The challenge of warehousing

By Brian Hudock General Manager-Warehousing Tompkins Associates Raleigh, N.C.

As a result, we cannot customer servlce r cannot be happy wi or distribution the order is fi

In fact, only satisfying delight the cus- ructlon ls expenslve. o Surges of activity ve with tomer servrce, that most often it physically in our warehouses

It is here that It is here:that we pick the right mat'erial,; pack ,it,to prevent damage, an@ shiprit to,the right address in a ti manner.

Customer serfuice is the true value of warehousingf People will pay for availabilitv. Remember Tickle-meElmo dolli o.jfor us old-timers, the oil embargo?i The warehouse is a strategic cus

Many i gr'service weapon. this reguires numerstuffed to the gills On the contrary. the larger, centralized ous w with inve trend is warehouses/that reduce overall inventory on-harft while actually improving service, arld more important, reducing the total cdst of distribution. jlnforma-l , and product is shipped directly t$ the point-of-use.

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More and more the customer, we are (or tomer by exceeding tFeir expectations. should be) looking at sto In evaluating to rmprove cus- dling methods'that usespace more efliciently. This is especially true when consolidating warehouses. o Few warehouses have ventured beyond basic material handling and storage methods. This continuing trend is not necessarily the result of a logical decision analysis, but is largely a result ofresistance to change. o The pressure to computerize the warehouse is great (now mandatory) and key to improving response times, but the level of understanding of need, benefit and specific requirements is low. Management must only pursue computerization after the objectives and expectations of the computer are clearly defined and understood. (Never automate a broken warehouse.) o Every warehouse is continually affected by competing pressures. Pressures to achieve Just-in-Time inventories are exerted at the same time product variety is increasing. Consequently, some warehouses are experiencing increasing inventory, while others have shrinking inventory. The one common denominator is that they all are experiencing change.

Considering the above conclusions. it is clear that customer service success can only be achieved by putting a plan in place that is based on a clear, consistent vision of where the ware-

Unfortunatelfr realize the importance of w with respect to product cost and customer service. Several years ago, Tompkins Associates conducted a survey of warehouse managers and the results were somewhat disturbing. It is frightening today to learn that little has changed. The survey indicated:

. Warehousing is still a laborintensive industry. Tremendous opportunity exists to improve warehouse productivity and responsiveness by actively pursuing formal employee training and education programs.

Without this vision

Iting plan, warehouse ft+rflhtg*firefighting operations anarchy. Costs will sk customer service will suffer.

Two fundamental types of planning must occur in the warehouse: contingency planning and strategic planning. Contingency planning guards against a predictable future change in requirements having unpredictable timing. It is needed for: o Equipment downtime o Material supply disruption o Emersencies t shifts

Oood contingency cantly reduces the need for crisis management. On the.other hand, strategi planning prepares for a predictab future change in requirements havi

, Space deficioncies i o Labor deficiencies o Equipment defi ciencies o Growth (decline)

. Customer configuration e Product line changes r Inventory reductions o Material control problems o Order profile changes r have a Sue appreciation strateglc planning. A strategic' has several qualities. First. the plan and not in the back of warehouse manager's rnind. A I set of documents should be should be actioqrorie fuhrre over,a specifi zon, Typi€ally, a fi,

The plan and time- ld look to the planning horiyear horizon is glthough. two to years may y projected.

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