warehousing & distribution

Warehousing & Distribution

Warehousing and Distribution is one of the top cost items for wholesale distributors. Certainly a key driver of costs in warehousing and distribution lies in "process". Inefficient processes can result from a number of factors such as insufficient warehouse or transportation capacity, bloated inventories, failure to re-engineer existing processes, lack of enabling technology, poor mechanized support within the warehouse, etc. Combined, these and other "process" disabling items can lower productivity, financial and operational productivity, as much as 30% to 50% below leaders within the market segment.

Practically all organizations that use 3rd party warehousing and distribution have service agreements. However, many do not have similar service agreements for in-house warehouse and distribution. Why? Shouldn't the commitments to turn around time, quality, seasonal requirements, work week scheduling, fleet maintenance and appearance, etc. be as important in-house as they are for a 3rd party? Not only should the service agreements be part of the internal operating environment, they should also apply to servicing accounts. What does an account or account category cost from a service perspective? How do we insure that that our customer service model contains the right blend of service excellence and adroit financial planning?

At Sinclair Adamson we work hard with our business partners to improve their warehousing practices through improvements in service levels, reductions in total company operating costs and increases in inventory turn. We address the following items on the agenda of senior management and work collaboratively to devise solutions which are cost effective and high impacting: