Welcome!

Agile Computing Authors: Igor Drobiazko, Tim Hinds, Dan Sarel, John Basso, Derek Weeks

News Feed Item

Distribution Centers Lose Nearly 3,000 Hours a Year on Unproductive Workflows

The warehouse and distribution center is under increasing pressure to reduce cost and increase margins. Recent Intermec (NYSE:IN) research reveals that in the last six months alone, nearly eight out of ten (79%) warehouse managers have been tasked with finding an average 19 percent cost saving from existing operations. Despite this mounting pressure to cut costs and the need to find efficiency gains in every process, managers admit to losing time and money through known inefficient workflows.

The survey base of 250 supply chain, warehouse and distribution managers stated that over an eight-hour shift, each worker loses an average of 15 minutes of productivity in an inefficient process. For a small- to medium-sized warehouse with 50 workers, this quickly adds up to nearly 3,000* hours a year, and could be a significantly higher number in larger organizations.

Although most managers have been tasked with finding cost savings, close to one in three (30%) have not conducted a review of workflow processes in their distribution center within the past year. This is the first step in identifying areas for improvement.

Inefficient workflows

The majority of managers questioned believe the most inefficient workflow in an eight-hour shift to be packing and loading (20%), closely followed by picking and inventory control (both 18%).

This belief is born from the data produced by companies that have recently conducted a workflow process review, who say that inventory control (53%) and picking (47%) are the two areas where cost savings could most easily be achieved.

Strong resistance to change

Perhaps surprising, the research shows that in companies that are yet to take action to improve workflow productivity, there are high levels of resistance to the idea of carrying out a full review.

Managers who have not held a review in the past year say that only compliance (28%) or poor performance (27%) would prompt them to do so today. The latter point is in stark contrast to those companies that have recently conducted a review, and implemented process improvements as a result, who say that they are mostly motivated by compliance issues (26%) or continuous improvement programs (22%) and rate poor performance as a very low (9%) driver for their action.

Most shocking of all in a world in which every customer’s business is hard won, and even harder kept, are the nearly one in five companies (16%) who say they will not review their workflow processes until after a customer complaint has been received.

Meeting cost targets: Every second counts

Whether they are prepared to conduct a review or not, the survey carried out by research firm Vanson Bourne identifies the very clear pressures that warehouse and distribution center managers are under.

Nearly all respondents appear to agree on the key to achieving this goal. When asked how to improve performance across the warehouse and distribution center, the overwhelming majority of managers (89%) said they believed investment in new technology would enable them to claw back their lost time and ensure greater worker productivity.

There is also increased awareness of the value that shaving just seconds off workflow processes can bring. Nearly two-thirds (60%) agree that “Large time and cost savings opportunities can be found in gaining back mere seconds in operations workflows.” Examples of how to achieve this include having workers take fewer steps, investing in faster label printing and quicker barcode label scanning and eliminating battery changes mid-shift.

Bruce Stubbs, Intermec Industry Marketing Director for Distribution Center Operations, said: “Warehouse managers are faced with significant cost saving challenges, which means they can’t afford to let such levels of time wastage continue. Businesses should be looking at every workflow in detail on a regular basis to claim back the minutes and seconds they need to achieve these savings. As this research shows, reviewing their technology infrastructure may be the perfect place to start.”

*Intermec research conducted by Vanson Bourne reveals that the average worker loses an average of more than 15 minutes a day / 58 hours a year / 8 working days year. Assuming a warehouse with a minimum of 50 warehouse workers, this equates to 2,899 hours a year.

For more information, visit www.intermec.com, or follow us at www.twitter.com/intermec or www.facebook.com/intermec.

About Intermec

Intermec Inc. (NYSE:IN) is the workflow performance company. We design the leading data capture and information management solutions at the interface between mobile workers, assets, and customers. For more information about Intermec, visit www.intermec.com or call 800-347-2636.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...