Wars Aren't Won on the Cheap To be effective, your fight against unmanagement has to start the moment
you decide to install a new material handling system. Then is the time to
start explaining to everybody who will be working with the system just what
it is expected to do and how they're expected to make it work. By everybody
we mean vice president on down to sweeper. And each should be told what his
specific responsibilities are.
Only one man I know could use the non-word "unmanagement" and make it work.
Bernie Knill.
He wrote the lead paragraph, and anyone involved in updating a warehouse or
distribution center would do well to take his advice. Many of those who
read it when he first wrote it in the March 1962 edition of Material
Handling Engineering were glad they did.
Technology has changed quite a bit in the 42 years since Bernie wrote his
first editorial in MHE, but those sage instructions for making the stuff
work are just as meaningful
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today. I reprinted a bit of his wisdom here not
only to make a point, but to pay tribute. You'll find Bernie's last column
for MHM on page 78 (Innovation). He's decided that the March 2004 edition
will be a fitting milestone to mark the start of a full-time vacation.
If you're a Bernie fan, as I am, you've come to appreciate his insights
into enlightened material handling management. I've had the pleasure of
knowing him since he first hired me in 1980. Under his guidance I learned
much about reporting on technology and the people who manage it. Although
the paragraph excerpted above was written well before my time on staff, I
couldn't have offered a more timely piece of advice to today's buyers of
material handling equipment. Warehousing and distribution are still
people-dependent arts. Logistics execution systems, poorly applied, will
fail. Lift truck fleets with poorly trained and motivated operators will
fail -- and will be dangerous while failing. The widely touted benefits of
radio frequency identification (RFID) will fail to materialize unless you
translate Wal-Mart's prescription to apply it in terms its users will
appreciate.
Another lesson Bernie taught me is material handling won't work on the
cheap. Shortcuts are paths to disaster. Both the suppliers and
practitioners of warehousing and distribution are prone to
bottom-line-induced blindness. On the supplier side, especially with all
the mergers and acquisitions that have been going on in the material
handling equipment and systems industries, some OEMs might be tempted to
undercut competitors on price to stay competitive with these new giants of
material handling. Stafford Sterner, president of SJF Material Handling,
went on the record with us to offer his take on the situation.
"Too many companies have bought into the concept of foregoing profits in
pursuit of market share, with the idea of becoming profitable once the
competition is eliminated," he opined. "It's called 'buying a job,' meaning
submitting a bid that allows for little or no profit."
The downside of that, he added, is that without profits, the OEM has no
money to invest in research and development, capital expenditures or
continuing education. Its growth is all on paper, and will disappear as
soon as it runs out of money to buy jobs.
You, the buyer, could lose out by dealing with such poorly funded and
trained suppliers. But you may also be prone to cutting corners yourself to
get technology on the cheap. Lift trucks are a perfect example. One of the
biggest problems lift truck OEMs face is when customers buy cheap, knockoff
replacement parts to keep old vehicles on the job. When these rebuilt lift
trucks fail dramatically as a result, productivity and safety suffer, and
customers end up paying a much higher price than they would have by
purchasing OEM-approved parts or even buying or leasing a new lift truck.
The need for on-the-job education on both sides of the sales counter has
only increased since Bernie Knill started his fight with material handling
"unmanagement" more than four decades ago. MHM will continue the campaign.
tandel@penton.com
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