Is the Right Person Running Your Warehouse?
Do you have the proper person running your warehouse operation today that will launch you into the next level of service required for tomorrow’s customers? Each year the logistic warehousing industry sees leaner margins due to ever increasing cost down initiatives by their customers.
The days of 20 percent to 30 percent margins for most industries are over. The question you need to ask yourself is: How do I keep making money in this industry when the customer is pinching away all of my profits year after year?
One key factor playing a huge role in the profitability of your business is the person you have running your warehouse operation.
Place a check mark by all that apply for your warehouse leader:
- Commanding (my way or the highway style)
- Democratic (inclusion of others when making decisions)
- Coaching (facilitating the betterment of employees)
- High financial aptitude
- Stays in the office most of the day
- Spends a good portion of the day out on the warehouse floor
- Running the business for today
- Running the business for the future
Now that you’ve finished checking all of the choices you feel best reflects your warehouse leader’s management style, let’s take a look at what type of person is the best leader.
A warehouse leader should be commanding when an important decision has to be made and there’s very little time to make it. A warehouse leader should be democratic and inclusive when the opportunity presents itself to help form a unified solution.
All warehouse leaders should be coaching their people to succeed and to move up within the company. After all, if a warehouse position opens up, then it would be proactive to already have someone qualified and trained to fill that open position.
A warehouse leader should be out on the floor a great deal of the time to keep the pulse of the operation. You can’t do that sitting behind a desk all day.
A warehouse leader should understand all of the financial impact points of an operation. Lastly, you won’t be in business tomorrow if you’re only looking at today. You need a leader with a vision toward the future. Being content now will only land you behind your competition later.
Here at Penske Logistics, we strive to have the highest quality management personnel. Our ideal warehouse leader is one who understands what’s critical to the customer. Our leader runs the business through metrics.
An ideal leader applies Six Sigma techniques to work on improvement projects based upon data. Our leader includes all levels of employees on improvement projects to assure buy-in from the floor to the upper management.
Our ideal leader develops a top-down lean thinking environment where continuous improvement and cost savings initiatives occur as normal daily activities. The ideal leader is working with the customer to align the warehousing needs with future requirements.
If you’re in the market for bringing on board top quality professionals to establish a strong warehouse environment, to help you today and in the future, then look no further than Penske Logistics.
By Mike Casidy
Casidy is currently managing director for Penske Logistics in Mexico. This was written by Casidy when he worked for the company as a product line manager in distribution center management. He can be reached here.