Challenge: How will you deliver to your customers better, faster, cheaper than Amazon in 2020?
When Jeff Bezos entered the new world of E-commerce, he believed that he was entering unchartered territory. When he opened his first fulfillment center the world was waiting for 6-8 weeks for delivery and paid the mysterious “shipping and handling charges”. The fulfillment centers worked in response to catalog orders at late-night TV advertising. Much of the supply chain moved pallets and full cases through Distribution Centers (DC). 2020 marks the 25th anniversary of when Bezos sold his first book online, Douglas Hofstadter‘s Fluid Concepts and Creative Analogies. Fulfillment centers would never be the same and distribution itself would be forever transformed.
Direct to Retail Outlets and Distributors
Distribution Centers spend their time receiving and shipping pallets and cases to retail locations for sale. The goal is to handle products as little as possible, especially when supplying the original distribution to the retail stores. As the product was sold within stores a replenishment order was required of the DC. These replenishments more closely resemble the work of a fulfillment center. This work is labor-intensive and the cost per unit increases quickly. Who operates DC’s in 2019? Common businesses that operate DC’s are supermarkets, wholesalers, and manufacturers but even this is changing.
No longer just an online bookstore, the rise of Amazon has changed the way the world shops for everything. The Amazon Fulfillment concept has set the standard. The “each pick” becomes the norm. The challenges that face thousands of retailers today are countless. Amazon’s “no regrets” approach has forced traditional retailers like Walmart, Nordstrom, and Macy’s to spend heavily to offer their products online. The consumer is equally likely to purchase on-line as they are to go to a store. Many of the great minds that streamlined the DC’s have had to rethink everything. The ideas of same-day shipping, free shipping, and subscription-based business models are here to stay. Not convinced? Walmart is on pace to grow their on-line business by over 30% for 2019.
Omni-Channel
The idea that you can do both within one facility is a challenge. The investment in “process”, software, skilled management team and staff is required. Forward-thinking has allowed traditional retailers to leverage their network of stores to act as fulfillment centers. Walmart and Target are offering more SKU’s for free same-day and next day shipping than any other competitors to Amazon.
The pressure to compete is tremendous. Rising labor costs and scarcity of labor within the US add to the challenges. Margins are impacted by the absorption of shipping costs. Deliver better, faster and cheaper will always be a challenge.
ABCO Systems provides both startups and established “brick and mortar” retail with insights into industry trends and provides solutions that reduce costs and improves shipping times. Contact us today to have an ABCO engineer work with you on the right solution for your business.
I literally grew up in the Material Handling industry. When I was a kid, on weekends and holidays, I was working for my father and helping to install everything from Pallet Rack, to Garment on Hanger (GOH), to Mezzanines and Conveyor Systems. General contracting for distribution centers didn’t exist. Over the years, I have seen the Material Handling industry evolve in many ways. It always appeared to me that Distribution Centers were seen as a cost center or a liability for the company. Now, many years later, it appears that everyone is realizing that building the right Distribution Center is a way to increase space utilization, maximize employee productivity, and overall reduce costs. I have also seen the code requirements change over the years. It is not that building codes did not exist before, because they did. Rather, it is because they are now taken far more seriously.
One of the first deals I saw my father make, began with a meeting and ended with a handshake. We started the project the very next day.
About 13 years ago, we were called into a building that was about to be shut down because the Material Handling provider did not submit for permits. The mezzanine could not support the required 125 pounds per square foot, the GOH underneath the mezzanine was not installed in compliance with the required sprinkler system and there was basically no egress path. The code official was ready to shut the building down. To be honest, I had almost zero experience with code requirements at the time. But when the potential customer asked if we could help, I said yes. And help, we did.
We found the right Professional Engineer (PE) and he helped us through it. In a relatively short period we had submitted the proper permit application and before long, we corrected all of the problems. That customer actually became one of our best customers and we still work for them today.
Trial by Fire
I learned in a trial by fire 13 years ago how important submitting the correct permit application package was. I have been learning ever since as the code requirements based on specific storage systems are always evolving and changing. As of right now ABCO Systems LLC, has 27 active permit application packages out to a multitude of different townships across the country. Today, along with the industry and the code officials, ABCO Systems has also evolved. It is no longer a viable option to simply install Pallet Rack or GOH without going through the necessary steps.
ABCO Systems LLC, has become a full service provider for just about anything any of our customers needs. From what I can tell, we have become one of the first General Contractors for the Material Handling world. ABCO handles the project management (PM) of building out of your entire storage system. We begin by providing all of our end users with a complete view of exactly what they will need in order to build out their system. We continue by getting competitive quotes for the necessary trades such as Fire Suppression, Electric, Dock Door or even HVAC. ABCO manages the entire process from the Permit Expediting all the way to the installation and then finally the inspections.
We do what we do, so that you can do what you do. We do it fast, we do it competitively priced, and we do it with the customers specific requirements in mind.
At ABCO Systems we are not just selling steel products, we sell solutions.
Being that we are a construction company, we have always been serious about safety. It has always been our first priority for a plethora of different reasons.
However, it was not until about 5 years ago that we learned how much we did not know. ABCO started to work with our insurance company to create standards for our staff and plans in case of emergency. We are still evolving and we are still learning more every day.
Further to that, because we work with local code officials in townships all across the country, we have learned a lot of what they have to teach us. For them, it comes down to the simple fact that life safety is their only priority.
It is because of this that we are beginning to place even more of focus on helping our customers create safer environments for their teams. There are some seemingly basic life safety requirements that are often times overlooked and we are dedicated to increasing our own knowledge to ensure that we continue to provide more and more value to our customers.
Warehouse Safety
Is your fire protection system up to date? Do you have enough water flow in your building to support your commodity and how it is stored in your Pallet Rack or your Garment on Hanger (GOH).
Are your Egress Lights active and working? Do you have a clear Egress path?
Do you have the necessary safety barriers between lift equipment and walking staff members?
We can help you identify and rectify all of these potential hazards. Not only will it help increase employee moral by showing you care about employee safety, but it will also increase productivity by having standard operating procedures. On top of all that, a clearly documented safety protocol can also reduce your liability, and therefore your costs, with your insurance company.
ABCO Systems has developed a safety/maintenance program that can help with all of your needs.
There is an interesting trend in the used pallet rack market. When renting a warehouse, some landlords are throwing in a perceived bonus to get new tenants. Not only do they get the space, but it comes with rack already installed.
What a deal, right!
Well it can be a deal or it could be a nightmare. The only way to figure out the difference is with a lot of research and maybe some help from an expert. Both parties, the landlord and the tenant, need to know exactly what they are getting and whether the deal is actually a deal.
Here’s What You Need to Look for When Renting a Warehouse
Tenants
Current Capacity: You, when renting a warehouse, don’t know what the plan was by the original tenant that installed the rack. Were they storing car parts or giant stuffed animals? Even if you look at the old tenants product and believe it must have been heavier than yours, how do you know they did not have a WMS (warehouse management system) that only allowed certain items on the shelf levels and kept the heavier items on the ground?
Even the placement of the shelf levels effect the load capacity of the uprights. Without seismic and load calculations based on your product locations or having an experienced partner in the rack business evaluate the capacities of the system you may not realize the danger until it is too late.
Layout: How did the previous tenant layout the rack? Was it for single, double, or triple-deep storage? Does that work for your need? Does that truly optimize the space you are moving into for your product? If not, this means you will need to hire a company to relocate the rack so that it will work for your storage.
While this could be a good money saving tactic for the new renter, you need the help of an experienced partner in the rack business, to look over the layout and let you know how much it will be to reconfigure the rack.
Landlords
You have a building with rack in it, but that may be a turnoff for some renters. The rack may be for a very specialized layout or business and may not work for 95% of the market. In this case the best idea for the landlord is to sell the used rack, and rent the building empty.
If you wanted you could even reduce the price of the rental due to the windfall they are receiving for selling the used rack. Lower rent is always appealing to the market.
If you need help from either side, whether you’re a landlord with a current rack set-up or a client looking to rent or have rented a building with used rack in place, contact ABCO Systems to get a free review of your current storage. We buy used rack or can help you reconfigure the storage in a way that works for you.
Knowing how to install pallet racking can help you determine whether it is worthwhile to do it yourself or to hire out the installation. When you are putting together your warehouse design, being able to install your own equipment and infrastructure supplies means being able to control your bottom line. That’s why it is important to understand the labor costs and timelines for items like pallet rack installation.
Individual Instructions on How to Install Pallet Racking
The first thing to understand is that every manufacturer has slightly different instructions for how the pallet racks should come together. That means that you will need to refer to the individual instructions for your pallet racking to see how the pieces should fit. This also helps you to better determine whether or not your installation is going according to plan. Once you have understood the individual instructions that will let you put together the structures in your plan, it’s important to move on to the step they all have in common: concrete anchoring.
Anchoring Your New Racks to Concrete
Make sure that you are going into this process with a floor plan, first and foremost. From there:
Consider whether you should use strike anchors or wedge anchors. Consult the specifications for your particular ABCO Systems model for recommendations.
Using the holes in the bottom of the racking as a template, carefully drill the holes for your anchors.
Clear the holes of all debris with a shop vac or air hose.
Place the washes and thread the nuts for each anchor.
Place each anchor in the hole, through the legs of your pallet racks.
Hammer the anchors into each hole and tighten all nuts with a torque wrench until they attain the correct tightness.
That is how to install pallet racking. From there, it’s just a matter of putting together your rack according to the manufacturer’s directions.
Customers that work with us are typically looking to do more than simply store merchandise. Instead, they are trying to control their own supply process, to use logistical efficiency to improve their bottom line and to increase cash flow even when their market share is stable. To do that, your organization and staging needs to move beyond the by-hand preparation and staging most operations start with. You need organizational systems that help you to know where everything is located, along with the physical tools that help you get your new displays showroom ready before a customer ever sees them. Thats where ABCO Systems garment on hanger systems come into play.
How ABCO Systems Supports Fashion Retailers
Our garment on hanger systems are designed to store articles of clothing in ways that reduce the number of steps needed to get them ready for display. By setting up your warehouse to deliver products more efficiently to the showroom floor, you reduce the labor costs of your logistical support. These systems also offer a great deal of protection that is not offered by alternative storage and processing systems, including:
Improved protection for sensitive fabrics Prevents decorative features like sequins from being disturbed by the weight of other garments These systems improve oversight by making it easier to take inventory at a glance.
Planning for Success With Our Garment on Hanger Systems
To get the most out of your stockroom, you need to find the right balance of industry-specific equipment like our Garment on Hanger storage system and traditional tools like mezzanines, pallet racks, and other warehouse supplies. Planning for success means finding the supplier who will be able to meet all of your warehousing needs in one place. Luckily, not only do we offer some of the most sophisticated garment storage on the market today, we also carry a wide variety of general warehouse equipment too.
Take a look at our product list and see what reorganizing your stockroom for efficiency can do for you.
