The most labor and cost intensive action in your distribution center is order fulfillment, specifically manual fulfillment. According to Martin Murray’s “Order Picking in the warehouse”, the cost of order picking can be as much as 55% of a warehouse’s total operating cost. Furthermore, manual fulfillment can consume 65% of an employee’s time. Understanding the impact this has on your bottom line can lead to making some new investments and changes to relieve the costs that go into these tasks.
People are busier than ever. Any company’s success is largely based on how they fit into their consumer’s bustling schedule. This boils down to whether you can get your product to where your consumer needs it and most importantly when they want it. A perfect example of this is the major inconvenience of needing your car repaired. Whether it’s sitting in the driveway or waiting at the mechanic’s, getting the right parts to the right place is essential.
The automotive part supply chain is growing and changing rapidly. From warehousing to fulfillment to transportation, this high velocity sector needs to be well managed from a distribtuion standpoint. This video explains how to leverage logistics strategies to provide the best service possible.
The specialized parts sector within the automotive supply chain is currently growing at a rate of 8% each year. Much of this growth is stemming from a rise in popularity in do it yourself auto restoration and repairs.
You can watch your new favorite TV show on your phone, laptop, or TV. You can listen to music in your car and let the best part of the song transition to your home stereo. You can even take a picture let someone across the globe see it instantly. Cloud technology has given us the ability to share and be mobile like never before. It also has capabilities that go far beyond entertainment and convenience. Cloud based systems also provide a great business value, especially when it comes to your auto part supply chain.
Technology has given us great travel tools like cruise control and autopilot. These applications take the guesswork, and ideally the potential for error out of the equation for travel. Although we have the option to let software and tech guide us, it doesn’t mean that we can be completely uninvolved. Turns in the road, traffic, construction, weather and other variables are all factors that force us to adjust our strategy. Supply chain planning, specifically in the automotive parts sector, is no different.
The truckload sector in the United States is a $337 billion market. This makes up nearly 37% of total freight transportation cost. Even in a competitive landscape where there are more shipping and transportation options and decreasing demand, rates for this vital element continue to rise.
Imagine trying to pick up that last minute gift at the mall only to find that there is a long line and only 1 cashier. Or on your way to the beach for vacation when all of a sudden six lanes become one and you’re now calling for a late check-in. While these bottlenecks are frustrating, they can largely be avoided by timing and planning. Your supply chain is the same way. Every operation experiences bottlenecks that effect productivity. However, with the right technology, systems, and proper planning, a more efficient supply chain can be achieved.
Spark plugs are essential to the internal combustion engine. This is the element that ignites the fuel and air mixture within the cylinders, creating the, well, spark, that keeps your car moving down the road. However, spark plugs are components of your vehicle that will wear and eventually need to be replaced, otherwise you could be stranded. Just as the maintenance of your car’s spark plugs can keep it running and healthy for years, your order fulfillment and logistics processes may also be due for a check-up; otherwise new consumer demands and market challenges could leave your supply chain sputtering.
The most labor intensive and costly responsibility in your distribution center is order fulfillment, specifically manual fulfillment. According to Martin Murray’s “Order Picking in the Warehouse”, the cost of order picking can be as much as 55% of a warehouse’s total operating cost. Furthermore, manual fulfillment can consume 65% of an employee’s time. Recognizing the stress this puts on your bottom line can lead to making some new investments and changes to relieve the costs that go into this key element.