Page 2: Efficiency
Dexion provide the expertise to harness these many different kinds of technology to help manufacturers and wholesalers - of all sizes to build and operate cost-effective warehouses. A cost-effective warehouse will be as small as can be - keeping rent, building cost, local rates, heating and lighting costs to a minimum. It will operate systems and equipment that keeps products flowing smoothly to the ultimate customer. Such a warehouse will operate with as few people as possible and with as low a level of stocks (also called inventory) as possible.
Completing projects - especially as large as the examples illustrated can take perhaps two or three years from concept to completion. They require a high level of team work between Dexion and the warehouse operating customer, right through to testing to prove the original specifications - including speed of handling, picking accuracy and labour costs - have all been achieved.
Trends in distribution
For most companies the modern objective of the process of physical distribution is to decrease costs whilst at the same time increasing customer service. Customers expect dependable deliveries and in the area of physical distribution, availability, promptness and quality are the most important aspects of customer service.
To meet higher customer demands and requirements, the modern trend is towards smaller but more frequent orders, moving faster and this has placed much greater emphasis upon the need for efficient yet streamlined warehouse operations. Being able to respond quickly and accurately to orders now forms a vital part of customer service, even where ‘shelflife’ is not a predominant concern. Today’s warehouse has become part of an increasingly sophisticated supply chain. The modern warehouse and distribution manager is often required to satisfy the demands of:
- Just-in-time (JIT) systems which require a high level of co-ordination between producers and suppliers. JIT is a technique which focuses upon a business providing a flexible approach to production, with low stock levels and minimum waste. Suppliers and producers are linked through a demanded system which relies upon distribution flows in the supply chain. For example, every time a sale takes place this signals changing stock requirements.
- Electronic Point of Sale (EPOS) systems which link sales trends to customer needs through the use of bar scanning and other retail technology.
- Quick Response (QR) systems which develop a method of working throughout the supply chain to produce a closer relationship between supply and changes in demand. QR is particularly effective in highlighting any change in customer requirements, which then enables the supplier to develop new methods of meeting these changing tastes.