THERE IS A HELL! - - - IT IS CALLED RETAIL THE WAREHOUSE | Page 3

THE WAREHOUSE DOUBLE CHECK ORDERS A really bad motto for a distribution company is "We fix our mistakes faster than anyone else in the business." For the typical distributor, the cost to process an order is about UK£20. It costs an additional UK£50. to send it out the second time. None of us has enough margins to be able to absorb this cost on a regular or constant basis. In order to get it ri ght the first time, install a method of double-checking using one of your seasoned veterans. This is especially important if you have new people picking orders. CREATE COLOUR CODED LABELS In order to make it easier for your delivery staff, develop a custom coloured label for each of your most valuable customers. Make sure every package you deliver to that customer has that label. Your drivers will be able to quickly identify those orders. You don't want to make mistakes on orders to your best customers. IMPLEMENT “DAYS WORK IN A DAY” Simply stated: "What is started today, must be completed today." If you receive it, it must be put away. If an order is put in the system and a pick ticket is printed, it must be picked and shipped or staged. In order to make this happen, create cut-off times. Order processing must end at a defined time. We need to give the warehouse a chance to finish the day. IMPLEMENT CYCLE COUNTING Most of us know what it is. Some of us recognize the benefits. Few of us have made it part of our standard operating procedures. Cycle counting will increase the accuracy in your systems. By examining inventory daily, you'll find those mystery items that have found their way to the shelves. You can correct items that have been put in the wrong place. You can rotate stock. The list can go on indefinitely. Cycle counting is penicillin for distributors because it attacks so many little problems and solves them on a timely basis. Good customer service begins in the warehouse. Sloppy procedures and a disorganized warehouse show what you think about your customers, you employees and the work you do. Pardon my rant, but a lack of supervision in the warehouse is more than a minor annoyance of mine. It’s gotten to the point that not only so many companies lack adequate supervision; they won’t even recognize supervision as a tool. That’s right, after decades of brainwashing by the “experts”, supervision has become a bad word. Today it’s all about “coaching”, “teamwork”, “empowerment”, and “self-directed teams”. So how’s dodie ste®eo p®odu©tion ™ Page 3 of 9