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MARCH 2015
Plans to Improve
Warehouse Efficiencies
Sponsored by On behalf of
Zebra Technologies Research Brief
Plans to Improve Warehouse Efficiencies
distribution haven’t changed much over proceeding with subsequent resolutions “We are under
the last two decades, with companies still and improvements. great pressure
relying on their warehouses to serve as to reduce costs,
storage/staging and trucks for deliveries, Issues and Challenges in Warehouse and
an increasing number of shippers are Yard Operations improve efficiency
examining the gaps in their warehouse Managers are running their materials and accuracy, and
operations and finding ways to better handling operations under decisive maintain and improve
utilize space, technology, and optimization constraints. Within the distribution centers customer service.
themselves, issues like capacity, space,
tools to work smarter, better, and faster.
inventory management, maintaining
We need to improve
With no end in sight to the rise in customer costs, having proper equipment to handle productivity of small
expectations, the need for optimized, required tasks, and managing labor all parcel processing.
efficient distribution centers will only play a critical role in operational efficiency. We also have to
increase exponentially. This, in turn, will In fact, many of the same complications better manage space
exacerbate the need for solid inventory similarly affect yard operations. As a
management techniques, better supply
utilization as some
result, managers are increasingly finding
chain visibility, and a more focused themselves working around hurdles like
facilities are near
approach on exactly how products get controlling costs, space confinement, poor capacity.”
from Point A to Point B. As one retail communication and ineffectual shipment —Logistics Operations
continuous improvement manager from tracking, and unproductive scheduling. Manager; Wholesale; $1B+
the retail sector commented in a recent
study conducted for Zebra Technologies More specifically, the managers we
Corporation by Peerless Research Group surveyed say that suitable use of warehouse “Our main concerns are
(PRG) on behalf of Modern Materials space and efficient utilization of warehouse cost control, increasing
Handling, “We continually look at all assets are their most pressing issues. production, and our
processes within the DC to see where Improvements Being Made in Warehouse e-commerce volume.”
improvements need to happen.” and Yard Management Operations —Warehouse Management;
For the study, 258 materials handling In many warehouses, the materials Retail; $1B+
executives having management or handling function could use both
purchase decision responsibilities for improvement and optimization. Many of “We are undergoing
the managers we surveyed, for example,
their warehouse, distribution center, or a conversion from
yard operations offered insights into the proclaim that their inbound, outbound,
and inventory processes are less than an operation that
gaps in their warehouse operations as well
efficient. In fact, roughly three out of four solely does live load
as how they are assessing, targeting, and
to an operation that is
Issues considered important in managing warehouse operations primarily using drop
Optimizing warehouse space 1% trailers.”
91% 8% —Corporate Management;
Food & Beverage; $1B+
Optimizing asset utilization 2%
84% 14% “We lack the capability
to generate reports
Having visibility from supply chain partners that would show
65% 22% 13% carrier performance,
such as late-for-
Providing visibility to supply chain partners appointments or total
56% 23% 21% time spent from dock
to gate.”
Highly important Somewhat important Unimportant —Director, Distribution
and Logistics; Food &
Base: 257; Source: Peerless Research Group (PRG)
Beverage; $1B+
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of products in the
Most in need of improvement Greatest cost to company warehouse.”
Base: 193; Source: Peerless Research Group (PRG)
—Company Management;
Furnishings; <$50M
3 • zebra.com Plans to Improve Warehouse Efficiencies
Zebra Technologies Research Brief
Plans to Improve Warehouse Efficiencies
In particular, the tasks that are ripe four operations in 2014, will become more “We are looking at
for improvement include inventory of a focal point in 2015. Complying with Kaizen and continuous
management, receiving, picking, and mandates and labor management will also improvement process
staging. Correspondingly, and not grow in importance to warehousing and to determine how
surprisingly, many of these activities DC operations in the near future. we can better utilize
are also identified as being the greatest
drains on warehouse and DC expenses
In assessing the main points of focus space, equipment and
and resources. In addition, the most costly
among today’s warehouse managers, it’s personnel.”
clear that widespread implementations of
functions to operate include shipping, —Distribution Manager;
mobile devices (i.e., smartphones, tablets,
inventory management, receiving, and Agriculture;
and label printers) are seen as the keys to
picking. $250M - $500M
better handling process change, upgrading
Warehouse and Yard Priorities worker efficiencies, and improving
Warehouse, DC, and yard managers are productivity both in the warehouse and
focused on lowering operating costs and in the yard. In return for their efforts,
improving customer service – issues that organizations are gaining from lower
are likely to persist as main priorities over operational costs, improved customer
the next few years. Increasing supply chain service, and better end-to-end supply
“We’re improving
visibility, a top issue for about one out of chain visibility.
our use of barcode
scanners to help
Main points of focus among warehouse managers automate the
receiving and tracking
83%
76% 2014 2015
of inventory.”
74%
—Sr. Quality Manager;
64% Aerospace; $500M - $1B
59% 56%
40% 42%
34%
28%
11%
Unsure
18% Base: 150/190; Source: Peerless Research Group (PRG)
Solutions and Technologies for Improving resource (both asset and employee) “We’re upgrading and
Warehouse and Yard Operations management. With the right combination integrating our WMS
Today’s supply chain managers of technology, processes, and procedures, system with our SAP
increasingly see mobility as an enabler organizations will be well equipped to tackle
of their overall business goals and
system.”
the challenges being put in front of them
objectives. In addition to desktop PCs, today, plus any future hurdles that may Manager, Operational
the technologies used most commonly stand in the way of success. Excellence; Retail; $1B+
in materials handling environments are
barcode scanners, thermal printers, and
mobile solutions. Looking to the future, Conclusions
warehouse managers are particularly
interested in implementing mobile Trends and realities continuously challenge
technologies, barcode scanners, thermal warehouse operators, emanating the
printers, and PCs. pressures to operate efficiently and deliver
optimal service levels – investment in
Seeing mobility as a chief business enabler, robust warehouse management platforms
and in an effort to improve warehouse and related technologies is a must in 2015.
and yard efficiencies, organizations are Add omni-channel retailing strategies,
most likely to invest in WMS upgrades, more discerning customers, and the need
mobile solutions, label printers, process to replace aging equipment and platforms
improvement applications, and asset to the mix, and it’s clear that warehouse
management systems over the next one and DC managers really do have their
to two years. In fact, the largest increases work cut out for them. As they tackle the
in investments from 2014-2015 align with challenges discussed and highlighted in
the typical organization’s goal of lowering the Zebra Technologies Corporation study,
costs, improving processes, and improving one by one, shippers will be able to better