What Is The Value Of In-The-Box Engineering?

A successful building project goes way beyond just creating a structure. Many decisions must be made throughout the process – some of which could make or break the overall efficiency of an operation.

The weight of these decisions can be eased by enlisting the help of an engineer who truly understands warehousing. An engineer can ensure your new facility operates at maximum efficiency by offering insight on the subjects listed below. 

• Warehouse design. Design is the single most important phase of any construction project. Engineers can focus on long-term efficiency to produce a warehouse design that meets your current needs, while planning for future growth.
• Defining operational needs.  An engineer can start by identifying your most basic requirements, such as ideal pallet sizes, and assist you in identifying issues with your current facility. They can then gain an understanding of how your product moves throughout your facility, and determine where specific items should be placed to deliver the highest level of productivity.
• Selecting the right racking. Every operation has unique requirements, and making the wrong racking decisions can hinder efficiency. An engineer can help you choose the right rack height and layout to optimize your warehouse flow and safety – while maximizing storage capacity. 
• Choosing MHE. Choosing material handling equipment may seem like a simple task; however, it is just the opposite. An engineer will understand the importance of this and will guide you in selecting the proper number and type of equipment, as well as the correct attachments for your facility and products.

Five Mistakes to Avoid When Selecting Material Handling Equipment

Selecting the right material handling equipment (MHE) is often overshadowed by the hundreds of other decisions that come with opening a new warehousing facility. However, selecting the wrong number or type of equipment for the operation can be costly for companies.

Before selecting MHE, companies should do a thorough investigation of their current and future business needs, while avoiding the five mistakes outlined below.

1. Not properly thinking through specs. Do a deep dive of your operational requirements to ensure you are covered for all handling types, especially the infrequent ones. For example, you might miss the fact that a small portion of loads come in shipping containers, and require MHE with a shorter mast to safely enter and exit the container. 
2. Not foreseeing business changes. Study possible developments in your company’s future to ensure proper MHE selection. You might choose to structure a 60-month lease for 20 pieces of equipment, and then find out the next year that volumes are dropping and you only need 15 pieces of equipment.
3. Not building flexibility into a fleet. MHE selections sometimes are based on a company’s current handling needs, but what if next year you take on new business or add new products that the MHE you selected can’t handle? Now you are stuck buying more equipment, resulting in a fleet of underutilized equipment.
4. Not planning properly for battery charging. Companies often focus on the trucks themselves and overlook other requirements to support MHE. For example, companies that select electric equipment must think about proper sizing and setup of a battery charging area. They also need a water source nearby for eye wash and battery watering needs, and it’s imperative that the building has adequate electrical service to handle the quantity and type of battery chargers. 
5. Not negotiating a preventative maintenance agreement. Understanding what is and isn’t included in your maintenance agreement is essential. Companies opting for a fixed maintenance package may overlook expenses that go beyond the fixed monthly rates, such as tires and other wearable items. Having a good understanding of all maintenance expenses enables managers to better predict total operating costs.

Not All Warehouse Management Systems Are Equal

The best third-party logistics (3PL) providers have standardized, repeatable processes that can deliver consistent reliability and efficiency. However, supply chain management is an ever-changing landscape. Only through advanced technology can you get the flexibility to efficiently meet new requirements.

This is why choosing a logistics partner with a tier 1 Warehouse Management System (WMS) is essential. Such systems bring a variety of advantages, such as:

• Flexibility. A tier 1 WMS is versatile enough to meet almost any request a customer has.
• Better labor management. On the surface, this doesn't seem like a customer advantage. However, when a 3PL has access to greater detail on operations, it can allocate staff time more efficiently. As a result, it is able to price its services more competitively. 
• Real-time visibility. This feature simplifies management. Tier 1 systems often have an online portal, where clients can view inventory levels/reports, and schedule receipts and shipments.
• Service reliability and accuracy. A tier 1 WMS enables a 3PL to more consistently and reliably deliver services customers need every day.
• Product safety. Advanced systems not only allow 3PLs to mitigate the occurrence of lost inventory, but they enhance traceability. This is especially important with food and/or serial number tracked products. 

Partnering with a 3PL that has a tier 1 WMS ensures the flexibility to manage your supply chain's constant evolution. It also brings access to features that aid safety and efficiency, while helping to reduce expenses. 

What is the Value of a HACCP Certified 3PL?

The Food Safety Modernization Act (FSMA) is changing how the supply chain functions. Moving forward, companies will need to be more aware of the safety and integrity of their products after they leave the production facility. Partnering with a 3PL company that is trained in Hazard Analysis & Critical Control Points (HACCP), and has a documented HACCP plan is the answer to FSMA standards.

HACCP is a systematic approach to the identification, evaluation, and control of food safety hazards. A plan must be crafted for each food-grade commodity the 3PL handles to ensure specific procedures are being followed. When choosing a 3PL, ask to see their HACCP plan for your commodity. Superior facilities will be able to produce this plan and walk you through their SOPs.

To acquire HACCP certification, facilities must complete a three-day course administered by companies such as ASI Food Safety Consultants. Sessions cover everything from why a HACCP plan is required, to building your own plan. Though retraining is not required, the best 3PLs will take this course every few years to ensure they remain best in class. 

Benefits of working with this type of 3PL include:

• Product safety. Companies gain peace of mind knowing their product's integrity is being protected while outside of their control. Product safety throughout the supply chain is critical. 

• Cost savings. HACCP certified 3PLs have such robust inspection processes that damage or pest issues are identified quickly at the time of receipt. This enables companies to quickly track the issue back to the carrier or porduction facility, making it easier to recoup incurred expenses while preventing future damaged product. 

• Avoid cross-contamination. HACCP certified 3PLs have thorough inspection processes, which help staff identify and deny entry of any contaminated (pest or other contamination) product. This eliminates the risk of cross-contamination with already stored food grade products. 

Know Your Transportation Terms

Transportation seems like a simple concept. It’s about moving products and supplies from Point A to Point B. But there many options to get the job done and knowing the key terms will help you better understand each offering and the industry as a whole.

Take for instance “Transportation Brokerage” and “Managed Transportation.” The two often are used interchangeably, but they are radically different services. Brokerage involves a third party acting as a conduit for a company and the motor carrier to move loads – a very tactical assignment.

Managed Transportation is far more strategic and involves a company outsourcing all transportation functions to a third party. The provider uses detailed analysis and technology to determine the most efficient way of meeting supply chain goals. Managed Transportation is much broader in its scope, looking at a variety of modes as well as warehouse locations.

Other important terms to know include:

• Freight Forwarder. An expert in supply chain management that moves cargo for companies, often utilizing multiple carrier types for a single shipment. Shipments typically travel internationally.

• OTR. Over The Road. Also referred to as TL (Truck Load), these shipments typically travel greater than 350 miles. 

• Shuttle. These are short runs (less than 100 miles) of raw material from a warehouse to a production facility, or finished goods to a warehouse. 

• Regional. Truck loads that travel less than 350 miles within a geographical region. 

• LTL. Less-Than-Truckload. Refers to a shipment that is less than a full truckload. 

• Intermodal. A method of moving freight through multiple modes of transportation, such as rail, ship, and truck. Freight itself is not handled; the shipping container is transferred between the modes. 

• CTB Certified. The Certified Transportation Broker (CTB) program was developed by the Transportation Intermediaries Association. A CTB designation signifies that the professional has undergone rigorous training and testing to ensure they are an expert in the transportation industry. 

Avoid These Costly Warehouse Construction Mistakes

Construction projects are all about decisions...lots of them. It doesn't matter if you're constructing a house or a warehouse, each choice can impact the "livability" of the structure as well as its resale value. 

Companies approaching a new warehouse or distribution center construction project should weigh their options and decisions carefully to avoid some of the common mistakes and consequences listed below. 

• Building too small. Companies not planning for future growth or expansion can end up running out of space sooner than expected. Careful study of current volumes as well as future projections will help avoid this mistake, ensuring a site plan that addresses storage, parking, and other future considerations.
• Building in the wrong locations. Minimizing transportation and handling of products is integral to efficient supply chain management. While a good price on available land or building on company owned property may appear to make sense, it actually may be more costly in the end. Inefficiencies of building in a poor location will quickly deteriorate any upfront savings. Performing a network analysis will help identify the best site for the facility, taking into account all business requirements, options, and constraints. 
• Building the height of the structure too low. Constructing a warehouse that's too low can negatively impact the flexibility of operations and storage space, as well as hurt its resale value. Building taller will reduce the facility's footprint and can accommodate taller racking, which can reduce travel time for Material Handling Equipment (MHE).
• Selecting the wrong racking and layout. Implementing a poor layout and storage system will directly impact your worker safety, labor efficiencies, asset utilization, and can even impact your product. For example, if you are constructing a cooler warehouse, choosing racking that is too tall could restrict airflow and create inconsistent product temperatures. Selecting the right layout will maximize the value per square within the facility. 

Partnering with a builder that has experience in warehouse operations will help companies avoid these mistakes, which can have long-lasting impacts on operational efficiency and flexibility. 

How Will FSMA Impact Carriers and Food Transportation?

While the Food Safety Modernization Act (FSMA) continues to be a work in progress, one thing is for certain – it will generate greater accountability. That accountability will extend through the supply chain to include carriers transporting food products for humans and animals.

The Food and Drug Administration’s (FDA) goal is to develop standards to ensure the safety and integrity of food products. Building off the Sanitary Food Transportation Act, FSMA will test carriers’ documentation skills. In addition, the new rules will bring equal accountability to shippers, carriers, and receivers of food products.

Setting standard operating procedures for tasks such as cleaning trailers, locking and sealing loads, and properly refrigerating products isn't particularly challenging. However, developing a process of collecting, organizing, and storing this information for easy retrieval at a later date is where carriers may face an obstacle.

New standards will make technology almost a prerequisite for carriers.

For instance, document management systems likely will be the norm for linking inspection paperwork to bills of lading. Likewise, the industry could see GPS systems in trucks become standard for carriers, as regulations demand tighter tracking and traceability of food products while they are on the road.

As FSMA approaches, it’s important that food manufacturers review the standard operating procedures of their logistics providers. Questions to ask are:

• Do they have established criteria for inspecting trailers before loading?
• How are these records maintained?
• How quickly can they be produced for review?
• Do they have standards for inspecting products upon arrival?
• How do they ensure trailers maintain the proper temperature for products?
• Do they have real time/GPS tracking and tracing capabilities with their equipment?