Improving your distribution center operations is one of those achievements that has positive ripple effects through your company. That’s probably why 97% of companies surveyed in May 2008 by Aberdeen Group plan to improve warehouse functions in the next 24 months.

The challenge explored in Agile Logistics: Transforming the Distribution Center: Improve operations while staying aligned with your company’s missions — and without breaking the bank.

The main reason attention has turned to distribution centers at this point in time is the growing belief that supply chain functions are the driving force behind maintaining your company’s competitive edge. In the past, many companies viewed supply chain operations as a cost center.

OK, you’re saying. We can get more out of our distribution center. But what if we only have the time right now to focus on one aspect of operations?

The answer: Ramp up the way you use labor management software. Only 20% of companies surveyed said they’re getting the most out of it. But 30% have put it at the top of the to-do list for the next 24 months.

Why? It greatly improves the “real time” visibility to how staff is currently deployed — and helps guide managers to re-deply staffers where necessary.

Supply chain operation pros weighed in on three central aspects of upgrading warehouse functions.

First, the planning stage. What actions do logistics pros plan to take in order to improve supply chain agility?

• Make the warehouse more flexible and agile as demands evolve: 50%
• Get more mileage out of labor: 37%
• Increase visibility to inventory, order status and general warehouse activities: 36%

How do these logistics pros plan to get there? What specific strategies will be required in order to implement the necessary actions? How are these priorities ranked?

• Improve warehouse processes: 67%
• Phase in new warehouse management software: 32%
• Upgrade existing warehouse management software: 27%
• Make better use of material handling equipment: 22%

Finally, what do logistics pros figure they’ll be against this year, in trying to implement these changes? They realize change doesn’t come without a price, or at least without resistance. What hurdles do they anticipate having to clear?

• Supporting increased sales — without getting more space or more staff: 49%
• Running out of space: 35%
• Bigger fluctuations in supply and demand: 34%
• Customers requiring quicker turnaround on orders: 32%

Tags: inventory, software, supply chain, warehouse