Distribution Centers and Warehousing Centers Regressed in 2017
You’d think with the technology available to the distribution and warehousing technology, that services would be running smoother than ever.
But that’s not the case for 2017.
According to the 2017 MPI Distribution and Logistics study, a lot of distribution and warehousing centers are traveling back in time—about 10 years back in time.
According to the report it’s all about strategies being implemented by management.
Distribution Centers, Manufacturers and Retailers Lose Millions
According to the study, these antiquated strategies being employed are costing the companies millions every year. Customer service is failing, profits are dropping and strategies get more labored and convoluted than ever.
Why Distribution Centers and Warehouses are Failing
Distribution and warehouses are missing a simple piece to the puzzle: continuous improvement. You know how we all say, ‘we’re a work in progress”? The same approach should be taken with your distribution workflow and warehouses. Nothing is perfect.
That’s why processes and policies should be in place to continually review and improve processes. Commonly called continuous-improvement programs. Self-explanatory, right?
It doesn’t have to be complex—but it must include awareness and conscientious review to identify areas of weakness and gaps that need improvement.
Less than 55% of facilities have a continuous-improvement program in place.
Lean thinking and in-depth employee training is at an all-time low, as well—at less than 50% of the recommended 40 hours of training.
The pattern here is simple: basic business. It’s not a lack of funding, software, technology or the like. It’s a lack of action. A lack of involvement. Distribution centers and warehouses need proactive policies and programs to stay on top of workflows and processes. With this approach—you can quickly identify issues and cure them before your reputation takes a hit.
You don’t need to spend a bunch of money making changes, but you do have to spend time.
Implement Simple Continuous Improvement Strategies
At Super Health Center we know the pitfalls distributors, manufacturers, warehouses and brands face. Let us use our knowledge to help you avoid reputation damage. Call us or reach out for more information on how we can help you with your simple business plans.