COVID-19 infections filling up hospitals, gas is up over $4.50 a gallon, Inflation running rampant, transportation costs are going through the roof, your employees are struggling to keep their homes and your customers are scrutinizing every cost on their invoices. I think it is safe to assume our economy is in trouble. This means your supply chain, which you have been neglecting, is crucial to your organizations success or its imminent failure. It is even more basic than that, “Your warehouse is about to make you or break you!”
I am not an economist but the signs look bleak for those organizations that have not addressed the issues related to the distribution of their product. In other words, “Their Warehouse Operations!” Your inability to provide the customer: what they want, when they want it, on a consistent basis, and at a reasonable price will affect the livelihood of your organization during a down cycle. And it becomes impossible to grow!
Woseley announced plans to close 75 locations and said their profit was down by 23%. Many other distributors are feeling the crunch and will ultimately begin “Right-Sizing”. “These are tough times” one CEO said, and I was told by a warehouse supervisor, “It doesn’t take a PHD to chop-heads”.
It’s time to admit you have an, “Ugly Baby!” Or, in distribution terminology, “Admit your warehouse is in shambles!”.
Email rene.jones@logisticsociety.com with your biggest disruption problem and he will email you our guide to giving the ugly baby a makeover.
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