1. Utilize the Space You Own:
MH World: At least once a week, I am advising clients that have enough space within their current warehouse to add more pallet positions, sometimes as many as double. This saves them on moving expenses, high lease rates, permitting, and a laundry list of expenses that come along with changing warehouses. We can arrange current rack, narrow the aisles, stack taller, or all of the above.
Real World: Living in a place with comparatively high cost of living, your buck doesn't go too far in the housing market. There are probably times you have felt you and your family have out grown your space. Look around, be sure all of your furniture is usable. Coffee tables that double as storage, beds that have drawers and shelves in them, you don't necessarily need that antique end of the bed lounge, and isn't there a better place to store china than those gigantic china cabinets? We had to reassess our own living quarters once or twice, and the room we found was remarkable.
2. Keeping it Lean
MH World: In a lean warehouse, the company is not trying to hold as much inventory as possible. This is a more efficient way of running a warehouse. It is easier to find goods, store them, and replenish when necessary. Not to mention, less product requires less space, which we all know is more cost effective.
Real World: Buying in bulk seems like a good idea to most people because of the cost savings. But for a smaller family, this can be the complete opposite. Things such as toilet paper, tooth paste and vitamins make sense, since they aren't perishable and you won't use more just because you have restock. However, keep your fridges and pantries stocked with items for just this week. It's been my experience that I eat healthier, more at home, save money, and have much less food waste keeping my food supply "lean." This can also apply to your closet. Capsule wardrobes are the new thing. You have about 15 pieces of clothing that you cycle throughout the season. When the next season comes, grab new pieces and wear the hell out of them. You will get a much better use of your clothes, lower your prep time and only need to go shopping 4 times a year!
3. You Get What you Pay For
MH World: I like to warn my clients on the first sales call that I will most likely not be the cheapest bid. And there is a reason for that. I am going to do my homework, get you a superior product at the biggest discount possible, and this product will out last most with a smaller price tag. With cheaper rack and forklifts hitting our industry, clients are naturally going to want to buy a cheaper product. You get what you pay for. The cost of ownership after 10 years due to service, replacing parts, down time and damage can far exceed that of the original price of better equipment and material.
Real World: This is one I struggle with. I love bargain shopping and getting the best deal. However, this theory needs to be applied to big investments (Cars) as well as smaller(vacuums), but still important, purchases. Bargain hunting and buying the cheapest item isn't always a bad thing, but know where to spend your money for the products you need to last.
4. Reduce Your Time on the Inbound Line
MH World: You can reduce time on inbound line by setting an expectation with your vendors. Have them understands that damaged goods/products/boxes are not acceptable. Between breaking down pallets, sending back damaged goods, and repackaging, time and energy is wasted. Which is just money wasted. Communicate that your time and resources will not be spent with damaged or improperly packaged goods up front to avoid these issues. The less time material can be spent inbound, the more efficient your warehouse will be.
Real World: I like to use this one in my personal relationships. My husband and I thrive off expectations and avoiding issues on the "inbound line." "Have a great day, I can see you home before 6, correct?" "I'm looking forward to date night, are we taking an Uber or are you driving?" "Can't wait to have you home, can I expect the dog to be taken out or do I need to take him?" It's Relationships 101, really. Clear communication and clear expectations reduces down time and you enjoy each other much more.
5. Use a Consultant
MH World: While doing a big project such as conveyor, racking, new WMS and pick strategy, unless you are proficient in the trade, get a consultant that you trust. They are (or should be) skilled in what they do, they have a fresh eye on your operation, and can spot bad bids and products that will cost you in the long run. I have worked with many and acted as the consultant in plenty of deals, each time leaving a happy client.
Real World: Again, unless the trade IS your profession, leave it to the professionals. Searching for a house should include an agent. New flooring is something you can do on your own, but I wouldn't suggest it. Leave electricity up to the electricians. Reasons going along with the "You get what you pay for" segment. If it isn't your expertise, don't do it.
There you have it, how the material handling world translates to the real world, through my experiences. Utilizing your space, keeping your inventory lean, you get what you pay for, reducing the time on the inbound line and using a consultant will all help with time savings, money managements and efficiencies in not only your warehouse, but in your every day life.
