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Industrial

Industry Dynamics

Industrial products companies face several challenges in their operations. SKU proliferation is a constant struggle as product lines advance and evolve. With many products manufactured overseas, industrial distributors also face inefficiencies in warehousing and inventory management due to fluctuating demand and supply chain disruptions. Rising competition and customer expectations is also creating a push for quicker delivery times, requiring the adoption of multi-channel distribution models and advanced logistics strategies.

While automation technologies typically help companies deal with issues such as SKU proliferation, increasing inventories and complex channel mix, it remains critically important to design systems with the right mix of flexibility and reliable performance. System failure at any point can lead to lost sales, unacceptable waste, and damaged trust. While each industry sub-group and individual company has a unique set of challenges and requirements, there are key challenges that are common across industrial distributors:

Common Industry Challenges

Expanding Product Assortment

Innovative new products are the lifeblood of many industrial distributors, but growing product categories and SKU assortments have multiple impacts on fulfillment processes. First, picking productivity slows as travel to the desired item is lengthened. Warehouse capacity and active pick locations are also stressed as items are added to the assortment. The problem is multiplied in many industrial settings, as new products frequently come with additional new SKUs for accessories and replacement parts.

Labor

Finding enough reliable labor is a universal challenge in today’s climate, but it can be even more difficult for industrial distributors that handle heavy and bulky items or have a high amount of palletizing and depalletizing.

The DLN team uses a proven engineering approach and the latest technology to develop creative yet pragmatic and justifiable solutions, despite the many challenges facing industrial distributors. We maintain a focus on flexibility and adaptability while planning for future expansion and growth.

Manufacturing

Common Industry Challenges

In addition to the general challenges faced by all industrial distributors, there are several additional challenges that are unique to manufacturers as they try to support the changing landscape of getting their products to end users.

Omnichannel Fulfillment

Most industrial product manufacturers can no longer have DCs and warehouses focused solely on bulk shipments to the DCs of distributors or large retailers. Today’s distribution landscape requires manufacturer DCs to support several other channels, which may include direct store delivery (DSD), company retail stores, and direct to consumer (DTC) shipments. Each has unique requirements and order profiles that are not supported well by DCs designed strictly for wholesale distribution.

Palletizing

Even as distribution becomes more omnichannel, the primary flow for manufacturers remains palletized wholesale orders. Unassisted manual palletizing is monotonous and physically demanding, with poor ergonomics. Today’s customers also want more frequent, smaller shipments to support lean principles, leading to more demand for mixed-SKU pallets that can’t be processed by legacy palletizers.

Storage Space

Most manufacturers prioritize investing in their products and manufacturing processes, and rightfully so! They also push to maximize production runs to boost efficiency and profits. The negative aspect of this focus is that investments in storage space are frequently neglected, forcing this limited space to be used very efficiently.

Returns and Repairs

Returns and repairs are increasingly completed by the product manufacturer in today’s retail landscape. To keep pace, manufacturing DCs need to have processes designed to get products returned to customers or inventory quickly and efficiently.

Solutions

Maximizing distribution efficiency with limited resources is key in industrial product manufacturing warehouses and DCs. Designing warehousing and distribution solutions that optimize those resources requires a design approach and technology toolset that is tuned to the unique needs of this industry segment.

Storage Density

Improving storage density can extend the life of existing DCs or reduce the cost of construction for greenfield sites. Enhance storage density with technologies like:

  • Pallet Flow or Push-Back Racking
  • Radio Shuttles
  • Unit Load AS/RS Cranes
  • 2D and 3D Pallet Shuttle Systems

Productivity Boosts for Fast-Moving Items

Industrial product manufacturers typically have a significant volume of fast-moving items that present a strong opportunity to improve productivity, safety and space utilization. Automation solutions geared to fast-moving items include:

  • Layer Picking
  • De-palletizing
  • Palletizing
  • Pallet Shuttle
  • Automated Guided Vehicles (AGVs)
  • AS/RS (Automated Storage and Retrieval Systems)

Robotics and Automation

Manufacturing environments typically present plentiful opportunities to apply robotics and other custom automation solutions to processes that are high-volume and repetitive, but also requiring specialization, flexibility and a high degree of quality and precision. DLN’s robotics engineers have successfully implemented dozens of custom solutions that have automated difficult and repetitive jobs, without using fixed automation that is difficult to adapt to changing requirements.

Electronics

Common Industry Challenges

In addition to the general challenges faced by all industrial distributors, there are several additional challenges that are unique to electronics manufacturers and distributors as they try to support the changing landscape of getting their products to end users.

Handling Characteristics

Electronics are more susceptible to damage than many other product categories. To prevent loss of high-value products, distribution systems need to be designed to ensure products are stored and transported through the system in ways that eliminate damage.

Security and Traceability

In many electronics distribution operations, quality standards or high-value goods require the use of sophisticated tracing systems that maintain the precise location of each individual item in the DC, as well as the ability to use and locate each item, at all times. Without the use of technology and automation, this can be a complex and time-consuming burden to DC operations.

Omnichannel Fulfillment

Most electronics companies can no longer have DCs and warehouses focused solely on bulk shipments to the DCs of distributors or large retailers. Today’s distribution landscape requires electronics DCs to support several other channels, which may include direct store delivery (DSD), company retail stores, and direct to consumer (DTC) shipments. Each has unique requirements and order profiles that are not supported well by DCs designed strictly for wholesale distribution.

Solutions

DLN helps electronics distributors deal with the complexities of their industry by developing a deep understanding of the unique requirements of their operation, applying a proven design process and industry experience, and selecting from proven technologies that help distributors address their challenges. Solutions that are frequently beneficial to electronics distributors include

Goods to Person (GTP)

Goods-to-person technology enhances accuracy and efficiency by storing items in totes and bringing them out as needed for each order. They facilitate highly productive picking while transporting items gently and storing them in a secure environment. And they have the capability to bring the exact item specified by the software system to ensure compliance with traceability requirements.

Software

The right software package, when thoughtfully designed and integrated, can be an integral part of efficiently ensuring compliance with traceability requirements.

Advanced Sorting and Conveyance

The ability to select the right combination of conveyors and control systems to ensure products are safely and accurately routed through the process is key to electronics distribution.

Order Picking Technology

For applications where GTP is not a fit, there are several technologies that can be applied to increase the accuracy and efficiency of manual pick systems, including Voice Pick systems, Pick-to-Light and RF Scanning.

Industrial Products Distribution

Common Industry Challenges

Whether wholesale, retail or DTC oriented, industrial products distributors face several additional challenges that are unique to this market segment.

Extreme Assortments

Assortment is a key competitive focus for many industrial products distributors, who hope to become the one-stop-shop for their customers. Carrying a wide range of products from a wide range of companies results in some of the largest and most varied assortments in the entire distribution industry, straining both storage and picking efficiency.

Focus on Speed

Industrial customers don’t have time to wait for items that are critical to keeping their business running. Fulfillment speed is another critical competitive factor, as the purchase decision is frequently driven by speed rather than price.

Omnichannel Fulfillment

Most industrial products distributors have been challenged to expand their sales reach by serving channels beyond their native channel. Especially in cases where DCs were designed for single channel fulfillment, the differences in order characteristics can strain DC operations and impact efficiency.

Solutions

DLN helps industrial products distributors build competitive advantage in their industry by applying extensive experience and a proven design process. Solutions that are frequently beneficial to industrial products distributors include:

Engineering Studies

High performance distribution centers start with designs that are custom developed around a clear set of strategic objectives and leveraging the best-fit technologies on the market.

Goods to Person (GTP)

Goods-to-person technology enhances fulfillment speed, accuracy and efficiency by storing items in totes and bringing them out as needed for each order. They facilitate highly productive picking to facilitate short cycle times and responsive fulfillment.

Software

High-speed fulfillment with large assortments requires orchestrating multiple DC resources to act simultaneously with speed and precision. The right software package can coordinate picking and shipping efforts for maximum speed and flexibility to prioritize critical orders to ensure deadlines are met.

Order Picking Technology

For applications where GTP is not a fit, there are several technologies that can be applied to increase the speed and accuracy of manual pick systems, including Voice Pick systems, Pick-to-Light and RF Scanning.

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