A retail customer recently wondered whether his organization needed to review its LEAN warehouse and distribution strategy for the coming back-to-school and holiday shopping seasons. After all, systems were in place and all seemed to be running smoothly.
So a question was posed: Could the organization endure the margins lost by not preparing – especially if a breakdown meant the company failed to meet its peak season numbers?
From labor and material handling equipment (MHE) to space, safety and security, preparation is essential to ensuring success during the retail season.
With time on your side, review and refresh the following areas:
1. Labor needs. From permanent employees to temporary staffing, the labor pool must be brought up to speed with each new shopping season. For contingent workers, review resource planning, capacity needs and your LEAN overview with the temp service provider. Review and update onboarding and training programs. If possible, create fast-track training on core processes, like materials, stocking, and higher-level logistics. This will help ensure temp workers are trained, ingrained with your systems and culture, and familiar with the work environment. Before hiring, remember to make clear how long the peak season will last and what vacation black-out periods will apply over the holidays.
2. MHE condition and capacity. From the condition of the current fleet to expected needs for the coming season, a maintenance program combined with a utilization review will ensure you’re prepared. First, perform routine maintenance and repair on existing equipment. Stock common replacement parts on site, like vehicle tires, safety lights and horns, and battery connections. Should a lift truck break down, for example, the service tech will have the parts needed to expedite the repair. Did capacity grow this year over last? Will current equipment accommodate your needs? Using capacity modeling software, conduct a historic needs analysis to match actual growth and projected increases to MHE capacity.
3. Space utilization. The importance of well-used space during peak season cannot be over-emphasized. Perform a space Kaizen prior to season to optimize utilization, reduce cycle time and increase effective throughput. For example, top runners should be placed in a centralized area closest to the outbound dock to enhance speed-to-market. Review and perform a refresher on your 6S program (Safety, Sort, Set in order, Shine, Standardize, and Sustain). This will minimize unproductive time chasing the materials and tools needed. Did your capacity modeling indicate you will require more square footage this season? If so, review alternative space options within your operations and or secure an off-site or short-term location.
4. Safety programs. One preventable accident can bring the entire operation to a halt. This is especially important with the arrival of contingent workers unfamiliar with the facility, equipment and operations in plants that can easily double capacity and pace during peak season. Review and refresh safety protocols. Assign trusted “champions” to be your eyes and ears to spot problem areas, like drive aisles narrowed with excess product, or to direct personnel in case of emergency. Review key protocols, like shut down and emergency plans and evacuation routes, and perform mock emergency exercises.
5. Security. From a single laptop to a pallet of sentimental candles, the value of stolen goods not only can impact an organization’s bottom line. It can permanently spoil its reputation. Make it clear to staff and contingent workers alike that heightened security and surveillance are in effect during peak season. Screen employees. Install access controls. Regulate what’s allowed in the warehouse or what must be stored in the locker – like purses, lunch bags and cell phones.
The retail season can stretch even the best organizations at the seams. A LEAN refresher now can help ensure labor, MHE, space, safety and security are in peak running order during the peak shopping season.
Learn how to make your retail supply chain LEAN by downloading our most recent white paper: Eliminate Waste in Retail Supply Chains.
Authored by Tom Arnet
Tom Arnet has spent 18 years in the technology and retail industry, and today is a Director of Customer Logistics with Ryder System Inc., specializing in supply chain and logistics solutions for the technology, retail and consumer goods segments.
