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Do you feel that you are mostly busy with firefighting and no time is left for structural improvement? Highly Competitive Warehouse Management helps you to break with this cycle and goes forward. Within one year you create a competitive distribution center and within three years and it is best-in-class.
In warehouses and distribution centers lot of gains are possible, although practice often is unruly: IT projects exceed budgets and provide little improvement, supply chain partnerships do not work out and managers lack time for process improvement due to the daily hustle.
We have developed a three-step improvement methodology that avoids these pitfalls. The method is called Highly Competitive Warehouse Management and has as its central question how the warehouse can contribute to a structural improvement of the company results. The three steps are:
1. Create awareness 2. Set goals 3. Create continuous growth
1. Create Awareness
These pitfalls often arise when managers want to introduce innovations for which the warehouse is not ready yet. Hence, we first look at the maturity of the warehouse before we start improvement actions. The warehouse maturity scan immediately identifies the maturity level of your warehouse and the actions which belong to this maturity phase.
2.Set Goals
Warehouses often play a minor role within companies. An warehouse that is an equal to other departments can greatly contribute to the competitiveness of a company. This requires that logistics managers look beyond the warehouse walls. Which opportunities do you see? What do you want to achieve? Set revolutionary goals for the next three years and get the support of senior management.
3. Deliberately Growth
Each improvement project is a change project. A major risk of improvement projects is that the operation does not adopt the change. When implementing a new IT system in the warehouse, one cannot see it separate from changes in processes, in the attitude of the people in the workplace and in the role of the warehouse within the enterprise. So look at the big picture and strive for gradual evolutionary growth.
Evolutionary Growth
Highly Competitive Warehouse Management is a unique approach that helps logistics managers to improve the performance of the warehouse in a successful manner. The approach aims at evolutionary growth that gradually increase the maturity of the warehouse. The underlying principle is that certain improvement actions only take effect when the warehouse has the right maturity. Highly Competitive Warehouse Management considers four stages of maturity.
Reactive
The Reactive phase is the phase where managers are primarily engaged in firefighting and there is no time for structural improvement. This phase is considered as bad practice. Yet research shows that more than half of all warehouses are still in this phase.
Effective
At the Effective phase we will create transparency in the operation. We use the transparency to streamline processes and to manage the operation in a better way. In short, the warehouse is managed on the basis of facts rather than gut feelings and personal preferences! In addition, this stage lays the foundation for improvements in later stages. Without a proper organization of the internal processes, major software implementations and supply chain projects often are doomed to failure.
Responsive
Next is the Responsive phase. This is the phase where intelligent IT is introduced for the planning and control of the warehouse. These tools provide insight in the workload, available capacity and deadlines, in order to improve the utilization of staff and resources. This helps the warehouse to anticipate on variations in order patterns and volume fluctuations. The warehouse, in fact, becomes chaos tolerant!
Collaborative
The model ends with the collaborative phase. The previous two phases transformed the warehouse into a strong link in the supply chain. Now the warehouse is able to act as an equal partner to internal departments such as purchasing, marketing and transportation planning and external parties such as suppliers, customers and carriers. The logistics manager no longer tries to solve problems with might and main, but rather resolves the bottlenecks jointly with other departments. It is not just about doing things right, but above all to do the right things! This revolution in logistics thinking is the ultimate goal of Highly Competitive Warehouse Management.
Practical Case Study: Royal Dutch Air Force
Read the practical case study on how the Royal Dutch Air Force uses Highly Competitive Warehouse Management to streamline its logistics center in Woensdrecht.
Do you want to know more?
Are you curious how we may guide your warehouse to a higher level, feel free to contact us.
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