This month in Modern: See the bigger picture

A few years ago, executive editor Bob Trebilcock proposed a series of feature stories called Big Picture—pieces that would break out of our traditional equipment-centric coverage and focus on the broader role materials handling plays in driving larger company initiatives.

The premise rested on the idea that materials handling has “come out of the shadows” and is now directly tied to business operations; and thus, can build a competitive advantage that creates a measurable impact on the bottom line.

The timing for this series was perfect. Since its launch, we’ve documented how the e-tail revolution has pushed the productivity limits inside the nation’s four walls, forcing out traditional thinking at break-neck speed to make way for innovated systems designed for the challenge of omni-channel fulfillment that came in tow.

By stepping back for this broader view, these stories have given us a clearer view of how warehouse/DC operations are not only tied to success, but in many cases have become the foundation of the business strategy.

This month, Trebilcock continues his Big Picture series with “5 ways to handle peak demand,” a closer look at how the rise of e-commerce, more frequent promotions, and competitive service-level agreements are creating more peak periods than ever before. More strategic in nature than previous Big Picture articles, this story neatly captures the forces that have eroded the traditional peak demand, defines the equipment and processes savvy e-tailers and distributors are employing, and offers practice tips on how to shorten peak response time.

“Many elements have converged to fundamentally change peak demand,” says Trebilcock. “In the past, retailers would see seasonal, predictable peaks that fell neatly onto a calendar. They’d see a bump in orders for a few days or weeks, and then it would taper back down to a manageable average. In most cases, those days are gone.”

Trebilcock uses the case of Untied Stationers, a distributor and e-fulfilment provider of business products, to neatly define the new challenge. Bill Stark, United’s vice president of engineering, says that not only were these peaks predicable, but so was the flow of work inside the facility.

“It used to be that orders flowed in during the first shift, we picked them on the second shift, and we shipped them on the third shift for next-day delivery,” says Stark. “Today, people go on the Internet when they get home from work. In the morning, we have a slew of orders that came in overnight. Meanwhile, I’m likely to get a bunch of orders between 3 p.m. and 6 p.m. that have to meet the UPS cut-off time.”

And with the promise of same-day and next-day delivery, Stark’s crew is now managing the flow of orders in half-hour windows to hit carrier cut off times. “They’re going to pull the truck out at 7 p.m. whether something is on it or not.”

United’s challenge is far from unusual, yet finding the right mix of equipment, process and labor remains daunting. “Every situation will demand a specific solution tailored to that facility,” says Trebilcock. “However, what we found overall is that managing peak is more often a combination of clever staffing and flexible processes enabled by technology.”