Distributors and manufacturers are dealing with a myriad of challenges in 2021 as volatility and change have accelerated after the pandemic. On the demand side, the massive shift from retail to e-commerce purchasing puts enormous pressure on omnichannel capabilities. In addition, it has accelerated volatility of customer tastes and choices. On the supply side, increasing tariffs, supply issues and a host of transportation bottlenecks are giving supply chain leaders more challenges.
Is your business booming? Congratulations! That is, unless you manage material handling and you’ve tried to order new assets to handle the onslaught of orders, and have gotten the news about long lead times.
If you’re under constant pressure to cut costs and increase uptime (and who isn’t?), you may feel like you’ve exhausted every pricing option. What you may not realize is that you’re probably overlooking hidden costs. We’ve put together 10 mistakes that are likely increasing the costs of your material handling program. Take a look!
We talk to a lot of supply chain, manufacturing and distribution execs, and we know a lot of them got to where they are by being control freaks (and we mean that in the nicest possible way). After all, when you take your job seriously, it can be hard to trust that an “outsider” will buckle down, let alone understand enough about your operations to actually improve certain things.
Today, you probably outsource many critical, but non-core parts of your operation, such as delivery vans, long-range semis, MRO products, and more. This is probably because you’ve seen the cost benefit--and you understand the added soft benefit of allowing your people to focus on your core business, instead of these ancillary enablers. After all, semi-truck experts are likely to know a heck of a lot more than employees whose job descriptions don’t even mention the word “semi-truck.”
As we all know, the pandemic has taken a toll on many businesses. If you’re facing pressure to slash costs, you’re not alone. And, if you’re like most execs, you’ve pored over your supply chain costs, looking for cost-cutting opportunities. It’s great that most companies have eliminated waste from their line items—unless your annual review rests on cutting costs. Then, it can feel like you’re trying to squeeze blood from a stone. The upside is that there are effective ways to take the fiscal sting out of the supply chain--you just have to know where to look.