2016 Warehouse/DC Operations Survey: Ready to Confront Complexity

Survey respondents indicate a desire to apply more IT solutions and keep up on capital expenditures as they confront complex issues like bigger facilities, labor issues, high SKU counts and the growing reality of omni-channel.

By ·
Download Article PDF

As it has the last few years, our “Annual Warehouse and Distribution Center (DC) Operations Survey” points to growing order fulfillment complexity, larger labor forces, and other challenges associated with e-commerce. However, the 2016 survey reflects an industry that’s not only well aware of these challenges, but one that’s poised and ready to do something about them.

From tweaking operational processes, to tapping labor as a means of flexing capacity, to incrementally applying more technology, the survey clearly indicates that respondents are in the midst of addressing omni-channel challenges. For example, capital expenditure (CapEx) levels have kept pace with CapEx growth seen in recent surveys, and workforce numbers held steady or grew among some respondents.

According to Donald J. Derewecki, a senior consultant with St. Onge Company, and Norm Saenz, Jr., a managing director with St. Onge Company, a supply chain engineering consulting company and SCMR’s partner for this annual research, a majority of the data points to an industry engaged in confronting omni-channel complexities.

“As operations requirements become more complex, companies in general seem to be coping,” says Derewecki. “E-commerce has been affecting nearly everything. Even companies that don’t directly participate in e-commerce now experience Amazon-type expectations from customers about rapid ordering and fulfillment. So the bar is set pretty high on requirements, and in response, the majority of respondents seem to be focused on improving their processes and the information systems support for those processes.”

SUBSCRIBERS: Click here to download PDF of the full article.

 


About the Author

Roberto Michel
Roberto Michel, an editor at large for Modern Materials Handling (MMH), has covered manufacturing and supply chain management trends since 1986, mainly as a former staff editor and former contributor at Manufacturing Business Technology. He has been a contributor to MMH since 2004. He has worked on numerous show dailies, including at ProMat, the North American Material Handling Logistics show, and National Manufacturing Week. He can be reached at [email protected]

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!

Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...