Company: White Papers and Blog

 

Consider These Components When Planning Your Distribution Strategy

Date: Tue, Mar 31st, 2015 12:00:00 am

One of the best ways that any business can cut costs is by improving their distribution strategy. Long gone are the days of the person-to-goods distribution strategy. Today it's all about a more automated goods-to-person system.

Here are our tips for making your operations more efficient.

Improve Your Distribution Operations

Managing Time

In the person-to-goods distribution strategy, it was acceptable for personnel to spend 60% of their time traveling and 40% of their time picking. However, a goods-to-person distribution strategy eliminates the need to travel from one product to the next. An automated system brings the product to the personnel.

Getting it Right

In the modern business world accuracy is more important than ever. Get one order wrong, and the client is likely to take their business elsewhere. The beauty of the goods-to-person distribution strategy is the level of accuracy that can be achieved. Where the number of SKUs has multiplied, its essential to find and ship the right product every time.

Environmental Advantages

When a facility implements a goods-to-person distribution strategy, it will likely reduce its carbon footprint. The use of high efficiency batteries and other environmentally conscious energy sources means reduced costs and a cleaner operation.

Lowering Labor Costs

With use of e-commerce on the rise, distribution facilities are hiring more workers to meet demands. This is expensive, and conversion to a goods-to-person distribution strategy can mean the need for fewer workers. An automated system may cost more initially, but will save the organization exponentially in the long run.

Maximizing Space

When workers must wander aisles looking for the right product, it means that there is a lot of warehouse space that's not being used for storage. A goods-to-person distribution strategy eliminates unused space, meaning it's possible to store more in the existing space and eliminating the need to purchase additional or larger warehousing.

Improve Efficiency With Kuecker Logistics Group

In addition to the strategies above, Kuecker Logistics Group can provide tips and assistance to keep your operations smooth. Call (816) 666-8404 today to get started.