OPTIMIZATION IN DISTRIBUTION CENTERS

The distribution center plays an important role in supply chain fulfilment, no matter how quickly they get out the door, almost all companies see their revenue growth slow over time as their mature business. Startups and established businesses must adopt different operating strategies for growth to continue.

“Getting something to reach the optimal situation or the best possible results”. This is one of the definition of the word optimize, which allows us to glimpse the main objective of this action: the results. The search for adequate results, which meet the necessary standards or expectations, is the objective of all applied action.

Fully understanding your current and future growth needs and objectives provides a foundation for planning an Optimum Efficiency Distribution Center that moves and delivers products efficiently. Let us cost-effectively analyze your customer satisfaction through reliable logistics.

When formulating their growth strategies, mature companies often overlook whether they consider their compliance capabilities to be limited or outdated, thus impeding their growth.

Changing business environment – Companies usually have an independent structure and organization, planning and objectives. However, this independence does not prevent the company from being influenced by its surrounding environment, as it belongs to a more complex economic system.

The structure of that environment, the relationships that are established in it or the changes that occur have an influence that the company cannot and should not ignore. That is why we must consider what environmental factors can influence the activities of our company and the effects that these can produce.

Use of resources - It may be time for a different approach if your labor costs are rising but performance levels are not. This challenge often arises when a Distribution Center tries to handle a higher volume of products. Often in this scenario, workers must handle products twice and workers on the next shift must focus on replenishment.

Storage capacity - Reserve storage facility at full capacity. Ideally, during normal operations, an optimized Distribution Center installation will use less than 85 percent of its reserve storage space. If you regularly use more than this, you may need greater ease of storage and replenishment for products, along with expanded capacity for peak periods.

Analyzing these challenges and opportunities and cross-referencing them with projected future growth will help you determine the best course of action to achieve growth in your specific business and market. The goal is to achieve a competitive position based on lower transportation costs and speed of service.