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Hardcover, 576pp
Harvard Business Press, October 2008 (Updated and Expanded)
ISBN-13: 978-1422126967
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March 13, 2006

Increase Capacity, Not Space

By T. D. Clark

Supply chains are more streamlined and customers more demanding. So addressing the challenges of a leaner, meaner supply chain mostly means taking advantage of new technologies that increase warehouse and distribution capacity without increasing space.

Because the supply chain is becoming more streamlined, customers are becoming more demanding, forcing suppliers to deliver smaller amounts of product in a shorter timeframe. This process has the ability to wreak havoc on a company's materials handling protocol. Thankfully, it appears that manufacturers and tech vendors alike are trying to figure out the same things when it comes to addressing the challenges of a leaner, meaner supply chain. For the most part, this means taking advantage of new technologies that increase warehouse and distribution capacity without increasing space.

According to an article from Material Handling Management just last month, the average size of a new building six or seven years ago was around 150,000 square feet. Today that number has more than doubled to 375,000. The average clear height used to be around 28 ft. Now the average height ranges from 32-36 ft. The average facility size is even higher in core logistics hubs such as Atlanta, New Jersey, Dallas, Chicago, Los Angeles and San Francisco. The article notes that a one-million-square-foot building in these markets is not out of the norm either. A rather scary figure as it relates to New Jersey, a state already pressed for space when it comes to the shipping and receiving of goods.

Still, it requires mucho greenbacks to make buildings; and if you're a UK-based firm — look out, because building costs are even higher than that of the United States. Accountants and financial analysts agree that the total investment (per square foot) required to build a new facility in the United Kingdom is nearly double that of one in the U.S., says PSI Engineering, a provider of material handling and inline document automation solutions

To wit: As if sensing an up tick in demand for its solutions, PSI recently announced a partnership with Norpak Packaging Ltd. of the United Kingdom. Under the terms of the agreement, signed in Mississauga Ontario, Norpak will become the authorized agent of PSI's Industry First, automation solutions in the UK. The partnership will enable PSI and Norpak to further penetrate the United Kingdom's mail, catalog and internet order fulfillment markets with PSI's patented packaging automation solutions. PSI Engineering's automation solutions also increase order throughput, minimize bottlenecks, and reduce labor costs.

Back in the 'States, however, FKI Logistex also has a few design and interface options up its sleeve as it relates to a new space-saving product: the A-780. The A-780 utilizes high-level infeed and right-angle pattern formation to achieve outstanding pattern flexibility. Close-center rollers and a bi-parting apron also give the A-780 the ability to handle a wide variety of case and pallet sizes. Its compact footprint is ideal for existing facilities where space might be an issue. A re-circulating row pusher improves case flow and allows higher palletizing capacities with rates up to 45 case-feet per minute. Even more, the A-780 is RFID-enabled, giving it the ability to change patterns on the fly and to manage end-of-run clearing, tracking production and inventory information.

Another example is Remstar, which also offer products that create more floor space in the medical device sector. Medical device manufacturers and distributors realize floor space savings by utilizing otherwise-wasted vertical cube space. Remstar's vertical carousels are integrated to work in tandem with pick-to-light technology and inventory management software to allow easy batch picking, high-throughput and high-density distribution, and order picking operations.

Is space an issue for your facility? Ask yourself how your company can save space while boosting productivity.

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