Tag Archives: warehouse

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Are you facing a labour productivity challenge?

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Labour is generally one of the biggest costs for most companies, sometimes as much as 50 – 70% of annual budget. Managing and reducing labour related expenses while maintaining robust customer service levels can seem like a never ending challenge that many companies struggle to tackle or maintain.

The benefits for those companies who accept the challenge are far reaching; cost reductions, improved productivity, increased customer satisfaction and more streamlined efficient processes.

In short, a distinct competitive edge.

If you are thinking of tackling labour productivity Les Flanagan Logistics Services Ltd provide a full project management service that delivers significant results fast.

Our most recent project in a manufacturing warehouse, employing 90 staff, delivered annual savings of over £300k.

We have more than 4 decades of experience in management consultancy and business development within warehousing, distribution and logistics.

We have worked both large and small organisations including Sainsbury’s, Wincanton, M&S, Tibbett & Britten, Dairy Crest and Neals Yard Remedies. We are supply chain specialists with in depth experience in warehousing, labour relations and performance management.

The benefits of working with us are;

  • a bespoke, tailored project management approach that works with your business. We are big enough to be the best at what we do but small enough to offer a personal service that makes you our top priority.
  • a comprehensive work rate analysis of every measurable task based on professional work measurement and method study techniques. The analysis highlights inefficiencies, duplications, double handling and lost time allowing you to make focused changes swiftly.
  • a detailed work flow evaluation which identifies the speed of movement of key lines and makes smart, achievable recommendations that will reduce travel time, eliminate congestion and streamline the process flow.
  • an examination of your labour management techniques and structured training for all management levels on how to maximise labour force productivity.
  • a thorough investigation, feedback and training on organisation and work load planning with a real focus on managing avoidable peaks, troughs and bottlenecks that impact efficiency.
  • ongoing support, training and guidance that ensures you implement the recommended changes and reap the rewards.

If labour productivity is your challenge for 2017 then get in contact now and let us help you get that competitive edge.

Please email Les@LFLS.org.uk or call 07768 148208.

We are a small team which allows us to offer a real personal and tailored project management package but it does mean that we book up fast so we would advise you to get in contact quickly to guarantee our help this year.

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Logistics trends to watch out for in 2017

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As the New Year gets underway I thought it would be useful to look at how I believe supply chain and logistics services will develop in the next 12 months.

I predict that our industry will be subject to aggressive transformation in 2017. The continuing growth of e-commerce, the increasing empowerment of consumers, the stagnation of bricks-and-mortar retail and Brexit will all play their part in influencing change.

As industry leaders we need to recognise these challenges as opportunities. As traditional practises get turned on their heads we have a real chance to innovate and revolutionise our industry.

Those who embrace change will be at the forefront of one of the most exciting times our industry has experienced.

So what are the main trends that will act as the catalysts for these changes?

Growth of e-commerce – there is now hard evidence that traditional bricks-and-mortar retail is stagnating. As you would expect e-commerce continues to go from strength to strength. Overall the trend is for Omni channel retail which in turn will mean more companies looking to add or extend their online offering. As industry professionals we should be looking to develop our capabilities and services around e-commerce logistics.

Same Day Delivery – the genie has definitely been let out of the lamp! What we used to say was impossible is now quickly becoming the norm. With companies such as Amazon and Argos trailblazing this service, customers are beginning to expect it, and other retailers will have to get with the trend in order to stay competitive. Can you offer retailers a same day solution?

Customer centric deliveries – we are living in the age of increasingly empowered consumers. They expect delivery to be about them. They need to be made at a time that suits them, to a destination of their choosing. They want to be able to change the delivery time and place last minute. They want to know the name of the driver and see a photo. They especially want to be able to track and trace that last mile.  This is a paradigm change for the industry and creates real opportunity for technological innovation and creativity.

Supply chain visibility – the growth of e-commerce challenges logistics providers. Automation, high volume, stocking products in line with demand, multiple delivery options all make traditional practises unworkable. We are entering a new world of full supply chain visibility. Companies want to be able to track their products from manufacture right the way through to the final moments of delivery. They want real time information and touch of a button reports. To keep at the top of our game we need to have the technology and skills to be able to offer service at such a detailed level.

Brexit – the full effects of this are unknown and it is extremely difficult to predict what will happen. We could see an upsurge in trading with countries such as China as free trade with European countries ceases to exist. Import and export in and out of the UK may take a hit and shipping companies may feel the pinch. I will be watching developments keenly.

I am looking forward to 2017 and am eager to see how our industry responds to the challenges ahead.

Who knows may be next year I will send you all a copy of my article using a drone!

All the best for 2017, Les.

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THE LOGISTICS OF CHRISTMAS

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It’s time to get the log fire burning, mull some wine and settle down with a mince pie or two and watch a feel good Christmas movie.

But before you switch off completely I thought it would be fun to take a look at some mind boggling Christmas logistics facts and figures.

First we must pay homage to the ultimate King of Christmas Logistics, Father Christmas himself. While we are all still trying to find solutions to the ever changing supply chain, he has been quietly providing the definitive next day timed delivery for hundreds of years. Maintaining exceptional customer service and 100% delivery accuracy means his place as King is guaranteed for some time to come.

Do you know he flies 317 million miles on Christmas Eve. That’s 1800 miles per second!

Recently he has reacted to customer demand and now offers a track and trace option through his Norad Tracks Santa Site

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The most amazing thing is his charges have never been subject to any kind of increase. He still does all this work for a glass of Sherry, a mince pie and a carrot for Rudolph!

All of our businesses have been affected by the growth in B2C and it’s easy to see why when you take a look at how the value of online Christmas shopping has increased since 2012.

value-of-online-christmas-shopping

Online sales are showing no signs of slowing down. In fact online spending is forecast to continue to grow for the foreseeable future.

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As the amount of money we are spending online goes up so does the number of parcels we are expected to deliver.

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More parcels means more vans and light delivery vehicles.

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And let’s not forget all the extra picking, packing and deliveries means a substantial increase in workforce over the festive season.

Here’s how Christmas affected a few of our major players last year.

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So, if you are feeling exhausted and ready for the holiday now you know why!

Happy Christmas and a relaxing New Year to you all!

Group of multi-ethnical people celebrating their new start-up business.

Are you delivering customer service excellence?

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The relationship between business and customer is the true foundation of any 3PLs success.

“By developing close relationships with clients and reacting to changes in the market, 3PL firms are giving customers the vision and capability to grow now and in the future” Nigel Wright

Excellent customer service and the ability to pro-actively meet the challenges of the ever changing supply chain give 3PLs a distinctive edge in this highly competitive market.

As we all begin to review 2016 and plan for 2017 it’s a great time to take a look at your customer service.

In my opinion, excellent customer service stems from outstanding performance in four key areas of your business, information technology, delivery solutions, your people and cost.

Information Technology

State of the art WMS allow you to provide customers with transparent, accurate real time data on inventory, stock movement and costs. This touch of a button technology impresses customers providing the ability to solve queries and get answers quickly.

As supply chains become increasingly demanding and customers require pallet, layer, case and single picks WMS provide sophisticated systems that allow you to provide full service solutions.

Cutting edge WMS provide paperless, error proofed processes. This not only looks impressive and reassuring to a customer but also improves overall accuracy and efficiency that becomes visible in excellent KPI’s.

It is not enough to just install a WMS. Frequent changes to the supply chain mean to be progressive you need to be constantly working to improve and expand the capacity of your system.

Delivery Solutions

As B2C services continue to expand with the growth of the e-commerce culture, you need to find creative, cost effective solutions to offer your customers.

Traditional lead-times of 3-5 days are simply not good enough anymore. You need to have reliable next day, same day and even 2 hour delivery solutions. On top of that the end user is demanding full track and trace, flexible delivery slots, parcel shop and click and collect.

To provide the best service you need to be working on solutions to all of these challenges.

People

Your greatest asset is your workforce. The key to providing the highest level of customer service is excellent staff, who enjoy their job, understand their value, are unafraid to suggest new ideas and improvements and who communicate enthusiastically and professionally with staff and customers alike.

A strong leadership team and a multi skilled workforce are essential.

Attracting and retaining the best quality people should be a key component in your business plan. Good salaries, clear training and development plans, comfortable facilities, clear communication, multi-level involvement in decisions, investment and fun should all play a part in your core values.

Cost

Cost remains and always will be a key component in any customer service solution. However customers now place a much higher value on exceptional service and niche solutions. Costs should be flexible and transparent and clearly communicated and documented.

Customer service excellence is the driver of growth for both your customer and for your business. Achieving the highest standards possible should be a major priority for you in 2017.

Huge distribution warehouse with boxes on high shelves

What is a 3PL?

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3PL is the abbreviated version of Third Party Logistics and originally started out as a military term.

Now 3PL refers to companies who offer a comprehensive and wide range of outsourced services for pretty much all aspects of your supply chain.

When I started my career in logistics 3PLs simply looked after your products and ensured that they got to all the right places at the right time.

Competition, advances in technology, increasingly intricate and demanding supply chain requirements, the e-commerce boom and global growth have seen the range of services offered by 3PLs increase dramatically.

3PLs are now strategic partners who add serious expertise and logistics proficiency to your business.

You can expect your 3PL to define your logistics, take bold steps to improve your supply chain, manage costs and generate ideas for improvement.

Partnering with the right 3PL is a key component in your company’s success.

Let’s take a look in more detail at the services 3PLs provide.

Warehousing

  • Basic functions of store, pick, pack and ship
  • E-commerce order fulfillment
  • Returns processing
  • Gift design and packing
  • Product customisation and rework
  • Sourcing packaging

Transportation

  • Pallet deliveries
  • Parcel delivers
  • Container shipments
  • Reverse logistics
  • Import
  • Export

Information Technology

  • EDI order receipt and processing
  • Web and cloud based order communication
  • Advanced warehouse management systems with real time RF control
  • Extensive reporting capabilities
  • Access to live stock data

Customer Service

  • Designated telephone number for your customers
  • Trained customer service agents available to support your brand
  • Supply chain consultancy

What are the benefits of working with a 3PL?

You can expect a move to a 3PL to result in a reduction of current costs. 3PLs have a scale advantage that means they can access much better rates than you as an individual company.

The same economies of scale will mean that 3PLs will manage and reduce future costs.

The expertise and know-how of 3PLs will improve customer satisfaction. Their knowledge of supply chains result in on time deliveries presented in line with retailer requirements. Their infrastructure and network allows them to respond quickly and resolve problems fast.

If your growth plans involve exporting then choosing a 3PL with global expertise can provide your company with the tools to achieve your goal.

3PLs can save you a whole lot of hassle and risk associated with running your own logistics. You can avoid additional salaries, the administration of holiday pay and stake holder pensions, work place risk assessments and environmental issues.

If you are launching a business 3PLs can enable start-up. By outsourcing logistics you instantly acquire a large logistics infrastructure that allows you to compete with the more established brands. The use of a 3PL also frees you to focus on sales and growth safe in the knowledge you have the ability to respond to any opportunity that comes your way.

Behind every successful brand is an excellent 3PL.

Have you found your perfect logistics partner yet?

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Top Tips to Problem Free Christmas Logistics

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The Christmas period is valuable to a 3PL both in terms of revenue and reputation.
Our customer’s peak sales season has a direct impact on our bottom line creating a challenging spike in activity.
The festive season with all it demands and challenges also provides us with the opportunity to impress customers.

Exceptional service levels across the busy period drive home and emphasise skill and competence. A successful Christmas highlights and strengthens your relationship with customers and kicks off the New Year on a high.
Here are my tips for problem free Christmas logistics.
1. Start planning early – with Black Friday and Cyber Monday the seasonal Christmas spike begins as early as mid-November. For 3PLs involved in gifts it may even have started as early as September. Planning should ideally begin in August.

2. Appoint a project team – a trusted and experienced leader and team will enable focused planning without affecting your standard day to day operation.

3. Review previous year’s volume and performance – in order to plan effectively it pays to review previous year’s volumes and estimate expected activity levels. Analysis of past performance, challenges and triumphs will enable the project team to design a targeted plan.

4. Set goals – a clear set of goals for the season helps to focus planning and motivate teams. It ensures emphasis is placed on strengthening areas that may not have been up to scratch in the past. Perhaps you need to improve picking accuracy, or on time deliveries?

5. Weekly review meetings – schedule regular review meetings to update managers and teams with plans and actions.

6. Manpower planning – appoint key team members and brief with accountabilities and responsibilities. Schedule additional shifts for weekends and evenings. Recruit and train seasonal staff in advance of demand. One KPI regularly affected during peak periods is pick accuracy. This is often simply down to the use of untrained inexperienced temporary staff. Early planning and up front training is a quick and easy way to remedy this.

7. Materials planning – order in extra materials whether that’s pallets, packing cases, fork lifts, pump trucks, tape guns or shrink-wrap. Nothing brings a process crashing to its knees quicker than a lack of materials.

8. Prepare for returns – reverse logistics can see a huge spike over the festive period. Ensuring you have a robust returns process will guarantee returns won’t become a distraction and affect your outbound operation.

9. Communicate with customers – begin to talk to customers as early as possible. What are their plans? Are they running any specific promotions? All this data can then be factored into your planning. Update customers on your plans. Tell them who is heading up the Christmas team and what additional services are available. This is a real opportunity for you to impress and inspire your customers with confidence. Make the most of it!

10. Communicate with suppliers – organise additional collections with Royal Mail and your parcel carriers. Brief hauliers and contractors on increased requirements. There is no point getting all the orders picked on time if you haven’t organised the additional resources to deliver them.

11. Don’t forget customer service – the seasonal period always sees a huge spike in emails and calls to your customer service team. Where is my parcel? What’s the tracking number? My parcel is damaged! In order to maintain a high standard of customer care, why not appoint a person or small team to work solely on this throughout the busy period. You will be able to give customers a clear process and point of contact that will reassure them and you can avoid this increase in work affecting your normal day to day workload. It’s also worth investigating automated tracking number notification with your parcel carrier.

Providing exceptional service levels through peak periods is what defines great 3PLs.
Make sure you stand out this Christmas.

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10 facts you didn’t know about Black Friday

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Love it or hate it Black Friday, Black Fiveday and Cyber Monday are here to stay.

This year Black Friday falls on 25th November.

Black Fiveday kicks off on Thursday 24th November and runs through to Cyber Monday.

Cyber Monday falls on 28th November.

Here are 10 facts that you probably didn’t know about the event and its history.

Black Friday used to refer to US stock market crashes in the 1800s.                                              

Although it is now known as the biggest shopping day, in the US the term “Black Friday” originally referred to very different events.

The first time the term was used was on 24 September 1869, when two speculators attempted to corner the gold market on the New York Stock Exchange. The government stepped in flooding the market with gold, prices plummeted and many investors had a very black day and lost large fortunes.

Black Friday now references the huge profits that are generated on the day.                                 

Many retailers see their biggest profits of the year on Black Friday. Black has always been associated with profit whereas red has always been associated with loss.

Black Friday is always the Friday after Thanksgiving which is celebrated on the 4th Thursday of November.                                                                                                                                                    

Tradition denotes the Friday following Thanksgiving marks the official start of the Christmas shopping period. The department stores in New York City embraced this concept and in 1924 the world famous Macy’s Christmas Parade began.

Black Friday didn’t officially become the biggest shopping day of the year until 2001.                        

Up until 2001 the biggest shopping day was the last Saturday before Christmas. Black Friday has cunningly converted us from shopping procrastinators and last minute buyers to early organised bargain hunters.

Black Friday has now become Black Fiveday.

In an attempt to maximise sales and profit retailers have extended the original one day event to a 5 day bonanza starting on the Thursday and going all the way through to Cyber Monday.

Cyber Monday was the online version of Black Friday.

Black Friday was historically a bricks and mortar event. As e-commerce sales grew e-retailers created their own version of the mayhem and called it Cyber Monday. In reality the whole 5 days of madness is now available both in store and on online.

Retail consultancy Salmon are tipping 2016 as the best so far for consumers using smartphones to bag their deals.

They are predicting approximately 5 billion pounds of sales over the five day period, 2.55 billion of which will be generated by mobile devices.

Research network  SimilarWeb have revealed the biggest profit makers of 2015.

HouseofFraser.co.uk, Debenhams.com, Newlook.com, Etsy.com and Boots.com

If you are looking to grab a deal this year the hot retailers we are being tipped to watch are;

Argos, Amazon, Currys, Marks and Spencers, John Lewis, Tesco, Gam and House of Fraser

According to a Royal Mail survey:

52% of people spent more on Black Friday 2015 then they did in 2014 with an average spend per person of £191.00 and an average purchase per person of 5 items.

However you feel about Black Friday its impact on our economy and businesses is undeniable.

I recommend we embrace it fine tune our own sales and promotions to make the most of it and don’t forget to bag a bargain or 5 for ourselves!

young business team putting their hands on top of each other at conference and smiling

OPERATIONAL EXCELLENCE – DELIGHTING CUSTOMERS

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Today’s rapid advances in mobile technology mean customers are better informed, more demanding and have greater expectations for a faster and more accurate service.

To a business this means new challenges in the form of greater visibility and reduced order lead times.

Operational Excellence is the key to meeting these challenges.

It can

  • deliver great customer service
  • enable business growth
  • improve financial performance
  • enhance employee satisfaction and retention

Successful implementation relies on

  • strong leadership
  • high performing teams
  • well-designed processes
  • robust review mechanisms

Operational Excellence does not have to be complicated and it can be applied to any size business, division or department.

Strong leadership

To succeed the leader of the business must communicate a clear vision, be committed to making change happen, be engaged with the work force and determined to continually improve the business.

High performing teams 

High performing teams are well informed, fully understand the direction and needs of the business, are aware of customer requirements and challenges, and understand, value and take pride in their part of the business process.

The leadership of the business needs to be fully engaged with employees and all stakeholders in order to deliver the required results.

Well-designed processes

The key business and support processes must be well defined, simplified, documented and trained to all staff involved in the process.  Appropriate process measures should be in place to monitor performance and identify efficiencies.

Robust review mechanisms

Continuous improvement is achieved by reviewing appropriate KPI measures, undertaking internal and external benchmarking and regularly reviewing key processes.

Process performance needs to be measured in terms of time, quantity and quality. In turn these measurements should be used to monitor progress, identify improvements and used to feedback to teams.

Feedback from employees, customers and other key stakeholders is also vitally important in order to adapt, change, improve and perform better. This feedback must be used in a regular review process resulting in appropriate action plans.

To be successful your business needs to adapt to change or it will be changed.

Standing still is not an option.