Improved Productivity Will Reveal Tangible Results
Your job as an entrepreneur is to simultaneously increase productivity and lower costs. If this were as easy to accomplish as it is to say, every business would be the size of Amazon and Apple.
Every company is unique, and there is no cookie cutter solution that fits every business. That’s why whenever GCB Solutions works with a new client, we perform an audit to figure out exactly what that specific company needs. However, throughout our 30 years of experience there are certain tweaks for improved productivity that come up again and again, and always see tangible results.
#1: Precisely Measure Packing Costs
John D. Rockefeller, the scion of Standard Oil, was once one of the richest men in America. He got there through hard work, a bit of luck and an incredible attention to detail. One day, when he was inspecting his warehouse, he noticed the workers were sealing each oil drum with 50 nails. He inquired if the lid on the oil drum would stay secure if they used only 45 nails. The workers tested this and found the lid leaked. They tried again with 46 nails, 47 nails and finally 48 nails and found that 48 nails was as effective as 50. From then on, all oil drums were sealed with 48 nails. This may seem like a trivial concern, but for an organization as large as Standard Oil saving two nails and two seconds per oil drum ultimately translated to hundreds of thousands of dollars in savings and increased efficiency.
When packaging a single item, small inefficiencies like how much tape or void fill is being used can go unnoticed. However, these tiny details can quickly pile up and actually be costing much more than you expect.
#2: Machines & Automation
No matter how fast and how precisely even the most skilled employee works, they simply can’t match the output of modern machines. For example: a standard pallet wrapper increases pallet-wrapping speed by nearly 70% on average. Every time a pallet is wrapped and sent from the warehouse that means you are saving on space costs and have room for more product.
It is advisable to perform an audit of your machine efficiency in order to ensure your warehouse is operating at an optimal level. Advances in artificial intelligence and even simple RFID codes can revolutionize your efficiency.
#3: Simplicity Wins Out
We talked about precisely measuring packaging above, but it is also important to remember that simplicity will lead to consistency, which in turn, will lead to efficiency. These two concepts work hand-in-hand, as finding the best packaging solution for all of your products, regardless of size, will save money on the front end with supplies and time on the back end when packing and shipping.
Similarly, machines can completely speed up your warehouse operations but they need an optimized workflow in order to unlock their full potential. A machine can wrap a pallet faster than a human, but they will require individual calibration to wrap different sized pallets one after the other. Crucially, simplifying your operations will make it easier to on load new employees and get them working at full speed as quickly as possible.
#4: Proper Communication
We talk a lot about how data points and advances in technology can increase efficiency at your company—this contemporary obsession with statistics even stretches to America’s pastime. However, there is no substitute for clear communication amongst your team.
An easy, often-overlooked way to make sure you are meeting performance goals every month is confirming every team member is aware of goal metrics. People appreciate knowing how they are performing; with positive reinforcement, top employees will continue to work hard and others will fix their weak spots. Checking in on and improving employee morale will result in massive dividends for the bottom line of your company.
GCB Solutions is here to guide you through the in’s and out’s of packaging from initial design to final delivery. Using a combination of technical know-how and the most up-to-date technology, GCB Solutions can improve efficiency at every step of the process and create your packaging for less money in less time.
Call us at (904) 263-2804 or schedule a free consultation, today!