The layout of the building should be based on a complete analysis of the flow of the work process and all the necessary movements of people, loads, material and equipment of different types, shapes and weights.
The Three ‘A’s
AGILITY
Objectives: To operate the warehouse in a sufficiently nimble fashion, to be able to respond to sudden changes in demand, and to have the capability of handling predictable disruptions according to a prearranged plan.
Methods:
- Create a plan to ramp up to meet a sudden 30% increase in volume.
- Do the same for an unexpected 30% decrease in volume.
- Create contingency plans to deal with a variety of disasters.
- Create a crisis management team with procedures and readiness drills.
ADAPTABILITY
Objectives: To create long-range capabilities to meet market shifts, management changes, and technological developments
Methods:
- Insure that no single customer represents over 30% of warehouse capacity or revenue.
- Create a succession plan for every management position.
- Create a research and experimental team to test new concepts and methods.
- Perform annual management reviews of emerging technology.
- Measure and evaluate the needs of your customer's customer.
ALIGNMENT
Objectives: To insure that both the long and short term goals of warehouse managers are aligned with corporate goals
Methods:
- Review warehousing goals with senior management each quarter.
- Create incentives that reward managers for achieving corporate goals.
- Evaluate and communicate changes in corporate strategy and goals.
- Share risks and gains of warehouse improvement initiatives.
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