7 keys to improving distribution productivity
Proven principles can help shippers improve warehouse productivity and throughput 10%-30%, claims consulting firm Tom Zosel Associates (TZA) (www.tzaconsulting.com). To that end, TZA has identified seven key principles it believes shippers should seek to improve their distribution productivity. These results can be realized through the intelligent application of engineering, labor reporting software and execution management.
"While many companies have significantly reduced operating costs and increased performance through productivity improvement programs, the majority of the market is still unaware of the potential that exists in their companies to realize substantial performance gains through productivity initiatives," says Evan Danner, president of TZA. Companies can achieve double-digit productivity gains, at low risk, by applying the following techniques, Danner asserts:
- Start withindividual accountability.
- Buildstandards based on the right methods and procedures.
- Productivity can be improved through software or engineering, but results are maximized when both are used in combination
- Focus management's attention on the details.
- Train operators and supervisors for success.
- Incentives can work, but only if done well.
- Utilize formal change management teams and techniques.