Maximizing distribution efficiency

[Source: www.sterlingtrucks.com]

• "Remember the basics: Before you try to more advanced techniques and technologies, make sure you have the basic stuff right, such as warehouse layout, product flow, building the right culture among staff, etc.
  
• Automate: With a wide array of automation choices logistics managers need to constantly keep in touch and abreast of technologies and their potential. “If you're not using a type of automation, you should have a good understanding of the technology and a compelling explanation for why you aren't using it.”
  
• Analyze: Err on the side of too many metrics, not too few, using the information to help you make better decisions. “How much does it cost to touch a product? How do individual workers stack up to each other for productivity? What percentage of your shipments does your biggest customer represent? What percentage of expenses does freight represent? How closely does your organization follow the Pareto Rule (20% of the SKU's represent 80% of the velocity)? How long has it been since you had orders for your least active SKUs? What is your carrying cost?”
  
• Remember your employees: Don’t lose track of your people while worrying about technology, strategy and results. “For the most part they want to do well, and will respond positively to training, feedback and encouragement.” Simple incentives can work wonders.
  
• Benchmark: All the data in the world about your own operation isn’t worth much if you don’t know how that compares to others and what is possible. A variety of approaches to benchmarking exist.
  
• Seek outside opinions: Too many logistics managers and executives are reluctant to get opinions and counsel from others outside their operations, often believing their processes are somehow too unique for others to offer much help. Rubbish. “The most effective distribution executives are not necessarily one person with an individual wealth of knowledge and experience, but are almost always great facilitators of multiple sources of knowledge who can "borrow" and apply the best ideas without feeling intimidated or threatened. Accept the fact that today's distribution centers require so much specialized knowledge that no one person will ever be the definitive expert on every process that goes on within the four walls.”
  
• Communicate: In addition to communicating with your team, ensure you communicate consistently and effectively with your peers in sales, finance and other areas within the company and your customers. It pays off in many ways, especially when the inevitable trouble strikes."