-year technical training opportunities in manufacturing, material handling, and industrial engineering fields. Tech schools, some beginning at the high school level, are seen as a quick way of solving the looming worker shortage in these industries. “The challenge is there just isn’t going to be enough of anybody for what’s needed,” Boos said.

“Over their lifetime, many of them (high school grads) will earn more because they started working sooner than those who took four or five years to finish college,” Tomlinson pointed out. “So we’ve got to get away from a good job/bad job mindset and encourage people to get some training.”

Bigger isn’t always Better

Staying operational in rough economic waters sometimes means having to make some big changes – one of those changes that some distribution centers are making is to open more locations.  Opening more locations doesn’t really sound as though it would be a good way to cut costs and increase the bottom line; but if those new locations are smaller and better equipped to serve the customer – it can certainly be a way to turn more of a profit.

Many companies are looking to eliminate extremely large facilities that carry high overheads in terms of rent and utilities in favor if smaller, lower cost buildings that are able to deliver service at faster speeds.  One large centralized location that is capable of carrying plenty of inventory does have some advantages, but multiple locations that are strategically placed can have many more benefits when it comes to provide quick and accurate service to customers.

It can be quite a bit easier to keep track of product in a smaller and well organized building, everything needs to be processed and put away upon arrival because your employees won’t have the extra space for product to sit around on pallets.  With your entire inventory put exactly where it needs to be up receipt, there won’t be any room for error – inventories will be easier to control and orders won’t be lost due to misplaced product.

Bigger isn’t always better in terms of equipment either and when distribution centers shrink down in size to become faster and more effective, they often need their material handling equipment to do the exact same thing.  In a small and fast pace environment, you can’t afford to have over-sized, unreliable and outdated equipment – you need carts and lifts like those offered by DJ Products; equipment that is small, easy to use and that will last an entire shift (or more) on a single charge with no fear of failure.

Your employees will be moving at lightning speeds in order to process customer orders; they’ll need safe, effective and reliable equipment to help them perform their job properly – equipment like the carts and lifts offered by DJ Products.

How to Create a World-Class Warehouse

There are five essential steps to creating a world-class warehouse, according to Dr. Edward Frazelle, founder of The Logistics Institute at Georgia Tech and director of the school’s Logistics Management Series. A pioneer in modern logistics, Frazelle is an industry legend who has trained more than 50,000 logistics professionals and coached countless companies and government agencies in achieving logistics excellence.

  1. Profile. Frazelle believes in creating profiles of every element of a warehousing operation. Profiling order, activity and planning activities makes it possible to identify the causes of problems as well as pinpoint opportunities for improvement.
  2. Benchmark. It is necessary to determine a benchmark for warehouse performance, practices and infrastructure against which comparisons can be made to worldwide standards or future achievements. Benchmark comparisons allow you to determine the need for improvement or new technology.
  3. Innovate. Based on the information obtained during phases 1 and 2, warehouse processes are streamlined and made as efficient as possible.
  4. Automate. Computerize where possible to increase efficiency and productivity. Computerization should focus on simplifying tasks, increase performance and maximize resource use. Mechanize where justified to maximize production and storage density and to assist operators in performing complex tasks.
  5. Humanize. Involve warehouse operators in the redesign process. Recognize individual performance, promote team goals and implement ergonomic improvements in every possible warehouse activity to safeguard your workforce.

The order in which the above 5 elements are applied to warehouse design and redesign is important, warns Frazelle. Keep in mind that:

  • Design adjustments are much easier and cheaper to make in the early profile and benchmark phases.
  • Mechanization investments are less flexible and more expensive than computerization.
  • Protect your workforce. Ultimately your most valuable resource is your workforce. They are your last element of consideration only because your workforce requirements will be dictated by the preceding elements.

Frazelle’s five elements of warehouse development can be successfully utilized to design a warehouse master plan, redesign existing operations, develop requirements for management systems and guide improvement projects.

SJF Material Handling Checks In

We were delighted to hear from one of our Minnesota brethren this week. Kent Powell of SJF Material Handling, Inc. in Winsted, Minnesota, just a couple of hours down the road from our home office in Little Falls, ran across our blog and dropped us a line.

SJF is a material handling equipment supplier and consultant. For more than 25 years, they’ve been providing new and used material handling equipment from their Minnesota base. Their Genesys division designs and engineers cutting-edge material handling and distribution systems. Services include customized consulting, layout/design, engineering and control programming services for warehousing and distribution-based industries.

You’ll find the SJF Material Handling Blog an interesting read and will want to add it to your list of “favorites.” Their blog focuses in large part on the steel market that provides the raw material for the conveyors, pallets, carousels, rack and other material handling products they sell. It provides readers with another level of insight into the issues that concern our industry today.

DJ Products manufactures ergonomic electric cart pullers and motorized cart pushers for the manufacturing, distribution, warehousing, logistics, automotive, healthcare, hospitality and retail industries. We specialize in ergonomic material handling solutions that eliminate the strain and resultant injury that occurs from manually pushing or pulling carts and wheeled equipment. We’re one interesting cog in the larger material handling wheel, as is SJF Material Handling. We know there are others out there and we want to hear from you.

We invite our readers and others who share our interest in material handling and its applicable industries to share your comments. Alert us to other interesting websites and blogs that we can share with our readers. Drop us a comment if you read an interesting blog post. Share your own experiences or concerns or let us know what you’d like to hear more about. Our goal in creating the DJ Products blog is to share news, information and insights about material handling. We’d love to hear from you. Drop us a line.

Diversification and the Willingness to Grow

Stocking distributors and manufacturer’s representatives are finding themselves in a position where they have to play the roll of the chameleon, constantly changing to meet their customer’s needs in the ever changing construction environment.

When you are in a field where the products are constantly evolving to meet the end users unique needs it’s difficult enough to try and keep up with the trends, but when the ravaged economy is wreaking havoc with your and your competitors’ businesses you need to truly be the most versatile business you can be in order to remain successful.

Your closet competition may be forced to close its doors, which could open up an area of the market that you were previously unable to service – but in order to attack and hold onto that business you may need to add new product without losing a step in terms of serving your customer.

This type of rapid fire adaptability requires you to have the most reliable and easiest to use equipment in order to be able to receive and fill orders at the rate necessary to meet existing and new customer needs.  You can’t have your employees fumbling with outdated machinery that is prone to failure, or with manually moving thousands of pounds of product due to the fact that there is no fuel in your lift or charge left in its battery.

DJ Products offers battery operated lifts and carts that are designed to meet the demands of the fast paced atmosphere of material handling.  These lifts and carts are among the safest, most reliable and most versatile available – each ergonomically designed to not only get the job done, but to keep your employees safe while they are doing it.

Whether you are feeling pressure from an influx of new product and new customers or just trying better your business status enough to not become a statistic, the right equipment for the job is necessary to exceed your previous level of productivity.

Five Important Dock Safety Tips

Warehouse safety begins at the receiving and shipping docks. Safe dock procedures set the stage for the safe unloading, handling and storage of materials as well as the packing, loading and shipping of product. Identifying and addressing ergonomic challenges on the dock can directly impact worker safety and dock productivity. “You have to look at everything from what kind of trailer you’re going to receive, to whether the load is floor-loaded or unitized to what happens to it after it comes off the truck. Even the temperature inside the facility and the weather are important,” explained Brent Tymensky, VP of design engineering for Fortna Inc.

Dock safety begins with attention to five important issues:

  • Trailer access. The length, width, height and suspension system of a trailer generally determine the dock equipment needed. Other considerations include whether the trailer is dry or refrigerated and whether the load is unitized and fully cubed.
  • Dock conditions. Temperature and weather impact dock worker safety and efficiency. A canopy that keeps out cold, heat, wind, rain and snow improves working conditions and worker comfort. Air-inflatable dock seals can form a tight barrier around a trailer, keeping out the weather and reducing energy costs.
  • Personnel issues. The age, experience and physical condition of your workforce are factors that determine how and when automated and manual equipment are used. Adjustable conveyors that reach into a trailer can assist with manual unloading and loading procedures, reducing the physical strain on workers. While some palletized loads can be off-loaded as is, many pallet loads must be broken down manually into their components for use or proper storage. Adjustable carts and tuggers can make this work both easier and safer for dock workers.
  • Dock safety equipment. Vehicle restraint devices prevent trailers from exiting prematurely while workers are still on the trailer. Restraint devices range from simple wheel chucks to automated systems that bolt into the cement dock and attach to the trailer’s rear guard. A newly marketed interlocking device attaches to the trailer brake emergency airline to prevent the trailer from moving until the dock ramp is removed and the dock door closed.
  • Productivity and efficiency. Dock levelers, extendable conveyors and palletizing equipment all increase efficiency in retrieving and loading materials and goods. Trailer drop can significantly hinder the transition from the trailer to the dock. Levelers and vehicle restraints that support the rear of the trailer can eliminate trailer drop as equipment is moved into the trailer for loading or unloading.

“Where do you get off …?” Why DJ Products Talks About Economy, Politics

We cover a lot of ground in the DJ Products’ blog: general material handling news, business and production tips, product specifications and applications, industry trade shows, ergonomics, government regulations, and manufacturing forecasts. To the apparent annoyance of some of our readers, we also discuss the economy and politics.

It’s our view that today’s astute business person is interested in a broad view of the business world, as opposed to a narrow, industry-specific perspective. Because he/she realizes that American business does not exist in a vacuum, the savvy business person is interested in not only what’s in front but what’s coming over the horizon. It’s the economic and political landscape of our country that shapes that future view.

One of the purposes of this blog is to provide a forum for discussing those broader forces that affect U.S. business. If our readers just wanted to learn about DJ Products’ ergonomically-designed carts, tugs and movers, they could visit our website. But we think they want more, and we’re not the only ones. Many industry bloggers stray off their own narrow subjects to address the greater concerns of business. And, like us, they get the occasional reader comment, “Where do you get off ….” talking about the economy or politics or whatever annoys the reader. 

Mike Botta addressed this issue in his March 2 post on the Industrial Equipment News blog. Botta labeled it “Stimulosis Psychosis,” which he defined as “a rare disorder that causes people to temporarily lose touch with today’s economic, political and business realities.” Botta has run into the same issue we have: Blog readers complaining that they prefer to get their economic and political news from other sources. It seems to be a question of bona fides. While we agree that we are not national experts in the field of economics or politics, who better to discuss how the broad concepts bandied about in Washington will actually affect the businesses forced to apply them than the business owners tasked with the job?

An excellent case in point is national ergonomics standards. Ergonomics standards have waxed and waned with Washington’s shifting political winds: in with Clinton, out with Bush, coming in again with Obama. While business owners generally support ergonomic measures because they increase production, lower overall costs and improve worker health and safety, the state of the economy has many worried about the expense of implementation and reporting procedures if the feds get involved.

Politics and the economy are all part and parcel of doing business in America. It’s like Botta, who writes about industrial equipment, says in his blog, “No Industry = No Equipment.” Without a viable U.S. industrial community, material handling firms have no market for their equipment. A healthy industrial community is dependant on a healthy economy and, right now in particular, a healthy economy is dependant on politics.

How Ergonomics Increases Productivity and Quality

In our last post we talked about how ergonomically designed material handling equipment improves worker health and safety by reducing expensive and potentially debilitating musculoskeletal injury. Business owners also realize measurable increases in worker productivity and product quality when ergonomic equipment and procedures are introduced into the workplace.

Most industrial equipment and work procedures were originally designed for occasional use, not the high-pressured, repetitive, long shifts found in the modern work place. By designing equipment that adjusts to the physical size and capabilities of each individual worker and by structuring work procedures to eliminate uncomfortable body positions during task performance, ergonomics decreases fatigue on muscles while increasing worker comfort. This enables workers to continue working comfortably without the frequent breaks they would otherwise need to stretch and rest tired muscles. Workers remain fresh and energized and can work comfortably through an entire shift. The result is decreased injury, better worker morale and increased worker productivity resulting in improved product quality. Ergonomics produces a win-win scenario for business owners and their employees.

Implementation of an effective ergonomic plan requires a three-pronged approach that involves engineering, administration and work practice modifications.

  • Engineering modifications may include changes in equipment and tools used, workstation modifications and changes in the way tasks are performed. Because engineering modifications produce the greatest reduction or elimination of physical risk, they also result in the greatest cost savings. Reduced physical risk reduces the medical, insurance, disability and lost man-hour costs of potentially debilitating musculoskeletal injury. On its website, DJ Products provides an invaluable Ergonomic Load Calculator that can be used to estimate the force needed to move loads in a variety of workplace environments and recommend ergonomic solutions to your material handling problems.
  • Administration modifications involve alterations to the work organization and/or workplace culture. While less expensive to implement, results are also less reliable in that they depend entirely on human compliance. Administrative modifications may include education and training in ergonomic procedures, restructuring job responsibilities to minimize repetitive tasks, worker/task rotation, increasing the frequency or duration of break periods for certain tasks, improving workers’ physical conditioning and developing oversight programs.
  • Work practice modifications include the development of ergonomic procedures for the performance of each individual task, worker training and oversight.

The initial investment in ergonomics may seem to be considerable, but the benefits — and long-term savings — far outweigh the costs and continue long after the initial investment is recouped.

Monday: How ergonomics saves money