Subscribe to our free, weekly email newsletter!


2012 Warehouse/DC Operations Survey: Mixed signals

A record response reveals that readership is divided in terms of investment: one side remains cautious, while the other is on the verge of making significant changes to their warehouse/DC operations. How have your operations emerged from the Great Recession?
By Maida Napolitano, Contributing Editor
November 01, 2012

After years of slow economic progress, the results of Logistics Management’s (LM) 2012 Warehouse and Distribution Center (DC) Operations Survey show that there appears to be two schools of thought emerging from the ashes: There are those companies that remain cautious, staying conventional with minimal plans for expansion; and there are those on the verge of making significant investments and changes to their distribution operations.

Designed to gauge activities and trends in warehousing and DCs, our annual survey offers a first-hand look into the state of today’s DC and warehouse operations. In September, a survey questionnaire was sent via email invitation to LM readers. The survey gleaned 805 qualified responses (a new record for this survey) from upper-level managers to CEOs—all personally involved in decisions regarding their company’s warehouse and DC operations. 

Most participating companies came from manufacturing (44 percent), followed by distributors (28 percent), third party providers (9 percent) and retailers (8 percent). An assortment of products handled in the DC was once again well-represented with food and grocery leading the pack at 11 percent, followed by industrial/chemical at 10 percent, and electronics and building materials, tied for third, at 8 percent each. 

This year’s findings revealed mixed signals coming from opposite ends of the spectrum. About 52 percent of respondents are adopting a more cautious approach, spending less than $250,000 for warehousing equipment and technology in 2012.

image

About the Author

image
Maida Napolitano
Contributing Editor

Maida Napolitano has worked as a Senior Engineer for various consulting companies specializing in supply chain, logistics, and physical distribution since 1990. She’s is the principal author for the following publications: Using Modeling to Solve Warehousing Problems (WERC); Making the Move to Cross Docking (WERC); The Time, Space & Cost Guide to Better Warehouse Design (Distribution Group); and Pick This! A Compendium of Piece-Pick Process Alternatives (WERC). She has worked for clients in the food, health care, retail, chemical, manufacturing and cosmetics industries, primarily in the field of facility layout and planning, simulation, ergonomics, and statistic analysis. She holds BS and MS degrees in Industrial Engineering from the University of the Philippines and the New Jersey Institute of Technology, respectively. She can be reached at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA