I am Thankful For . . .

As we approach the Thanksgiving and Christmas seasons, I think it is appropriate to take a few moments to reflect on the things we are thankful for.  I feel like I have many things to be Thankful for, despite some hurdles and adversities that have been thrown my way this past year.

My Father

Although my father passed away on October 4th this year, I have come to realize how fortunate I am to have had him as my father.  The initial loss was sorrowful and empty, but as I have had time to look back on the 49 years we were together I have been able to laugh, cry, reflect and be thankful.
My father gave me, my sister and brother, a great life with great opportunities.  My father was always a presence in our lives.  Coaching, cheering, supporting and giving - he taught me how to put others before self.  He never preached this or lectured about it, he simply lived it everyday of his life.  He also taught us the importance of commitment in his marriage with our Mother.  I'm sure my Mom and Dad had hard times and challenges, but they worked through any of those difficult times together and showed us the strength of a marriage over 57 years.  Thank you Dad, I will love you forever.

My Family

I am thankful for the loving family that I have, both immediate and extended.  Eileen, my wife, and my children are blessings to me.  

Eileen and I are best friends.  We support each other, listen to each other, and balance each other.  I thank God that we met 28 some years ago and have been inseperable since.

Our kids are a source of pride, joy, happiness, frustration, worry and Love.  They are our number one responsibility and it is phenomenal to watch them grow, mature and become young adults.

Our extended family - mine and Eileen's, are a major part of our lives.  We enjoy each other, socialize with each other and support each other.  With both our families, we have more than a family tie, we have true friends.

My Friends

God has blessed me with friends who are geniune and true.  I have many friends who I can, and have, turned to for support, advice and good times.  I appreciate them and hope that I provide the same level of commitment to them as they show to me.

My Customers

Starting a new business provided a full spectrum of emotions.  I am thankful for the customers that have put their trust in me to provide the products and services that they sought.  I trust I have conducted my business in a professional, caring, sincere manner and hope to have the opportunity to continue to work with my customers in the years to come.

Stores that Don't Open On Thanksgiving Day

And to close with a bit of brevity, I am Thankful for Stores that do not do business on Thanksgiving Day.  Congratulations to them for letting their employess spend time with their families and friends and to reflect on their blessings for the day.  Perhaps the person(s) who made the decision to open their doors on a day meant to celebrate Family, Friends and God will re-access their priorities in the future and put balance back into the lives of the families that work for them.  The shoppers will still be there on Friday morning!

Happy Thanksgiving to All and God Bless You!

The Expense of Not Hiring a Professional

WHEN DO YOU CALL IN A PROFESSIONAL?

I read a Twitter post the other day that stated, "If you think a Professional is expensive, try hiring an Amateur".   I had to ponder for a moment, then it hit me.  Companies and people provide services because their customers need them.  Then I began to reminisce the situations and clients I've worked with in the past that started down a path, discovered that they were sinking quickly, then asked for the Life Preserver!  Unfortunately, there are way too many stories like that to recall.

Many clients that I've worked with don't know what they don't know.  They begin to tackle a project or situation with good intentions, but soon discover that they don't have the Time, Resources, or Specialized Knowledge to efficiently come to a resolution.  Sometimes they have traveled far down a path, others they have just begun their journey and realize they don't like the road they are on.  In either case, they come to a decision point about either how to proceed or if it makes sense to end the journey at that point.

TIME

Time can be the biggest constraint on a companies pursuit of a project or solution to a problem.  Most of our clients are focused on the Selling, Manufacturing and Distribution of their products, they don't have the time available to address their "Special Projects".  If they do decide to tackle the project internally, they often find that their "normal responsibilities" start to suffer.  I have seen this situation escalate quickly to the point that trying to solve the problem or execute a project exaggerates the problem and creates a vortex of exploding issues.  It is not uncommon for a project, when being handled internally, to take 3 - 5 times or more the expected investment in time.

RESOURCES

Just like time, many companies don't have the internal resources to efficiently take on a project that is outside of their normal scope of business.  These reources can be in the form of people, hardware, software or tools and equipment.  Many internal engineering staffs have been cut or reduced over the years.  With the people went the tools to do the jobs.  In addition, the resouce of people are often asked to take on a project or try to solve a problem that they aren't necessarily versed in the potential solutions.  Again, they are focused on their day-to-day business.  It takes time for a person to educate himself to the point that they can be resouceful in project execution or problem resolution.  The issue of hardware, software and tools becomes a resource that may require additional investment - just to develop a solution!  These resouces should be evaluated througholy before jumping into a project feet-first.

SPECIALIZED KNOWLEDGE

This is a tough one.  When faced with a problem or 

a project, most people will accept and take on the challenge rather than taking a long, hard look at what options are available to develop a solution.  It is an often used quote, but " The definition of Insanity - doing the same thing over and over again and expecting different results".  When a situation gets to the point of attention, it usually isn't the first pass at recognizing there is an issue.  The level of thinking that brought us to the this point cannot be used to take us in a different direction.  This often comes in being too close to the situation that you can't necessarily see the solutions that may be right before you.  Bringing in an outside resource provides a pair of fresh, unbiased eyes to a situaiton.  Couple that with the outside resource having specialized knowledge, often brings a project or situaiton to a quick, sound resolution.  

When faced with a project, problem or challenge, think through the options available to resolve that situation.  If it appears that it is too big, outside the "expertise" of the organization, or simply too time consuming to address, consider hiring outside resources.  These resources can provide Expertise, be an Advisor, be a Resource to the organization and a Single Point of Contact in the resolution of the challenge or execution of the project!

IS A GOODS-TO-PERSON STRATEGY RIGHT FOR YOUR OPERATION?

Order Picker Travel Time

Did you know that in a non-mechanized, non-automated operation, an Order Picker spends up to 90% of his time traveling from location to location and task to task?  Do you realize that if you reduce that travel time by 10%, you double his picking time from 10% to 20% of his time?
This travel time could be walking from pick location to pick location or from a storage zone to a shipping area.  It could also be time spent traveling vertically on an Order Selector truck, going from the floor to upper pick levels.
In the worst cases, it is traveling to find a ladder, traveling back to a pick location with the ladder and traveling vertically up and down the ladder to retrieve the part!  Have you ever seen this scene played out?!  If you could bring the goods to the order picker, how much productivity would that generate in your distribution center?  This is the concept of Goods-To-Person technologies.

Carousels:     

One of the oldest technologies of Goods-To-
Person are carousels, both Horizontal and Vertical.  Carousels can be very effective in increasing both Order Picker Productivity and Cube Use in a facility.  The major factor here is that you need to be sure there is enough activity or volume to continuously bring product to the person without the person having to wait for the machine.  Horizontal Carousels will generate higher picker productivity while Vertical Carousels or Vertical Lift Modules will better utilize building cube or ceiling height.  In either case, it is important to make sure that re-stocking of the machines does not come at the expense of the picking productivity you can gain from the machine!

Put Systems:

Put Systems, or Put Walls are a way to get product efficiently consolidated for an order.  You may see a Put System or Put Walls in a facility that is processing many orders with very few line items on the order.  This is common in e-commerce fulfillment.  The premise of the Put System is that you will have a relatively small area where you can stage out-bound order containers (boxes) and have the items for that order brought to
you.  A batch of orders is picked in the pick zones and brought to the Put Area on conveyor or some other means of transport.  The Order Consolidator then sorts the items into the appropriate shipping contain for the order.  The consolidation is often directed by a Put-To-Light or Put-By-Voice system.   Once the order is complete, the container is sealed for shipment and taken to the shipping area by some means of transportation.
Put Systems can also be very effective when filling stock orders for many locations, all receiving the same items.  The outbound orders or containers are staged and the items are brought to the Put area in bulk to be sorted into the shipping containers.  Much like a mini cross-dock operation.

Robots:

Robots, such as OTTO Robotics or the Swisslog AutoStore, provide highly automated Goods-To-Person systems and optimize the storage cube of a facility.  In these systems, the robot mechanism brings the storage medium directly to the order packer.  Items are retrieved from the robot and packed for shipment.   All of the travel is done by the machines and the storage locations are dynamic to make the most efficient use of space and time.  These systems require more capital investment than the others, but the high-volume, high-velocity capability make the systems very efficient. 

Determine your Objectives - Select Your Solution:

If your operation is looking to reduce labor, increase throughput and increase Operating Net Profit, a Goods-To-Person strategy may be the right solution.  Determine your goals and objectives, your business strategy and your budget threshold.  Then, contact ELITE Supply Chain Solutions to help you determine the right solution for your business.

GOODS-TO-PERSON Order Fulfillment

IS A GOODS-TO-PERSON STRATEGY RIGHT FOR YOUR OPERATION?

Order Picker Travel Time

Did you know that in a non-mechanized, non-automated operation, an Order Picker spends 90% of his time traveling from location to location and task to task?  Do you realize that if you reduce that travel time by 10%, you double his picking time from 10% to 20% of his time?
This travel time could be walking from pick location to pick location or from a storage zone to a shipping area.  It could also be time spent traveling vertically on an Order Selector truck, going from the floor to upper pick levels.
In the worst cases, it is traveling to find a ladder, traveling back to a pick location with the ladder and traveling vertically up and down the ladder to retrieve the part!  Have you ever seen this scene played out?!  If you could bring the goods to the order picker, how much productivity would that generate in your distribution center?  This is the concept of Goods-To-Person technologies.

Carousels:     

One of the oldest technologies of Goods-To-Person are carousels, both Horizontal and Vertical.  Carousels can be very effective in increasing both Order Picker Productivity and Cube Use in a facility.  The major factor here is that you need to be sure there is enough activity or volume to continuously bring product to the person without the person having to wait for the machine.  Horizontal Carousels will generate higher picker productivity while vertical carousels will better utilize building cube or ceiling height.  In either case, it is important to make sure that re-stocking of the machines does not come at the expense of the picking productivity you can gain from the machine!

Put Systems:

Put Systems, or Put Walls are a way to get product efficiently consolidated for an order.  You may see a Put System or Put Walls in a facility that is processing many orders with very few line items on the order.  This is common in e-commerce fulfillment.  The premise of the Put System is that you will have a relatively small area where you can stage out-bound order containers (boxes) and have the items for that order brought to
you.  A batch of orders is picked in the pick zones and brought to the Put Area on conveyor or some other means of transport.  The Order Consolidator then sorts the items into the appropriate shipping contain for the order.  The consolidation is often directed by a Put-To-Light or Put-By-Voice system.   Once the order is complete, the container is sealed for shipment and taken to the shipping area by some means of transportation.
Put Systems can also be very effective when filling stock orders for many locations, all receiving the same items.  The outbound orders or containers are staged and the items are brought to the Put area in bulk to be sorted into the shipping containers.  Much like a mini cross-dock operation.

Robots:

P.A.C.E. Is the Key to Successful Distribution Center Expansion

Planning and Executing a Successful Distribution Center Expansion

Executing an expansion or modernization of a Distribution Center is not and easy task to execute.  The proposal drawings and sales presentation make the end result look appealing, but the transformation from existing conditions to the end product is a very detailed, well planned and coordinated journey.  ELITE Supply Chain Solutions likes to P.A.C.E. this process - Planning - Attitude - Cooperation - Execution.

Be cautious of the firm that tells you "No Problem", "You won't even know we're here", "We will stay out of your way" - or any feel-good statement that makes your gut turn over.  The fact is, an expansion or modernization is a very difficult undertaking when you are trying to operate your business and execute a project transparently to your customers.  As a client of mine most accurately described the process, "It's like remodeling the only bathroom in your house and you have a wife and three daughters living with you!"

Planning - As Steven Covey tells us, "start with the end in mind".  Know what the end product needs to look like and design backwards to the existing conditions.  When developing your design, consideration needs to be given to the existing operation and how you are going to impact the operation.  Every action has an equal and opposite reaction.  Sometimes the end result is a by-product of how to get there from your starting point.  Concessions may need to be made in the final design, or you may need to invest in temporary work areas or equipment.  Don't under estimate the impact of shutting down an operation's ability to ship orders.  The cost of a shut-down may be far more painful than an investment in short-term work aids.

Attitude - If you're going to fight with your client, fight early before the project execution begins.  Make sure the client knows what to expect and set the tone and expectation of the project execution phase.  This is no time to be wimpy!  Let the client know that the process is not going to be without its angry moments, frustration, anxiety and long work hours.  But also let the client know that it is a short period of time in the grand scheme and when the project is over, the end results will be more than worth the pain to get there.  NO PAIN NO GAIN.

Coordination - Coordination between you and your client is essential.  Plan around your customer's business - peak times, physical inventory, end of month rushes, purchasing cycles, etc.  Your client most likely won't associate these events with this project.  Be pro-active and lay these issues out on the table.  As well, agreement needs to be made on work hours, receiving hours, staging space, after-hours and weekend work.  If there are critical cut-over phases in your project, go over those phases thoroughly so that your customer knows what to expect and what is expected of him.  Be sure the "execution plan" has mutual agreement between you and your client.

Execution - Once the plan is developed, the attitudes are set and you and your client are on the same page as to how the project is going to work, it's time to execute.  Monitor the progress closely and make adjustments early and as needed.  Consistent project update meetings are a must and reliable, truthful information must be shared on the progress of the plan.  If adjustments are needed, go back to step one and Plan, Set the Attitude and Coordinate with the client so that everyone is on the same page.  Follow the plan, but don't be embarrassed to make adjustments.  Many surprised linger in corners that you couldn't see.  Recognize and respond to surprises, don't ignore them.  Execute the plan, but don't be too proud to change the plan when needed.

Set the P.A.C.E. of the project, communicate often and effectively with your client and crews, and your project will be successful and the pain of the process will be forgotten and the results exhualted!

TRUST Is the Key to Successful Projects

As I just finished wrapping up a project today, I realize that the key to executing a successful project is TRUST.   Trust between you and your customer, trust between you and your vendor partners and trust between your vendor partners and your customer.

This particular project was an expansion and modernization of an existing distribution center.  The project included a new expanded mezzanine (or platform in this city because a mezzanine is a physical structure of the building!), relocating shelving and inventory onto the new platform.  Installing new Pallet Rack and Pallet Flow Rack and updating a 20 year old conveyor system.  All while the customer continued to ship orders and operate his business.

We were able to establish a high level of trust early in the project and between all parties involved.  The customer had an implementation schedule that was very aggressive.  We shared from the outset the components of the schedule that were realistic, those that were amusing but not do-able and those that none of the parties could control - the permitting process from the City.  Once we came to terms with what the actual schedule would be, the expectations were set based on mutual agreement.  Now we all trusted each other that the schedule could and would be met.

We also addressed the phases of the project that would be very difficult and discussed how we would work through those phases.  I used a phrase that I stole from a customer many years ago; "remodeling a working distribution center is like remodeling a bathroom in a one-bathroom house - with a wife and four daughters living in the house!"  There were clearly difficult days and at times weeks, but again, we set a realistic expectation based on mutual agreement and trusted that all parties would work through the difficult phases.

So today was the time for smiles, handshakes, pats on the back and other celebrations.  Although the project DID NOT run flawlessly, the trust was in place that all parties would work through the challenges and bring a successful project to fruition.  And that we did - by trusting that each member of the project would execute his piece and work with the others to a common goal.

visit www.elitescs.net to learn more about our project execution strategy and the vendor partners we work with.

Do you have EARS when you are with your clients?



I recently attended MHEDA's (www.mheda.org) 58th Annual Convention & Exhibitor's Showcase.  Among the many excellent speakers, presenters, workshops and exhibitors, one of the messages that has been going through my head over and over was delivered by Warren Greshes, President of Speaking Success.  Warren had a tough draw for his "tee time", going up against a perennial MHEDA favorite, Alan Beaulieu.  Those who missed Warren's presentation may want to go to MHEDA University to view the presentation.

The title of Warren's keynote was "Make My Life Easier: What the 21st Century Client Really Wants".  The session was in a work-shop meeting room, so Warren's voice "boomed" and echoed off of the walls.  That was a good thing right after lunch!  As Warren delivered his message, he came to the point where he suggested that success will come if you have EARS for your client. Be an: Expert, Advisor, Resource and Single Point of Contact.  His examples during his presentation were on-target and made sense, but the message didn't start to sink in until I was driving to a sales call the day after I got home from the conference.  During my drive to the appointment, I started thinking, "what can make me stand out from all of the other people this prospect may be talking to?"  Then I thought of "EARS"!  

I started to think about what I may know about this prospects' business and world and how I could frame that into a position of Expertise.  What do I know about this industry and business that may cast me in the light of an Expert?  Can I use that during this call?  In fact, there were things I was able to use that portrayed me, if not as an expert, certainly as someone who has helped solve similar problems to what this prospect is experiencing.

As we were walking through his facility, I had the opportunity to be an Advisor.  I was able to point out some things, both good and not-so-good, that the prospect is currently doing.  I was careful not to over-criticize and do dangle some potential solutions, but not give away the "secret recipe".

As this relationship develops and grows stronger, I suspect that I will have the opportunity to be a Resource to this client and, if I am diligent in my work, become a Single Point of Contact for him.  

But the most important thing I came to realize is that in order to be EARS to your clients, you need to use your Ears!  Asking questions and then shutting up and listening, the prospect walked me right into the positions of being able to be perceived  as and Expert and Advisor.  Since then, I have been practicing and taking opportunities to be EARS on all of my calls, and the results, although early, have been fantastic!

WHEN LESS IS MORE: 

Does Mechanization or Automation always fit?

During a recent sales call, a customer asked me a question; "Is automation always the right solution to be more efficient?"  What a great question.  I actually had to pause a minute and think about the answer.  Imagine that, a salesman being quiet for a moment!

After giving it some thought, I shared with my customer that yes, there are times when automation, or even mechanization, do not make an operation more efficient and may even hinder the operation.  I can think of one instance where we recommended that a customer remove a conveyor line that he had in his warehouse.  The volume of business that was being done and lack of flexibility that the conveyor imposed actually was not helping this operation.

The lesson I learned from this question was that there is a "band width" of application for all tools and technology.  If the application doesn't fit into the "band width" for that business, look for the solution that does fit.  As professionals, we are relied on to provide solutions that help our clients.  Being able to assess a business challenge and offer pragmatic, realistic solutions to those challenges separates the pro from the amateur.

As I reflect back on that call, it makes sense that there are very successful equipment manufacturers who make products that would be considered "low tech".  These companies are successful because there is an application and need for their solutions.  The very good ones even develop "low tech" custom solutions that can be very profitable for the end user by solving unique challenges with creative solutions.

Contact ELITE Supply Chain Solutions to help with your Material Handling Challenges

440.268.8555

www.elitescs.net

SMALL PARTS STORAGE - Where do you put all those parts?

Today's consumer wants just the right size, color and style for the right season!  This is not a new phenomenon but an on-going challenge.   How do you store all those parts and pick, pack and ship them efficiently?  What do you do when your procurement dictates large quantities, but your demand doesn't match?  How do you make use of the height in your building without compromising safety or efficiency?  All of these questions point to answers that may be very different from your large aisle, pallet rack storage system that was put in when the business first started up.

The science of Material Storage tells us how much cube we have of an item and what type of storage equipment to put the item in.  The ART of Material Storage allows us to design a storage and retrieval system that supports our customer demand and contributes operating savings to the bottom line.  It is fairly simple to look at HOW MUCH of a product you need to store and find a storage system that will support that volume.  The real trick comes in designing a system that optimizes every aspect of receiving, storing, picking, packing and shipping that item - then multiply that by the number of items your business supports!

Gains in efficiency of receiving and put-away may compromise the labor required to pick, pack and ship an item.  When does the company make a profit - when inventory comes in the door or when orders ship out?  More focus should be placed on how to efficiently move orders out the door than how to store the sheer cube of an item.  Although we don't necessarily want to touch an item more than we have to, the cost of a movement of bulk to a pick location may be a fraction of the efficiency gained in picking the item from a forward pick location.

ELITE Supply Chain Solutions helps clients determine the best way to store and move inventory through their supply chain.  We develop the solutions to support your business and implement our designs to provide you with an efficient, profitable supply chain operation.  Call ELITE Supply Chain Solutions to help you solve your Supply Chain challenges!  440-268-8555  www.elitescs.net

ADDING STAFF BUT HAVE NO WHERE TO PUT THEM?  Modular Office Systems and Pre-Fabricated Buildings may be the answer.  

Modular Office Systems offer a lower-cost alternative to stud-and-drywall construction and can be installed and operating with little disruption to your operations.  In addition, Modular Office Systems come with all of the utilities and amenities ready to go in a "plug and play" concept. 

These office systems can be single-floor, multi-level and even divided into an office system.  Typical uses are found in shipping and receiving departments, production cells, in-plant processing areas and even break-room, locker room and rest room facilities.  Modular Offices can be configured for Clean Rooms or Environmental Rooms.  Systems can be pre-engineered or custom designed to meet your exact specifications to house people, equipment or simply control an environment.

Visit www.starrco.com for ideas on how to construct your Modular Office System.  Contact ELITE Supply Chain Solutions today www.elitescs.net to start planning for your facility.

RUNNING OUT OF SPACE TO STORE INVENTORY?  HOW ABOUT A MEZZANINE

Today's culture of customization has contributed to the explosion of part numbers and SKU's in a distribution center.  Red, Green and Blue are now Brick, Scarlet, Rose, Forrest, Sea, Hunter, Sky, Royal and Dodger.  So how do you deal with the proliferation of part numbers when your operating space hasn't gotten any bigger?  Look up.

Do you have space over your existing storage equipment that can be used?  Do you have people on ladders or trucks going up to get to parts - in very large aisles?  Are pallets filled with mixed part numbers creating an "inventory stew" on the pallet?  The answer may be to use your overhead space the way you would use your floor space.

Mezzanines provide a fairly simple solution to SKU proliferation.  You can create additional operating square footage in the same footprint that you currently occupy.  The newly created space can be used for many applications:

• Shelving Storage
• Carousels
• Flow-Rack Pick Modules
• Packing Stations
• Office and/or Meeting Space
• Bulk Storage of Inventory
• Conveying or Sorting Equipment
• Put Stations

Manufacturers of mezzanines, such as Steele Solutions in Franklin, Wisconsin (www.steelesolutions.com), can provide a custom design to fit your needs, meet local and State building codes, and provide a visually pleasing structure to blend in with the look of your current facility.  Mezzanines and Platforms can add up to 33% or more of additional operating space without having to expand your existing building!