webcast event

Tuesday, November 3o • 2:00 Pm eT

regisTer: www.logisticsmgmt.com/wdcbenchmark2010 Figure 1A: Profile of Today’s Distribution Network
Buildings in distribution network Size of network in square feet

1 building 30% 2M+ 12%

1M to 1.99M 7%
2 buildings 20% 500K to 999K 11%
2010 Warehouse/DC BenChmark stuDy

Brighter days ahead

250K to 499K 15%
3 building 12% 100K to 249K 21%
50K to 99K 14%
More than 3 buildings 38%
<50K 21%
TYPICAL PROFILE: Distribution network made up of more TYPICAL PROFILE: Total area of network: Less than
than 3 buildings 249,999 square feet

Most common clear height in feet

(for more than 3 buildings in network) Company description

Over 50 feet 10% Manufacturing 40%

40 to 49 feet 11% Distributor 25%

By Maida NapolitaNo, Contributing Editor 30 to 39 feet 31% 3PL 14%

our 5th annual survey
reveals that inventory
turns have increased, more
expansions are on the books,
T
20 to 29 feet 39% Retailer 9%
hings are finally looking up. In fact, the results of
Logistics Management’s 5th Annual Warehouse & <20 feet Other
9% 11%
Distribution Center (DC) Operations Survey are
showing clear signs of recovery. Inventory turns have TYPICAL PROFILE: Most common clear height: 20 to 29 feet TYPICAL PROFILE: DC supports a manufacturer
increased after three years of continued decline; Source: Peerless Media Research Group
companies report that more expansions are being
planned to distribution operations; and more managers are telling
us that they’re re-installing incentive plans as company coffers are Figure 1B: Profile of Today’s Distribution Network
starting to slowly, but surely show signs of new life.
Designed to gauge activities and trends in U.S.-operated ware- Area of service Number of employees
houses and DCs, our annual survey investigates how today’s man-
agers are currently running their distribution operation. In Sep-
Global 31% 300 or more 28%

and incentive programs are tember 2010, a survey was sent via email invitation to Logistics Entire U.S. 25% 200 to 299 10%
Management (LM) subscribers. A total of 521 qualified responses Multi-state region 22% 100 to 199 12%
finally being dusted off. it’s were received from CEOs to upper-level logistics and supply chain
managers who are personally involved in decisions regarding their Single metro area 13% 50 to 99 11%
time to dive into the results
company’s warehouse and DC operations. Western hemisphere 4% 25 to 49 15%
to see how your warehouse Most participating companies came from the manufacturing sec-
tor (40 percent), followed by distributors (25 percent), third-party “Half” of the U.S. 3% Less than 25 25%
and dC operations stack providers (14 percent), and retailers (9 percent). A wide assortment TYPICAL PROFILE: Global area of service TYPICAL PROFILE: Total people employed: 300 or more
up to some of the top of products handled in the DC was once again well represented,
with food and grocery leading the pack at 15 percent, followed
organizations in the country. closely by general merchandise at 11 percent, industrial/chemical Number of SKUs Annual inventory turns
at 9 percent, and electronics at 8 percent.
In an economic recovery tempered by a lack of consumer con- > than 75,000 9% 24 or greater 9%
fidence and spending, how have managers responded? Most are 50,000 to 74,000 3% 18.0 to 23.9 2%
sticking with conventional, low-cost, tried-and-true solutions for 20,000 to 49,999 9% 12.0 to 17.9 10%
their distribution problems. To realize transportation savings, many 10,000 to 19,999 9%
9.0 to 11.9 8%
are adding satellite DCs and renegotiating freight rates. And to keep 5,000 to 9,999 13%
7.0 to 8.9 11%
a lid on operational costs, a majority of respondents are improving 2,500 to 4,999 12%
1,000 to 2,499 12% 5.0 to 6.9 19%
warehouse processes, tightening inventory controls, and adopting
500 to 999 8% 3.0 to 4.9 27%
“lean and green” strategies.
100 to 499 12% 1.0 to 2.9 13%
Over the next few pages, we’ll share all of the detailed results on
99 or less 12% Less than 1.0 2%
how warehouse and DC operations have changed over the past year.
TYPICAL PROFILE: Number of SKUs: 5,000 to 9,999 TYPICAL PROFILE: Annual inventory turns: 3 to 4.9
Source: Peerless Media Research Group

42 LogistiCs ManagEM En t WWW.LO G I STI C S M G MT.C O M | november 2010 november 2010 | WWW.LO G I STI C S M G MT.C O M L ogi s t i Cs ManagEMEnt 43
 webcast event
Tuesday, November 3o • 2:00 Pm eT
regisTer: www.logisticsmgmt.com/wdcbenchmark2010 Figure 1A: Profile of Today’s Distribution Network
Buildings in distribution network Size of network in square feet

1 building 30% 2M+ 12%

1M to 1.99M 7%
2 buildings 20% 500K to 999K 11%
2010 Warehouse/DC BenChmark stuDy

Brighter days ahead

250K to 499K 15%
3 building 12% 100K to 249K 21%
50K to 99K 14%
More than 3 buildings 38%
<50K 21%
TYPICAL PROFILE: Distribution network made up of more TYPICAL PROFILE: Total area of network: Less than
than 3 buildings 249,999 square feet

Most common clear height in feet

(for more than 3 buildings in network) Company description

Over 50 feet 10% Manufacturing 40%

40 to 49 feet 11% Distributor 25%

By Maida NapolitaNo, Contributing Editor 30 to 39 feet 31% 3PL 14%

our 5th annual survey
reveals that inventory
turns have increased, more
expansions are on the books,
T
20 to 29 feet 39% Retailer 9%
hings are finally looking up. In fact, the results of
Logistics Management’s 5th Annual Warehouse & <20 feet Other
9% 11%
Distribution Center (DC) Operations Survey are
showing clear signs of recovery. Inventory turns have TYPICAL PROFILE: Most common clear height: 20 to 29 feet TYPICAL PROFILE: DC supports a manufacturer
increased after three years of continued decline; Source: Peerless Media Research Group
companies report that more expansions are being
planned to distribution operations; and more managers are telling
us that they’re re-installing incentive plans as company coffers are Figure 1B: Profile of Today’s Distribution Network
starting to slowly, but surely show signs of new life.
Designed to gauge activities and trends in U.S.-operated ware- Area of service Number of employees
houses and DCs, our annual survey investigates how today’s man-
agers are currently running their distribution operation. In Sep-
Global 31% 300 or more 28%

and incentive programs are tember 2010, a survey was sent via email invitation to Logistics Entire U.S. 25% 200 to 299 10%
Management (LM) subscribers. A total of 521 qualified responses Multi-state region 22% 100 to 199 12%
finally being dusted off. it’s were received from CEOs to upper-level logistics and supply chain
managers who are personally involved in decisions regarding their Single metro area 13% 50 to 99 11%
time to dive into the results
company’s warehouse and DC operations. Western hemisphere 4% 25 to 49 15%
to see how your warehouse Most participating companies came from the manufacturing sec-
tor (40 percent), followed by distributors (25 percent), third-party “Half” of the U.S. 3% Less than 25 25%
and dC operations stack providers (14 percent), and retailers (9 percent). A wide assortment TYPICAL PROFILE: Global area of service TYPICAL PROFILE: Total people employed: 300 or more
up to some of the top of products handled in the DC was once again well represented,
with food and grocery leading the pack at 15 percent, followed
organizations in the country. closely by general merchandise at 11 percent, industrial/chemical Number of SKUs Annual inventory turns
at 9 percent, and electronics at 8 percent.
In an economic recovery tempered by a lack of consumer con- > than 75,000 9% 24 or greater 9%
fidence and spending, how have managers responded? Most are 50,000 to 74,000 3% 18.0 to 23.9 2%
sticking with conventional, low-cost, tried-and-true solutions for 20,000 to 49,999 9% 12.0 to 17.9 10%
their distribution problems. To realize transportation savings, many 10,000 to 19,999 9%
9.0 to 11.9 8%
are adding satellite DCs and renegotiating freight rates. And to keep 5,000 to 9,999 13%
7.0 to 8.9 11%
a lid on operational costs, a majority of respondents are improving 2,500 to 4,999 12%
1,000 to 2,499 12% 5.0 to 6.9 19%
warehouse processes, tightening inventory controls, and adopting
500 to 999 8% 3.0 to 4.9 27%
“lean and green” strategies.
100 to 499 12% 1.0 to 2.9 13%
Over the next few pages, we’ll share all of the detailed results on
99 or less 12% Less than 1.0 2%
how warehouse and DC operations have changed over the past year.
TYPICAL PROFILE: Number of SKUs: 5,000 to 9,999 TYPICAL PROFILE: Annual inventory turns: 3 to 4.9
Source: Peerless Media Research Group

42 LogistiCs ManagEM En t WWW.LO G I STI C S M G MT.C O M | november 2010 november 2010 | WWW.LO G I STI C S M G MT.C O M L ogi s t i Cs ManagEMEnt 43
 2010 Warehouse/DC BenChmark stuDy

And with yet another year of results in can bring high-value savings through pen every day, a hundred times a day. “If
our database, definitive trends in ware- the elimination of waste in the supply you can save seconds here and there,
housing and supply chain management chain. that translates into real dollars without
over the past five years can now be iden- Within the four walls, we asked making a million dollar investment.”
tified. It’s time to dive into the results to how they’ve been keeping operational To reduce transportation costs,
see how your warehouse and DC opera- costs manageable. Seventy-two percent over 60 percent of respondents have
tions stack up to some of the top organi- of respondents say they are “improv- re-negotiated freight rates—a task
zations in the country. ing warehouse processes” (Figure 4, Sorensen believes companies should
page 46). “The cheapest thing to fix in be doing regularly—especially when
Clear treNds your warehouse is your processes,” says implementing any sort of changes such
One of the clearest trends that Saenz. Sorensen agrees and suggests you as opening satellite facilities or reduc-
we’ve seen unfold over the past several start by looking at those steps that hap- ing truckloads (Figure 5, page 46). “In
years is an increase in the number of
DCs that make up today’s distribution
networks (Figure 2). The number of
Figure 2: Increase in multi-building networks
networks with more than three DCs from 2007 to 2010
increased from 33 percent in 2007 to
Trend towards multi-
38 percent in 2010. Departure from one- building networks
On the flip side, one-facility net- building networks
works are decreasing—from 39 percent 40% 39% 38%
in 2007 to 30 percent in 2010. “There’s
a trend to move away from a single dis- 33%
30%
tribution point to multiple points closer
to your customer base,” says Derek
Sorensen, senior consultant for Tran-
Systems, a supply chain consulting firm 20%
and LM’s partner for this survey. “Not
only does this move help achieve higher
customer service levels in a competitive
market, but it also helps to cut down on
transportation dollars.”
Norm Saenz, an assistant vice presi- 0
dent with TranSystems, agrees with One building Two buildings Three buildings More than
Sorensen’s assessment, but also points three buildings
to another phenomenon that’s enabling
this trend. “While there are companies 2007 2008 2009 2010
looking to add DCs, other companies
are consolidating and closing facilities Source: Peerless Media Research Group
to reduce operating costs,” says Saenz.
“And as a result, there’s plenty of avail-
able, inexpensive warehouse space in Figure 3: Warehouse management
the real estate market today.” He adds systems in use
that many companies are taking advan- About 1-out-of-5 distribution
Increasing centers are still not using
tage of this availability to add satellite use of ERP any form of warehouse
facilities for temporary, seasonal stor- 32% as WMS management system
age, and perhaps relieve storage issues 30% 30% 30%
28%
in their main DCs. 25%
Another clear trend has been the 21% 21%
18% 19%
continued “leaning” of the supply chain 16% 17%
as more respondents implemented this
strategy—from 39 percent in 2009 to
44 percent in 2010. Why does “lean” 5% 4% 5%
remain so popular? According to Saenz,
Full-featured Basic WMS ERP used as Labor planning None or
lean has had considerable and proven WMS functions WMS functionality minimal
success in manufacturing; and as a
result, it’s quickly making its way into 2008 2009 2010
warehousing and distribution opera-
Source: Peerless Media Research Group
tions. It’s also a low-cost approach that

44 LogistiCs ManagEM En t WWW.LO G I STI C S M G MT.C O M | november 2010

 2010 Warehouse/DC BenChmark stuDy
Figure 4: Actions taken to lower operating costs
Taken any action (NET)
Improving warehouse processes
Improving inventory control
Changing rack/layout configuration
Reducing staff
Improving information technology
Consolidating/closing warehouses
Re-negotiating leases
Using 3PL
Other
Source: Peerless Media Research Group
Figure 5: Actions taken to lower
transportation costs
Taken any action (NET)
Re-negotiating freight rates
Shifting the mix of
common/contract carriers
Re-routing trucks/Using TMS
Request customer to order less
often, in larger quantities
Using more rail including
piggyback/ TOFC/ COFC
More local/regional sources
Using 3PL warehouses
Change inbound/
outbound ports
Collaborate with companies
closer to customer
Adding internal with houses
closer to customer
Other
Source: Peerless Media Research Group
46 LogistiCs ManagEM En t
such a dynamic business, you would
want to stay as current and as up-to-
97% date with your carriers as possible,” he
says.
72% “Green” initiatives remain a popular
choice with 92 percent of respondents
65%
having implemented some kind of envi-
43% Easy, low-cost
ronmental initiative (Figure 6). While
methods to lower recycling remains at the top of the initia-
36% operating costs tives list, there’s a considerable increase
36% in facilities that have implemented
“lighting fixtures and/or controls (53 per-
29% cent in 2009 to 66 percent in 2010).”
“These lights not only use less energy,”
20%
says Saenz, “but combined with motion
sensors they turn off when they’re not
15%
needed.” Benefiting the environment
3%
might be great, but Saenz believes it is
cost and utility savings that are driving
the adoption of these initiatives.
the 2010 dC Network
While the number of buildings may
have increased, other properties of the
distribution network have stayed essen-
89% tially the same (Figure 1A and 1B, page
43). Typical building size remains in
the range between 100,000 to 249,999
66%
square feet with clear heights of 20 to
29 feet.
28% Fifty-six percent of respondents
report that they’re handling less
than 5,000 SKUs, but the over-
24% all mean of total SKUs continues to
increase—14,600 in 2009 to 15,315
in 2010 (Figure 7). Saenz believes this
17%
SKU proliferation is a marketing push,
not logistics. “It’s marketing looking for
the magic bullet trying to figure out
16%
the next best thing, trying to be com-
15% “if you can save petitive, trying to get sales up,” he says.
Sorensen agrees: “I doubt there are
seconds here warehouse managers who want more
items, more SKUs in their DCs.”
13% and there, that This year, inventory turns are finally
translates into real on the upswing, with managers keep-
9% ing less on hand (Figure 7). While
dollars without increased demand from a recovering
9% making a million economy is partly the cause, Sorensen
also speculates that managers may have
dollar investment.” gotten better at modifying their buying
inventory practices to better match the
8%
— Derek Sorensen, landscape of the new demand that’s out
there.
Senior Consultant,
5%
TranSystems the Nature of operatioNs
The use of the DC for value-added
services continues to be a common
WWW.LO G I STI C S M G MT.C O M | november 2010
2010 Warehouse/DC BenChmark stuDy
Figure 6: Environmental initiatives implemented
At least one green initiative (NET)
Recycling
Lighting fixtures and/or controls
Fans to circulate cool or warm air
Packaging and/or packing materials
Reusable shipping containers
Metal and/or plastic pallets
Water run-off controls
Upgraded insulation
Solar panels
LEED certification for new buildings
Other
Source: Peerless Media Research Group
occurrence. Eighty-three percent of
respondents report doing some kind of
special labeling (54 percent), promo-
tional packing (33 percent), and kitting
for production (29 percent). There’s a
marked increase in the deferred cus-
tomization of products from 3 percent
in 2009 to 13 percent in 2010.
“By deferring customization, you’re
letting your customer specify exactly
what they want,” says Saenz, “rather
than building up inventory of items you
hope they’re going to buy.”
Figure 7: Distribution
center size and scope
trends Annual
inventory
turns
(mean)
# of SKUs
(mean)
2007 9.8 12,500
2008 8.7 14,800
2009 8.0 14,599
2010 8.4 15,315
Source: Peerless Media Research Group
november 2010 | WWW.LO G I STI C S M G MT.C O M
teChNology doldruMs
Despite a plethora of new tech-
90% nology, today’s DC remains a con-
92%
ventional, paper-based, single-order
75% pick operation. This year there’s
72%
even more conventional, paper-based
53% Biggest
66% jump
picking. In addition, 19 percent of
warehouses still have no warehouse
48% management system (WMS) of any
44%
kind (Figure 3, page 44).
44%
42% “Obviously, people are investing less
in automation because of the economy,”
37%
37% says Saenz. “But the more shocking sta-
14%
tistic to me is the fact that paper-based
is still so high…and I’m wondering why
15%
15% voice is so low when manufacturing
12% and grocery is our highest percentage of
12% respondents.” Grocery, with its full case
12% picking nature, can benefit greatly from
3% voice technology as it keeps workers
7% hands free as they assemble cases on a
4% pallet for an order.
5% 2009 Sorensen points out another inter-
2% 2010 esting trend on picking technologies
2%
(Figure 8). Radio frequency, voice, and
light-directed picking with no scan veri-
fication have all grown slightly in the
past year while RF-assisted picking with
The tide has also turned with the giv- scanning has taken a tumble from 43
ing of incentives (63 percent, up from percent in 2009 to 37 percent in 2010.
60 percent last year). Sorensen believes “Individually, I don’t know if we
incentive programs are how manag- can draw a definitive conclusion, but
ers squeeze the last bit of juice from there’s something with those three
a smaller workforce. “People want to moving together,” says Sorensen. “Per-
maintain the workforce they currently haps people are getting comfortable
have because of the efficiencies that with their quality control initiatives and
come with that educated work force.” their order accuracies and are cutting
Figure 8: Picking technologies In use
Paper-based 60%
43%
64%
RF assisted with scan verification
37%
Light assisted with scan verification 15%
18%
Light assisted with no scanning 5%
6%
Voice assisted with scan verification 4%
5%
2009
2010
RF assisted with no scanning 4%
5%
3%
Voice assisted with no scanning
5%
Other 1%
2%
Source: Peerless Media Research Group
L ogi s t i Cs ManagEMEnt 47
 2010 Warehouse/DC BenChmark stuDy
Figure 4: Actions taken to lower operating costs
Taken any action (NET)
Improving warehouse processes
Improving inventory control
Changing rack/layout configuration
Reducing staff
Improving information technology
Consolidating/closing warehouses
Re-negotiating leases
Using 3PL
Other
Source: Peerless Media Research Group
Figure 5: Actions taken to lower
transportation costs
Taken any action (NET)
Re-negotiating freight rates
Shifting the mix of
common/contract carriers
Re-routing trucks/Using TMS
Request customer to order less
often, in larger quantities
Using more rail including
piggyback/ TOFC/ COFC
More local/regional sources
Using 3PL warehouses
Change inbound/
outbound ports
Collaborate with companies
closer to customer
Adding internal with houses
closer to customer
Other
Source: Peerless Media Research Group
46 LogistiCs ManagEM En t
such a dynamic business, you would
want to stay as current and as up-to-
97% date with your carriers as possible,” he
says.
72% “Green” initiatives remain a popular
choice with 92 percent of respondents
65%
having implemented some kind of envi-
43% Easy, low-cost
ronmental initiative (Figure 6). While
methods to lower recycling remains at the top of the initia-
36% operating costs tives list, there’s a considerable increase
36% in facilities that have implemented
“lighting fixtures and/or controls (53 per-
29% cent in 2009 to 66 percent in 2010).”
“These lights not only use less energy,”
20%
says Saenz, “but combined with motion
sensors they turn off when they’re not
15%
needed.” Benefiting the environment
3%
might be great, but Saenz believes it is
cost and utility savings that are driving
the adoption of these initiatives.
the 2010 dC Network
While the number of buildings may
have increased, other properties of the
distribution network have stayed essen-
89% tially the same (Figure 1A and 1B, page
43). Typical building size remains in
the range between 100,000 to 249,999
66%
square feet with clear heights of 20 to
29 feet.
28% Fifty-six percent of respondents
report that they’re handling less
than 5,000 SKUs, but the over-
24% all mean of total SKUs continues to
increase—14,600 in 2009 to 15,315
in 2010 (Figure 7). Saenz believes this
17%
SKU proliferation is a marketing push,
not logistics. “It’s marketing looking for
the magic bullet trying to figure out
16%
the next best thing, trying to be com-
15% “if you can save petitive, trying to get sales up,” he says.
Sorensen agrees: “I doubt there are
seconds here warehouse managers who want more
items, more SKUs in their DCs.”
13% and there, that This year, inventory turns are finally
translates into real on the upswing, with managers keep-
9% ing less on hand (Figure 7). While
dollars without increased demand from a recovering
9% making a million economy is partly the cause, Sorensen
also speculates that managers may have
dollar investment.” gotten better at modifying their buying
inventory practices to better match the
8%
— Derek Sorensen, landscape of the new demand that’s out
there.
Senior Consultant,
5%
TranSystems the Nature of operatioNs
The use of the DC for value-added
services continues to be a common
WWW.LO G I STI C S M G MT.C O M | november 2010
2010 Warehouse/DC BenChmark stuDy
Figure 6: Environmental initiatives implemented
At least one green initiative (NET)
Recycling
Lighting fixtures and/or controls
Fans to circulate cool or warm air
Packaging and/or packing materials
Reusable shipping containers
Metal and/or plastic pallets
Water run-off controls
Upgraded insulation
Solar panels
LEED certification for new buildings
Other
Source: Peerless Media Research Group
occurrence. Eighty-three percent of
respondents report doing some kind of
special labeling (54 percent), promo-
tional packing (33 percent), and kitting
for production (29 percent). There’s a
marked increase in the deferred cus-
tomization of products from 3 percent
in 2009 to 13 percent in 2010.
“By deferring customization, you’re
letting your customer specify exactly
what they want,” says Saenz, “rather
than building up inventory of items you
hope they’re going to buy.”
Figure 7: Distribution
center size and scope
trends Annual
inventory
turns
(mean)
# of SKUs
(mean)
2007 9.8 12,500
2008 8.7 14,800
2009 8.0 14,599
2010 8.4 15,315
Source: Peerless Media Research Group
november 2010 | WWW.LO G I STI C S M G MT.C O M
teChNology doldruMs
Despite a plethora of new tech-
90% nology, today’s DC remains a con-
92%
ventional, paper-based, single-order
75% pick operation. This year there’s
72%
even more conventional, paper-based
53% Biggest
66% jump
picking. In addition, 19 percent of
warehouses still have no warehouse
48% management system (WMS) of any
44%
kind (Figure 3, page 44).
44%
42% “Obviously, people are investing less
in automation because of the economy,”
37%
37% says Saenz. “But the more shocking sta-
14%
tistic to me is the fact that paper-based
is still so high…and I’m wondering why
15%
15% voice is so low when manufacturing
12% and grocery is our highest percentage of
12% respondents.” Grocery, with its full case
12% picking nature, can benefit greatly from
3% voice technology as it keeps workers
7% hands free as they assemble cases on a
4% pallet for an order.
5% 2009 Sorensen points out another inter-
2% 2010 esting trend on picking technologies
2%
(Figure 8). Radio frequency, voice, and
light-directed picking with no scan veri-
fication have all grown slightly in the
past year while RF-assisted picking with
The tide has also turned with the giv- scanning has taken a tumble from 43
ing of incentives (63 percent, up from percent in 2009 to 37 percent in 2010.
60 percent last year). Sorensen believes “Individually, I don’t know if we
incentive programs are how manag- can draw a definitive conclusion, but
ers squeeze the last bit of juice from there’s something with those three
a smaller workforce. “People want to moving together,” says Sorensen. “Per-
maintain the workforce they currently haps people are getting comfortable
have because of the efficiencies that with their quality control initiatives and
come with that educated work force.” their order accuracies and are cutting
Figure 8: Picking technologies In use
Paper-based 60%
43%
64%
RF assisted with scan verification
37%
Light assisted with scan verification 15%
18%
Light assisted with no scanning 5%
6%
Voice assisted with scan verification 4%
5%
2009
2010
RF assisted with no scanning 4%
5%
3%
Voice assisted with no scanning
5%
Other 1%
2%
Source: Peerless Media Research Group
L ogi s t i Cs ManagEMEnt 47
 2010 Warehouse/DC BenChmark stuDy

out some of these double checks as a
cost initiative to get more productiv-
ity out of their workers by eliminating
the need to scan—having them do one
less step.”
From a WMS standpoint, another
interesting trend is emerging. More
companies are using their ERP as a
WMS. Saenz sees this first hand. “A lot
A Mobile Powered
Printer / PC Cart
of companies are taking their entire ERP
system and using it for everything,” he
says. “I’m not surprised at all…not that
I agree that it’s the right route. I believe
the best-of-breed WMS are still much
better.” He speculates that ease of inte-
gration and the apparent cost control of
having just one package are the top two
reasons for this trend.
SIGNIFICANT
lookiNg ahead
There is no clearer sign for economic
recovery than the increased plans for
expansion (Figure 9). Thirty-nine percent
of respondents report that they are planning
on expanding in the next 12 months—that’s
up from 33 percent last year.
Although most are expanding by
increasing number of SKUs (54 per-
cent) and the overall square footage (53
percent), the biggest percentage jump
from last year is the “number of build-
ings,” up 48 percent from 41 percent in
2009. “All these things are often inter-
related,” says Sorensen. “Additional
building space may be needed to deal
with the purchasing department’s move
to buy large quantities at a discounted
rate or with corporate management
who’s in the middle of an acquisition
and needing space for additional SKUs.
Either way, it’s best to look at the big
picture and be set up as best as you can

= LABOR to weather the storm.” M

Maida Napolitano is a Contributing

Editor to Logistics Management

SAVINGS Figure 9: Likelihood

of expansion in
the next 12 months
Planning to expand over
next 12 months
THAT'S RIGHT. A mobile powered cart by Newcastle Systems
equals significant labor savings in your warehouse or DC. No
61%

HOW? Newcastle Systems' mobile cart is

integrated with its own long-life battery
Yes
power supply. 39%*

Eliminate walking back & forth to fixed

*Up from 33% in 2009
printers and other hardware - thereby
IMPROVING PRODUCTIVITY Planned areas of expansion
Number of SKUs 54%
Keep powered equipment within arms reach
Overall square footage 53%
ANYWHERE throughout your facility
Number of buildings 48%
Proven Applications Include: Number of employees 47%
 Mobile On-Demand Label Printing Area of service 38%
cart Typically
 Warehouse Inventory & Cycle Counting Annual inventory turns 28%
pays for itself
 Shipping/Receiving & Cross Docking Height of buildings
in < 4 months! 11%
Other 8%
READY TO SAVE? Visit www.newcastlesys.com Source: Peerless Media Research Group

or call 781.935.3450