Food Engineering

Attacking inefficiencies in warehousing

November 25, 2008

With increasing levels of uncertainty and the inability to predict supply and demand fluctuations because of global economic pressures, today’s logistics executives find themselves scratching their heads to find balance in the supply chain. According to a recent study from the Aberdeen Group, entitled Warehouse Automation: How to Implement Tomorrow’s Order Fulfillment System Today, executives’ first reaction may be to continue to tighten the belt to ride out the uncertainty and maintain as much status quo as possible.

However, says the report, today’s best-in-class executives are taking this as an opportunity to continue to attack inefficiencies inside the distribution center and identify areas to improve performance to create agility and flexibility and drive value to the bottom line.

Findings in the study say best-in-class companies pick 99.2% of orders accurately, ship 99.3% of orders with accurate items and quantities and saw a year-over-year reduction of more than 3% in labor costs.

For more information, visit www.aberdeen.com.