It’s Time to Complete an Operations Assessment – When & Why It’s the Right Choice

Warehousing and distribution operations face constant pressures from the market to perform – whether it’s trending up or down. The industry has seen rapid change especially in the last few years; Labor costs are up over 30%, 60% more warehousing jobs are needed, fuel costs are up 50%, and industrial real estate costs are up 30%. With e-commerce growth continuing and the challenging macro-economic situation across the globe, the only constant for the supply chain industry will be change. Execution of your supply chain strategy hinges on being able to adapt and evolve your operation in conjunction with these market pressures.

An Operations Assessment is Key to Evolving an Operation

Most companies are investing heavily in their supply chains to combat these market pressures to increase capacity and reduce operating costs. Determining where to make the right investment is usually the most difficult question to answer.  Operational assessments allow organizations to review the people, the processes/systems, and the physical layout and design to identify what areas have the most opportunity, where the investments should be made, and how those changes need to occur. These assessments can help build a continuous improvement roadmap that includes both short term “just do it” projects and longer-term technology and automation initiatives that drive innovation to an operation. 

Are you not sure where to start? Have you recently implemented improvement initiatives and are looking for what’s next? An operations assessment is a great first step.

Why else may it make sense to pursue an operations assessment?

While looking at where and how to drive innovation is a common reason to engage with an assessment, there are several other situations that could trigger a need. 

  • Significant increase/decrease in volume or capacity – Increased or decreased volume can strain operations, indicating a need for innovation or adaptation to meet evolving demand.
  • Inventory, quality, or service challenges: Operational shortcomings often stem from opportunities within people, processes/systems, or physical design. Identifying and addressing the root cause is crucial, rather than merely treating the symptoms
  • Current contract or building lease is expiring:  Prior to committing to a long-term decision like real estate, understanding future operational needs is vital. The physical infrastructure should support company growth and remain adaptable to future innovations

 

Recent merger, acquisition, or new product line: Changes in business profiles necessitate new capabilities in systems, processes, or adjustments to physical design. Assessments become pivotal in aligning the operation with the evolving business landscape.

Make the Right Decision with Confidence

The need to make sound business decisions to evolve supply chain operations is more critical than ever. Using a fact-based data driven approach through an operations assessment will provide the needed confidence to execute on your initiatives. Leverage Connors Group’s expertise for your next operations assessment.

Explore Connors Group’s assessment options and complete the form to receive a self-diagnosis of your organization’s current condition.

To learn more about the Connors Group, please contact us at:

Connors Group connorsllc.com | info@connorsllc.com | 800.813.7028