As an implementation Project Manager for HighJump Software, my favorite projects involve both WMS warehouse management system savvy clients who know exactly what they want and the methods they need to achieve the prize and the ‘virgin’ WMS client who provides fertile ground but doesn’t know how to plant the seeds or reap the harvest. I find helping both to achieve their goals is personally rewarding and fun.
Having 19 years of direct distribution experience and nearly 10 years as an industry software consultant, I reluctantly concede that I'm an ‘old dog’! Can you still learn new tricks from an ‘old dog’? I think so... I sure hope so!
Our world is full of absolutes. I won’t define the term; you hear it every day. In response to a question with a pre-determined expectation of the answer, the responder emphatically exclaims, “Absolutely”! The statement leaves no room for doubting the emotion, resolve or position of the claimant! It is absolutely true that 1+ 1 equals = 2, and that F = ma (look it up - hint: Newton's second law of mechanics), but aside from math and physics there really are very few things in this world that are indeed absolute! Especially when it comes to the areas of business, economics, politics, or raising kids!
So goes the same for warehousing. Unfortunately, methods, processes, and procedures involved in running a warehouse are not absolute. While it’s true that the underlying concept of warehousing is the same for any company, the methodologies can and do vary dramatically. A former boss once told me that ‘Distribution is a simple business – you buy something for 50 cents, put it on the shelf, sell it for a buck, and ship it to the customer – what makes is so damned difficult are the customers!” What did he mean? Not hard to read between the lines really… customers want on-time delivery, discounts, special packaging, custom product labels, advance ship notices, free freight, and the list goes on. No absolutes here! Every customer wants something a little different and it’s up to a creative management team to provide all of these ‘wants’ to retain or gain a competitive edge. But if there are no absolutes to turn to when presented with all of these challenging customer requirements, what’s a company to do? Make sure the WMS warehouse management system you’re using or plan to acquire is completely, definitively, and categorically void of absolutes! If it isn’t, be prepared to endure increased operating costs and operational workarounds every time your business model changes, i.e. a new customer service request that they absolutely must have in order to continue doing business with you.
Many new phrases have become part of our everyday lingo as a result of the recession. One of my favorites is "Shovel Ready" It’s not nearly as cryptic or technical as "TARP" aka, Toxic Asset Relief Program, but it’s catchy! It’s a term that was used by President Obama in a Dec 7th airing of Meet the Press when he talked about the kinds of projects that the stimulus bill would help most. It wasn’t long after that when we began to hear every local politician use the term on the nightly news! Congress made the term quasi official when it incorporated the spirit of the phrase in legislation that provided stimulus money to construction projects that could be started within 90 days of receiving the funds. Meaning only those projects that had already completed the necessary preparatory tasks before the project could actually begin. Being an system implementation project manager, I’ve developed affection for the term!
Not all projects require a ‘shovel’ in the toolbox of things needed to get the job done, but all projects do indeed require a period of preparation before executing them. So, I ask… is your WMS - Warehouse Management System implementation project "shovel ready"? Perhaps you’ve just purchased a new WMS system to replace a technologically outdated one or to replace a paper based system. Either way, there are many things you can/should do to prepare for this life changing event! One of the more fruitful yet least desirable tasks in preparing a warehouse for a new system is general housekeeping!
- Got inventory that is aged or obsolete still gathering dust on your shelves? Write it off, toss it, donate it, recycle it, return it to the vendor, but by all means get rid of it! Got the same item located in seven different locations around the warehouse? Consolidate it to as few locations as practical.
- How about inventory sitting at the ends of the aisles, or on the office supply racks, or sitting on the floor of someone’s office? (really, I’ve seen this). Move it to where it should be - even if that means out the back door!
- How about old torn and faded shelf/bin labels that are now unused residue of a re-slotting project? Get the goof-off out and remove them, as it’s likely you’ll be doing some bin re-labeling as part of your WMS Management System implementation.
- Got any racking, shelving, material handling equipment like wobbly carts in need of repair? Do yourself a favor and include repairs as part of your ‘shovel ready’ preparations - it’ll be a visible demonstration of management’s commitment to change.
- Then there’s the data scrubbing task. Everybody has ‘junk’ in their item files – discontinued or obsolete items, duplicate items, and even non-existent items! Have your IT folks clean the data ‘house’ before you convert.
I could go on, but you get the idea. A ‘shovel ready’ WMS implementation will go a long way in smoothing the often bumpy road to a successful transition.
A trendy term bandied about for years by process analysts, project managers and business managers in general is ‘best practice’. You’ve all heard it, but I wonder if everyone knows what the term really means? I use it all the time and was recently challenged as to what I meant when I said it. I offered my professional explanation, but afterwards wondered if my definition was correct. So, remembering my childhood instruction on how to find out about something - I ‘looked it up’.
Wikipedia’s definition is: “A best practice is a technique, method, process, activity, incentive, or reward that is believed to be more effective at delivering a particular outcome than any other technique, method, process, etc. when applied to a particular condition or circumstance”.
I choose to quote Wikipedia’s definition because it provided validation for the point I’m about make. The operative phrase in Wikipedia’s definition is ‘believed to be’… the best. Ah ha! That indicates a best practice may or may not be the best, or worst. Let me illustrate – Is it better to put peanut butter on both sides of the bread with the jelly on top of the pb or put all the peanut butter on one side of the bread and just jelly on the other when preparing a PB&J? Which would be considered the “best practice” for this task? Both methods achieve the desired outcome; neither requires significant extra effort, time, or materials and each is suitable to the maker’s personal preference and skill. In this case both methods can be considered a ‘best practice’.
So the next time you’re told that how you’re doing something in your warehouse isn’t ‘best practice’, don’t hesitate to challenge the teller! Clearly there are proven methodologies that are better than others, but the ‘best practice’ isn’t always applicable to every circumstance. A supply chain best practice is often suggested by the eye of the beholder who is not the doer!
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