Warehouse First Impressions

OK, so I can’t help myself.  When I walk through a warehouse or distribution facility it seems as if a check list pops into my mind and there are these nagging questions.  Is this facility and its employees a cost center or a profit center?

1. A cost center is a department within a business to which costs can be allocated.  The term includes departments which do not produce directly, but incur costs to the business,^[1] when the manager and employees of the cost center are not accountable for the profitability and investment decisions of the business, but they are responsible for some of its costs.  Wikipedia

2. A profit center is a part of a business which is expected to make an identifiable contribution to the organization’s profits.  Usually different profit centers are separated for accounting purposes so that the management can follow how much profit each center makes and compare their relative efficiency and profit.  Examples of typical profit centers are a store, a sales organization, and a consulting organization whose profitability can be measured.  Wikipedia

So, does the warehouse/Distribution facility add to (is the warehouse operation a showcase) or does it detract from potential sales or is it such a mess that a customer would be disinclined to place new orders?  Thereafter things, kind of, go like this:

As soon as I step into a warehouse/distribution facility three things hit me simultaneously:  Lighting, Aisle width and height, and Capacity (Current and Potential)

• Lighting
  • Florescent, SO2.
  • Dark and lonely spots.

Who wants to walk into a dark/dank cave or cavern, much less work in an atmosphere replete with cobwebs, dirty, grimy shelves and materials?

• Aisle Width/Height
  • Narrow or wide.

Do the aisles conform to industry standards so as to enhance rather than degrade the warehouse functionality?  By in large “narrow aisle” applications are not suitable for the average warehouse/distribution facility because it requires different forklifts (potentially man aboard, turret mast, and straddle) and lots of additional training.

• Capacity
  • Current density.
  • Growth/expansion potential.

Is there storage space for current materials or is the warehouse at capacity (at 80% a warehouse is considered at capacity)?

• Cleanliness

Maintaining a clean and orderly warehouse enhances employees’ sense of well-being, efficiency, productivity as well as minimizing errors, machine failures, and loss of inventory.  Periodic, at least at shift start and end, clean-up is an indicator of a well-run warehouse.  Not allowing the accumulation of strapping, wood shards, corrugated, and bits of packing tape on the floor is just good housekeeping and pays long term dividends.

• Sprinkler Systems

Sprinklers and fire equipment are normally mandated by fire marshals and insurance companies alike.

• Racking/Shelves
  • Safety Decking.
  • Corner Posts.
• Warehouse integrity/Security
  • Off shift security/accessibility.
  • Roof integrity.
  • Water on floor.
  • Overhead doors integrity.
  • Man doors integrity.
• OSHA/MSDS Book and Sheets
  • Fire Extinguishers all types.
  • HazMatl.
  • Batteries.
  • Chemicals.
  • Damaged cartons, top shelf packaging.
• Layout
  • Dispatching/pick control area.
  • ABC.
  • Ease of picking.
  • Staging areas.
• Stock Location Methodology
• Picking and Pre-Pack Methodology
• Excess
  • How much stock and how many locations.
• Obsolete
  • How much dirt/dust on shelves, boxes, and materials.
  • Stock rotation/shelf life.
    • Gasket material, rubber goods.
  • MRA (Reject) Area.
  • Receiving Area.
    • Work Station.

Normally the responsibility of Quality Assurance in these areas must be secured with the appropriate documentation under control.

• Shipping Pack/Packaging Area
  • Tape.
  • Binding.
  • Containers.
    • Corrugated, boxes, crates.

Like all other work areas it is expected that good housekeeping is maintained.

• Material Handling Equipment
  • Fork Lifts.
    • Counter balanced.
    • Straddled.
    • Hi reach.
    • Hi reach man aboard.
    • Wheel construction/condition.
  • Cherry Pickers.
  • Pallet Jacks.
  • Ladders.
  • Jay Bar.
  • Cables/Straps.
  • Conveyers.
  • Tote Boxes.
  • Stretch Wrap System.

Lots of money is involved in the acquisition and maintenance of material handling equipment not to mention the safety factors.

• Bathrooms
  • Clean.
  • Functioning.
  • Properly Stocked.

Bathroom maintenance and cleanliness is a reflection of management’s attitude toward employees.  There are no acceptable excuses for poor and unclean bathrooms!

These are the things that actively go through my mind when I enter these facilities.  They have served me well and hopefully these ideas will help you.  I hope that you are able to put them to use in the future.

Your path to business success.