Question & Answer

dcm-t05lom: In your opinion, which of the 2 kinds of trends do you prefer? Is it the Past trends or the Current trends. Do support with your answers.

Before answering your question, we will like to have a brief discussion on both the past trends/challenges and the current trends/challenges facing the warehouse/DC.

For the past trends/challenges, warehouse/DC includes many labour intensive activities such as the extensive use of bar-coding - this incurs high overall cost for the warehouse operators. Over the years, technology advancement changes the once inefficient logistics operations, which gradually becomes one of the current trends facing warehouse/DC now. Due to this, warehouse/DC utilises advancing technological equipments such as the installation of RFID, introduction of WMS/ EDI, and the use of material-handling equipments etc. With the ideal application of these various technological equipments, the efficiency and effectiveness of the warehouse/distribution center will certainly improve: enhancing customer satisfaction and assuring accuracy. Another current trend includes the increasing tendency of building warehouse/DC to its height allowance as land is one of the main constraints that warehouse/DC is always facing. Therefore, by adopting high bays, warehouse/DC is able to reduce the land area and maximize the space utilization. Nonetheless, current trends could incur a high operating cost.

Hence, pertaining to your question, we will definitely prefer the current trends facing the warehouse/DC as there are more advantages in the logistical process. However, we would not neglect the past trends since they encourage every influence tending to increase the efficiency of the productive processes. Moreover, the past trends had also directed warehouse operators in overcoming past challenges. As for now, warehouse operators will need to continue stimulating a passion and drive in finding a resolution for the current challenges as stated in our previous entries.

We hope that you are satisfied with our answers. Thank you.

learning-dcm: What would your group recommend to achieve both reduce customer waiting time and operating cost at the same time?

In relation to your question, there had been several points mentioned in our earlier blog entries which can be used as feasible recommendations to achieve both targets.

Firstly, warehouse/DC could consider adopting the cross-dock activity to replace inefficient logistical practices. Cross-docking refers to incoming goods where customer sorts if it is labeled or allocated to customers if it has not been labeled. Goods is then move “across the dock” to get loaded onto the trailer destined for the appropriate customer. Since the goods do no enter the storage area, storage costs will not be incurred.

Secondly, warehouse/DC should consider investing in high technology equipments such as RFID – this would improve warehouse/DC’s efficiency and effectiveness. Therefore, warehouse operators will manage to reduce customer waiting time, and also substaining a lower operating cost in the long run due to the high returns from the investment.

Lastly, as mentioned in our previous blog entry, warehouse/DC could incorporate softwares such as WMS, EDI into the logistical processes. With the implementation of these softwares, inventory accuracy and communication efficiency can be enhanced between the manufacturers, retailers, and customers. In the due course, these softwares can assist in reducing total admin costs and improving customer service levels.

Ultimately, reducing customer waiting time and keeping low sustainable operating cost is the optimal aim of warehouse/DC.

Please do browse through our entries again for a better understanding. Thank you!