Modern Materials Handling - November 2012

A special supplement to:2012 Warehouse/DC Operations Survey:Mixed signalsA record response reveals that readership is divided interms of investment: One side remains cautious, whilethe other is on the verge of making significantchanges to their warehouse/DC operations.By Maida Napolitano, Contributing EditorAfter years of slow economicprogress, the results ofthe Supply Chain Group’s2012 Warehouse and DistributionCenter (DC)Operations Survey show two schoolsof thought emerging from the ashes:There are those companies that remaincautious, staying conventional withminimal plans for expansion; and thereare those on the verge of making significantinvestments and changes to theirdistribution operations.Designed to gauge activities andtrends in warehousing and DCs, ourannual survey offers a first-hand lookinto the state of today’s DC and warehouseoperations. In September, a surveyquestionnaire was sent via emailinvitation to Supply Chain Groupsubscribers. The survey gleaned 805qualified responses (a new record forthis survey) from upper-level managersto CEOs—all personally involvedin decisions regarding their company’swarehouse and DC operations.Most participating companies camefrom manufacturing (44%), followed bydistributors (28%), third-party providers(9%) and retailers (8%). An assortmentof products handled in the DC wasonce again well-represented with foodand grocery leading the pack at 11%,followed by industrial/chemical at 10%,and electronics and building materials,tied for third, at 8% each.This year’s findings revealed mixedsignals coming from opposite ends ofthe spectrum. About 52% of respondentsare adopting a more cautiousapproach, spending less than $250,000for warehousing equipment and technologyin 2012.“That’s a predominant statistic,”says Norm Saenz, senior vice presidentand principal of TranSystems, asupply chain consulting firm and ourpartner for this survey. “It supportshow tough economic times have controlledspending to less than $250,000for a majority of respondents. That’sonly good for minor improvementsto operations, such as racking or thepurchase of a lift truck, versus openinga new facility or implementing newtechnologies.”48 N o v e m b e r 2 0 1 2 / Modern Materials Handling mmh.com