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  Best Practices: Logistics: Use Barcode/Material Handling Technology
Commentary


Technology keeps getting more powerful and less expensive. This represent a winning combination for reducing costs and improving quality in the warehouse. Bar code systems are readily available. They not only increase labor productivity they also greatly improve accuracy. Automated storage and retrieval systems are expensive but for high volume operations especially in high labor cost environments provide a desirable return on investment.

Two cautions. First, these systems require a lot of effort to implement and startup can range from challenging to down right disastrous. Second, it is easy to become enamored with glitzy technology. Do your homework. Complete a realistic investment analysis focused on hard dollar savings. Also, check references. Go see the system up and running before you sign on the dotted line!


Best Practice | Case Study | Commentary



April 9, 2000
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