Modern Warehouse Operations – Are You Ready?

How Can We Better Approach the Evolving World of Warehouses in the Digital Era?

In the past, warehouses have traditionally centered around physical labor and manual processes. Today, technology has been making its presence felt in sophisticated warehouse equipment and operational methods.

Here are five major trends that are currently shaping the direction of modern warehouse operations.

Big Data

Technology gives warehouse management access to an unprecedented amount of data. With careful and efficient analysis, this data can enable a greater degree of accuracy in functions such as predicting customer demand and identifying areas that need improvement.

Driverless Vehicles and Autonomous Equipment

Automatic guided vehicles (AGV), the first wave of driverless vehicles, have limited movement and require significant human intervention. The field is transitioning to semi-autonomous vehicles, which will eventually give way to fully autonomous vehicles that operate entirely on their own.

Autonomous equipment ranges from conveyor systems and scales to automated storage solutions. In the next three to five years, many warehouses will make significant moves to integrate robotics for tasks such as order picking and palletizing.

Mobile Devices

While mobile technology has been implemented in warehouses for more than 10 years, it’s been restricted to RFID and handheld barcode readers. Tablets and smartphones are familiar to nearly everyone, so it’s been a natural process to bring these devices into the warehouse industry.

Internet of Things (IoT)

With the influx of available data, IoT facilitates collection by tracking and coordinating the relevant warehouse equipment.

Cloud Computing

As mobile devices become a bigger part of warehouse operations, their low cost of ownership and small IT footprint have made cloud technology an effective solution.

Modern Warehouse Equipment from DJ Products

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Same Day Deliveries Fuel Warehouse Growth, But Is It Sustainable?

Powered Carts to Move Warehouse Stock
Powered Carts to Move Warehouse Stock

As e-commerce continues to change the way consumers shop, savvy customers are demanding immediate possession of their purchases just as they would have with brick-and-mortar stores. Retailers and fulfillment services are now in search of facilities and warehouse equipment to accommodate this need.

Most delivery services and third-party logistics providers can handle next-day delivery, but same-day delivery requires a different infrastructure. One real estate company in New York City believes it’s come up with a novel solution.

The Warehouse of the Future?

Innovo Property Group, in partnership with Square Mile Capital, plans to break ground next year on a two-story warehouse in the Bronx. The 700,000 square-foot facility is expected to be ready for tenants in 2020.

Andrew Chung, founder and CEO of Innovo, explains the factors that make the warehouse a game-changer.

– In order to provide expedited shipment, warehouses need to be as close as possible to customers. Unfortunately, urban areas generally have a scarcity of land and restrictive building regulations. Innovo’s warehouse is located in a “sweet spot” that offers access but avoids typical pitfalls of urban construction.

– The Bronx warehouse is designed with size in mind, from the high ceilings that will allow vertical storage racks up to 32 feet to floor loads that can handle capacity of up to 800 pounds.

– Thanks to 90 loading docks, a two-lane ramp and 130-foot truck courts on each floor, the warehouse will be one of only four facilities in the country with multistory direct loading.

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Tips to Retain Skilled Warehouse Staff and Lower Turnover

Improve Productivity of Your Order Pickers
Skilled Workers Help Your Operation with Improved Efficiency

No matter how state-of-the-art your warehouse equipment is, your business won’t be successful without skilled workers to operate it. Growing competition for a shrinking pool of qualified labor makes today’s workforce more fluid than ever before.

High turnover has a negative impact on productivity and profitability. Here are some strategic ways to attract and retain high-quality warehouse staff members.

Offer Good Benefits and Working Conditions

Everyone works for a paycheck, but money is not the only factor candidates look for in a desirable job. Experts cite unhappiness with company culture and limited career paths as major reasons why workers change jobs.

In addition to salary, consider these benefits when creating an employment package:

– Incentives such as bonuses, paid time off and off-site team-building activities

– Healthcare insurance

– Access to training and education

– Well-defined career options

Make Jobs More Attractive to Younger Candidates

As the workforce ages, the millennial generation has been reluctant to fill in the gap. Invite schools to visit your warehouse and learn more about the advantages of a career in supply chains and logistics. You can also set up apprenticeships or internships for local students.

Be Flexible with Working Hours

Traditional shifts are difficult to manage, especially since many companies now operate around-the-clock. An annualized hours model keeps payroll consistent while staffing is flexible to accommodate fluctuations in activity.

Analyze, then Train

Training is required for new employees, new warehouse equipment and new technology. Carefully assess your needs to ensure that the right people are trained for the right jobs.

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When Amazon Moves In, Warehouse Workers’ Pay Lags

Pay is a Crucial Combination
Pay is a Crucial Combination of Competitiveness.

It turns out, your warehouse equipment isn’t the only thing doing a lot of work for very little cost. Bureau of Labor Statistics (BLS) data shows a direct link between the introduction of an Amazon distribution center in Lexington County, SC, and a massive decline in annual earnings for warehouse workers.

Annual Earnings Fallen Over 30%

Since Amazon opened its Lexington distribution center in 2010, earnings for warehouse workers have dropped a staggering 30+%, falling from $47,000 to $32,000 annually. And Lexington’s warehouse workers are not alone…

Where Amazon Operates, Wages Decline

Other areas where the online retail giant has opened warehouses have likewise seen wages decline. In Chesterfield, VA, warehouse workers in the region have watched wages diminish 17%. In Tracy, CA, they have fallen 16%.

In areas where Amazon has opened distribution centers, government data shows warehouse workers’ wages fall an average of 3%, with workers in regions where Amazon operates earning around 10% less than warehouse workers employed elsewhere ($41,000 vs. $45,000/annually). Amazon operates over 75 fulfillment and 35 sorting centers across the U.S., employing 125,000+ full-time workers.

What’s Going on Behind-the-Scenes?

‘Stowers’ stock, ‘pickers’ pull items from shelves, and ‘packers’ box items. Constantly in-motion and monitored by devices that track performance, a single picker could collect 1,000-items and walk 15-miles in a shift. So why the dearth of pay?

Researchers point to a number of possible reasons:

– Warehouses erected in areas ‘left behind.’

– Areas have high labor-market concentration.

– Amazon is a major employer, outshining competition.

– A younger workforce. (Census data shows about half are <35.)

– Unskilled workers with minimal qualifications.

– Short job tenure, typically under 1-year.

– Better full-time benefits (health care, retirement savings, company shares).

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eCommerce Warehouse Needs Are Boosting Commercial Real Estate Investment

Buying Online Is Only Going to Grow in the Future.
Transportation concept. Isolated on white

Are your tugger carts operating on prime real estate? E-commerce has online retailers shopping for commercial space. Duke estimates over the next few years, another 339-million square feet of industrial space will be needed.

Low Space Availability Drives Up Prices, Spurs Development

In an assessment by Morningstar Credit Ratings, trends in the industrial real estate sector point to a strong demand for warehouse space as e-commerce and manufacturing explode. This has resulted in reduced space availability, encouraging developers to create more. For every billion in online sales, over 1-million-square-feet of warehouse space is needed.

Stock from the online retail giant Amazon, with its 70-fulfillment center’s nationwide, is seeing earnings power increase with every dollar of net e-commerce sales growth. Though growth in this sector has posed challenges to the retail sector, it’s been a boon for others, including industrial REITS

This drives demand for logistics landlords who can turn ‘flex’ space into an industrial real estate goldmine. Rental space in this sector is likewise seeing an increase in rental rates and demand as vacancies dry up and e-commerce platforms expand.

Can Anything Stop the E-Commerce Boom?

The biggest threats to the e-commerce industry, and subsequently industrial real estate, outside the obvious – a highly unlikely decline in online purchases, include the very real threat of a decline in manufacturing activity. Given continually escalating tariffs, an outright trade war isn’t entirely out of the realm of possibility.

Should the sector experience a downturn, however, the supply end of the industrial real estate spigot could be turned off relatively quickly, allowing for a quick return to market equilibrium.

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Tips for Improving Warehouse Picking Accuracy

Tips for Improving Warehouse Picking Accuracy
Tips for Improving Warehouse Picking Accuracy

Thanks to the Internet, today’s customers are savvier than ever. As a result, they have increasingly higher expectations for their buying experience. Top-of-the-line warehouse equipment helps improve productivity, but your employees are the key to greater efficiency.

Order picking is a time-consuming but vital part of warehouse operations. Experts offer the following tips to boost accuracy without sacrificing time.

Set Goals and Track Results

Employees can better focus their efforts when they know what’s expected. Set accuracy goals and track them faithfully so you can pinpoint and address problems before they grow out of hand.

Review the Process from Beginning to End

A problem at any stage of order picking creates a ripple effect that affects the entire process. Carefully review each step to identify any roadblocks.

Count, Recount and Count Again

Even the most effective order pickers make mistakes. As often as possible, count before and after picking, and have shippers and packers reconfirm counts. The time spent is more than offset by savings in returns, accurate inventory data and customer satisfaction.

Embrace Automation Wherever Possible

Automated warehouse solutions have become the norm rather than the exception. You may think you can’t afford to modernize your systems, but you’re even less able to afford losing customers to tech-friendly competitors.

Reduce Walking and Worker Fatigue

Walking adds time to order picking and causes workers to tire, resulting in a slower pace. Optimize product slotting and incorporate solutions such as carton flow racks to reduce travel time.

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Should You Relax Your Warehouse Staff Drug Testing Policies?

Scientists Research Enzymes to Eat Plastic
Should You Relax Your Warehouse Staff Drug Testing Policies?

For several decades, pre-employment drug testing has been standard procedure in a wide range of industries. It’s been especially important in supply chain and logistics, with its use of warehouse equipment that requires clear minds and steady hands to operate.

During the last few years, some companies have begun limiting drug tests or eliminating them altogether. Is it time for you to consider relaxing your drug testing policies?

New Perspectives on Drug Use

In the big picture, attitudes toward drugs have been changing throughout the country. As of 2018, marijuana is legal in nine states as well as Washington, DC, giving more than 20 percent of adults the freedom to smoke it.

What’s more relevant for the supply chain and logistics industry is the tight labor market that’s further constricted by drug testing. According to a survey conducted by the Federal Reserve last year, inability of applicants to pass a drug test was included as one of the major obstacles to finding qualified candidates.

Does Recreational Drug Use Matter?

This claim is backed up by the fact that the number of failed drug tests reached a historic level in 2017. Experts predict that totals will continue to rise with the spread of state-legalized marijuana.

Some companies are adopting the attitude that what employees do on their personal time is irrelevant. Relaxed drug testing policies also allow companies to hire the best candidate for the job instead of issuing blanket rejections based on recreational drug use.

Warehouse Equipment that Improves Workplace Safety

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Tips to Cool Down Your Overheated Warehouse in August

How to Get Cool in August
How to Get Cool in August

Some cultures have the traditional siesta to cope with the dog days of summer, but companies don’t have that luxury. How do you keep the heat from affecting your employees, warehouse equipment and inventory?

Use these helpful tips to keep your warehouse cool and you’ll have it made in the shade.

Monitor Warehouse Temperature

Cooling a warehouse is much different than cooling an office building.

– Ensure that the building is sufficiently insulated.

– Supplement air conditioning with ceiling or industrial fans if necessary.

– Shut off any machinery that’s not in use.

Use Appropriate Supplies

Thermal labels and other warehouse supplies can malfunction during times of extreme heat. Review the supplies used in your warehouse to determine where alternative products are required.

Maintain Proper Inventory Control

Avoid carrying excess inventory, which increases the chances of spoilage. Even if products are not heat-sensitive, too much stock can prevent optimum airflow within the warehouse.

Invest in Dehumidifiers

Moisture in the air makes it heavier, which raises the perceived heat levels. Dehumidifiers remove moisture and make air conditioning more efficient.

Keep Doors and Exits Closed

When doors and gates are constantly opening, it lets cold air out and hot air in. Consider installing curtains or strip doors on exits that are used frequently.

Prevent Heat Exhaustion

High temperatures can lead to negative effects ranging from low morale to heat stroke. Provide frequent breaks and plenty of water so workers can stay cool and hydrated, and educate employees on the symptoms of heat exhaustion.

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Improve Your Warehouse Picking Productivity

Warehouse truck works
Tips to Improve Picking Efficiency

As sales from online retailing continue to grow, optimizing warehouse productivity has become more crucial than ever. Our electric tugger carts let you allocate manpower more efficiently. What methods can you use to help order pickers boost their productivity?

Here are expert tips to streamline operations and maximize efforts of your order pickers.

Use a Team Approach

Your employees are on the front line. They know better than anyone what works and what needs to improve. Create a team that includes yourself along with the appropriate supervisors and one or two order pickers to review operations and discuss solutions.

Establish and Track Goals

Your employees can’t fulfill expectations if they don’t know what those expectations are. Set goals that are realistically ambitious and keep employees informed of their progress. Workers will also be able to see how their accomplishments contribute to the company’s success.

Remove Roadblocks

When confronted with obstacles, frustrated employees often develop workarounds that add time and effort. If you and your team uncover constraints to the order picking process, make it a priority to eliminate them.

Consolidate Fast-Moving Items

Do you have a system for slotting your fast-moving products? Setting up a “hot zone” for these products requires no financial investment and the layout can be adjusted as item velocities change, such as during the holiday season.

Implement Batch Picking

Discrete order picking can result in a lot of unnecessary walking. Analyze your orders to determine if they can be batched to reduce the number of passes a picker has to make.

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Tips for Proactive Accident Prevention in Your Warehouse

Tips for Proactive Warehouse Accident Prevention
Tips for Proactive Warehouse Accident Prevention

Our warehouse equipment is designed to optimize workplace safety, but there are still a number of risk factors that face your employees every day. Take a proactive approach and educate workers about situations that can lead to accidents and injuries.

Here’s a look at some of the more common workplace mishaps and how they can be prevented.

Slips, Trips and Falls

Most workplace accidents take the form of slips, trips or falls.

– Make sure that the warehouse aisles are free of obstructions.

– Promptly clean up spills of liquid or other loose materials.

– Instruct workers to constantly review their immediate area for any stationary or moving hazards.

– All elevated work areas should be protected by guardrails. Use safety harnesses whenever appropriate.

Fires

Fires can spread rapidly, so prevention is vital.

– Replace worn or damaged wires immediately.

– Handle all flammable materials with care.

– Maintain an adequate supply of fire extinguishers as mandated by regulations. Place them in easy-to-access locations.

– Ensure that all entrances and exits are clearly marked and kept free of obstacles.

Compression Accidents

Heavy objects such as machinery and loaded pallets can cause serious bodily harm.

– Employees should be made aware of areas where heavy objects are stored overhead.

– Stack all loads neatly to maintain balance. Avoid stacking items too high.

– Provide training for all warehouse equipment that includes moving parts.

– All employees on the work floor should keep a safe distance from forklifts, conveyor belts and other moving equipment.

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