Top 3 Ways Warehouse Automation Can Achieve a Better Cost Per Case Shipped
Warehouse and supply chain executives are increasingly tasked to achieve a better cost per case shipped. Often the first place a warehouse operations manager will turn is to cost-cutting to improve warehouse efficiency. But trying to renegotiate shipping rates and using basic inventory management measures is not enough. It’s like the old saying about mending a broken leg with a BAND-AID® – it’s a well-intentioned but ill-conceived fix.
The best way to uncover hidden efficiencies to achieve a better cost per case shipped is through improved automated warehouse technology. Let’s take a look at the top 3 ways warehouse automation can help deliver a better bottom line to your warehouse operations.
1. Prevent Unplanned Downtime in Warehouse:
Did you know preventable unplanned downtime can equal $2,000 - $10,000 per hour lost?* Times that by an average of 50 hours per site per year and the loss is staggering. In addition to profitability taking a hit, unplanned downtime can cause a negative impact on customer relationships and your company’s reputation. Worker morale can also be impacted due to the less productive environment.
What are your options? With an automated warehouse technology solution like Honeywell Forge Performance+ for Distribution Centers, you can effectively tackle unplanned downtime, associated idle labor, throughput loss and energy spend.
The Honeywell Forge Performance+ detection system identifies impending issues, potential downtime and offers performance improvement opportunities. Corrective actions are recommended based on analytics which enables managers to plan for maintenance and repairs on a set schedule to minimize downtime and keep costs low.
(*Average results provided by distribution center customers prior to adopting Honeywell Forge Performance+ for Distribution Centers. This unplanned downtime number includes idle labor as well as shipment delays.)
2. Optimize Case Throughput in Warehousing:
Another way warehouse automation can help improve warehouse operations is by optimizing case throughput.
Speed and efficiency in processing, storing, and shipping products is the core necessity of a warehouse or distribution center. To get to optimal case throughput ask yourself: Is your system balanced for the best efficiency and does operations have real-time or historical visibility to key system performance metrics?
If your answer isn’t “yes,” then the result can be hundreds of hours of lost productivity due to a lack of real-time data, actionable insights and benchmarking for KPIs.**
The way to better meet promise dates and decrease cost per case shipped is by optimizing your warehouse efficiency, assets and processes with intelligent operations. Honeywell Forge Performance+ for Distribution Centers helps to optimize case throughput by unifying data sources and providing better analytics of this unified data set. In addition, Honeywell Forge Performance+ enables constant collaboration across operations and maintenance teams, so organizations can avoid unplanned downtime and improve the utilization of their systems in real time throughout the day.
(**Average results provided by distribution center customers prior to adopting Honeywell Forge Performance+ for Distribution Centers.)
3.Automate Legacy Processes
If you’ve been in business for more than a few years, you probably have some old technology and outdated methods in place (like manual data entry, tracking down employees to verbally assign tasks, and using different reporting systems then piecing metrics together). However, using an obsolete approach can make you less competitive, less efficient, and make employees less engaged.
Legacy processes in a warehouse can result in 1 to 3 hours a day spent collecting, entering and reporting data – not only is this lost time, but it also averages into a financial loss of about $40k per year.*** Plus, processes that aren’t automated can have a higher room for error.
Honeywell Forge Performance+ for Distribution Centers automatically collects and reports KPIs with improved accuracy and resolution. Additional outcomes of automated warehouse technology include reducing manual labor, speeding up processes and freeing employees to do higher-level tasks.
(***Average results provided by distribution center customers prior to adopting Honeywell Forge Performance+ for Distribution Centers.)
Honeywell Forge Performance+ for Distribution Centers
Warehouse automation, driven by a solution like Honeywell Forge Performance+ for Distribution Centers, enables intelligent operations for warehouses and helps distribution centers stay on plan amidst the chaos by orchestrating the multitude of assets, labor and inventory when unexpected spikes or failures occur.
Honeywell Forge Performance+ for Distribution Centers is an enterprise performance management solution that combines data from islands of automation and separate software tools. Providing consolidated performance metrics, actionable alerting, and smart decision-making recommendations.
Start optimizing your assets, workers and process to drive portfolio-wide savings across multiple operations. Learn more about Honeywell Forge Performance+ for Distribution Centers. Request a consultation.