Dave Gealey

Running Out of Room?

| Dave Gealey

A growing company running an undersize, suboptimal warehouse needs to embrace growth and resist the temptation to simply throw labor at the problem. There are already a plethora of pressures being put on the warehouse by the on-demand environment that has facilitated SKU proliferation, value-added services, and more customization. On the flip side, the procurement department is buying in bulk for cost savings, creating rising congestion, inefficiencies, and safety issues. As a result, accuracy and productivity levels decline. In the end, adding labor alone will simply increase labor costs and congestion with little to no productivity increases.