Ten Tips to Running a Safer Distribution Center
July 18, 2014
Penske Logistics is a leader inwarehousing and distribution center optimization. The company safely manages over 19 million square feet of warehousing space for market-leading companies around the world. Eric Hepburn, vice president of distribution center management for Penske Logistics, offers these tips, in no particular order, gleaned from personal experiences over the last 15 years:
<p><strong>1. Take safety personally and make it personal:</strong> Penske has gone through an enterprise-wide rededication to safety. Our safety numbers are strong but we have challenged associates to aim for zero injuries. In doing so, leading indicators fell at a greater rate than ever before.</p><p><strong>2. Never miss an opportunity to talk safety with your associates:</strong> What’s the first thing you say to a warehouse associate when greeting them? If safety isn’t mentioned in the first minute, you’ve wasted an opportunity. Open with it and close with it. A conversation might go like this: “Hey John, how is it going today? Safe day so far? Keep up the good work and be safe.” It seems easy when it’s written but making it a practice takes a conscious effort on the part of a manager.</p><p><strong>3. Even at its best nothing is foolproof:</strong> Accidents are still going to happen - it’s all about limiting the chances for one to happen. Make sure you set the tone with your team by starting the day with a safety briefing. Know your numbers. When you know the facts and numbers your team will see the importance you place on running a safe workplace.</p><p><strong>4. Invest in people and their safety:</strong> It requires investment but every penny spent trying to prevent an accident is better than any expense dealing with the results of an accident.</p><p><strong>5. Talk safety from the initial interview:</strong> Make it part of the first interaction with any new associate. If they hear it on the day they’re interviewed they will know to take it seriously when accepting the job.</p><p><strong>6. Extend the boundaries of your safety zone:</strong> Provide a safety briefing and one-page document to drivers with inbound loads or who are on-site to pick up outbound loads. They are not as familiar with the building, dock doors, etc. Brief them so they operate as safely as one of your own associates.</p><p><strong>7. Imagine having to inform an associate’s family that there’s been a serious accident:</strong> Although I hope no one who reads this ever has to do it, trust me when I tell you having to inform an associate’s family member there has been a serious accident will instantly recommit you to focus.</p><p><strong>8. Don’t take no for an answer:</strong> People can and will change. Don’t let your team be comfortable with their performance regardless of how good their safety numbers might be. There is always room for improvement.</p><p><strong>9. Promote safety through incentives:</strong> I’d rather provide a $100 a quarter safety bonus to 100 associates than fund one $10,000 claim for careless behavior that placed people in danger. Budget for it during the planning season and know you’re going to use it to reward great behavior.</p><p><strong>10. Provide immediate feedback when you see an unsafe act:</strong> Don’t walk past someone doing something unsafe. Stop and provide counseling to the associate rather than seeking out their supervisor to discuss the issue.</p><p><em>By “Move Ahead” Staff</em></p></div>
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Is the Right Person Running Your Warehouse?
December 09, 2013
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.
<p>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?</p><p>One key factor playing a huge role in the profitability of your business is the person you have running your warehouse operation.</p><p>Place a check mark by all that apply for your warehouse leader:</p><ul class="ee-ul"> <li>Commanding (my way or the highway style)</li> <li>Democratic (inclusion of others when making decisions)</li> <li>Coaching (facilitating the betterment of employees)</li> <li>Approachable</li> <li>High financial aptitude</li> <li>Reactive</li> <li>Proactive</li> <li>Stays in the office most of the day</li> <li>Spends a good portion of the day out on the warehouse floor</li> <li>Running the business for today</li> <li>Running the business for the future</li></ul><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>Here at <a href="https://www.penskelogistics.com/">Penske Logistics</a>, 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.</p><p>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.</p><p>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.</p><p>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.</p><p align="right"><i>By Mike Casidy</i></p><p><i>Casidy is currently </i><a href="https://www.gopenske.com/newsroom/2013_9_25_pl_mx_new_director.html"><i>managing director</i></a><i> 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 </i><a href="https://www.penskelogistics.com/company/contact_logistics.html"><i>reached here</i></a><i>.</i></p></div>
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Warehousing: Small Changes Equal Big Paybacks
December 02, 2013
When I’m working at home hanging pictures my wife can always spot a crooked picture from across the room. I usually have to pull out my iPhone and use the level function or grab a tape measure because it’s not centered on the wall.
<p>I have an associate who is very adept at doing the same thing except he looks for waste. Not waste as in trash on the floor – but waste in motion, layout or process design. He can spot the problem from across the room.</p><p>We already spent some time talking about qualitative approaches for <a href="http://blog.gopenske.com/logistics/guest-editorial-walk-your-warehouse-quit-driving-the-desk/">assessing the warehouse</a> in the areas of safety, productivity, key performance indicators (KPI), morale and cleanliness.</p><p>This post will provide some additional ideas on how to identify opportunities for improved efficiency or cost reduction within your warehouse operation.</p><p>The story that follows is one such instance of the product line manager I spoke of above just paying attention and questioning what a difference a minor change would make.</p><p><b><span>Situation 1:</span></b></p><p>Product line manager (PLM) <a href="http://blog.gopenske.com/logistics/guest-editorial-walk-your-warehouse-quit-driving-the-desk/"><b>walking the floor</b></a> with the senior facility manager and noticed that his manual pick/pack flow rack operation was located near the receiving doors.</p><p><b>Suggestion:</b> Move this operation closer to the shipping dock.</p><p><i>Facility manager:</i> “How would a few feet make a difference?”<i></i></p><p><i>PLM:</i> “Let’s walk the floor and measure the distance that the four operators travel moving product to the shipping docks. Then let’s measure the same distance if we move the pick/pack stations to where I am suggesting.”</p><p><b>Results: </b>The difference was 98 feet. It took an additional 21 seconds per person to walk the distance. Each associate was making 67 trips per day. Each associate was spending 23 minutes of “walk time” per day. Roughly 5 percent of their day was spent in non-productive movement that could be easily changed.</p><p>The total cost to move the flow rack: $2,800. Annual cost of the associates walking unnecessarily: $9,700. The move paid for itself within four months and provided nothing but savings and increased productivity within the team.</p><p><b><span>Situation 2:</span></b></p><p>Product line manager notices that associates are running late in returning from their breaks. This caused a morale issue and incurred small amounts of additional overtime.</p><p><b>Suggestion: </b>Observation led to the conclusion that the microwave oven capacity in the break room was a bottleneck in allowing associates to heat up their meal. This was an easy fix as there was ample space to place additional microwave ovens in the break room.</p><p><b>Results:</b> Spend $400 on additional microwave ovens which leads to instant morale improvement and the elimination of the tardiness from breaks.</p><p>Not all changes will be this easy and provide such a quick ROI but getting out from behind the desk is a great start. These two examples may sound a bit mundane but any chance to improve the competitive advantage and increase margin is a win.</p><p align="right"><i>By Eric Hepburn</i></p><p><i>Hepburn is vice president of distribution center management for </i><a href="https://www.penskelogistics.com/"><i>Penske Logistics</i></a><i> and can be </i><a href="https://www.penskelogistics.com/company/contact_logistics.html"><i>reached here</i></a><i>. He is located at Penske’s global headquarters in Reading, Pa.</i></p></div>
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Penske Logistics to Manage Ducati’s Brazil Logistics Operations
November 26, 2013
Penske Logistics South America has signed a contract with Italianmotorcycle brand Ducati in Brazil to provide warehouse management services for a distribution center in Cajamar (SP).
<p>“We chose Penske Logistics as a strategic partner to help us add value to the Ducati brand in the country through its experience in the automotive market,” explains Ricardo Susini, director of Ducati in Brazil. "We considered its history and credibility with other customers in the automotive industry.”</p><p><a href="https://www.penskelogistics.com/south-america/">Penske Logistics</a> will handle inventory management and movement of goods – from motorcycles to brand accessories – to supply in-country Ducati stores.</p><p align="right">Paulo Sarti, Penske South America managing director stated: “It is gratifying to be part of the growth process of a company that is investing and believes in the country, especially in the current landscape where we see record production and sales in the automotive industry.”<i></i></p><p align="right"><i>By “Move Ahead” Staff</i></p></div>
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Penske Logistics Selects JDA Software for Warehousing
November 04, 2013
Penske Logistics today announced that it has selected the JDA® Warehouse Management and JDA® Warehouse Labor Management solutions for use on a global basis. The decision is one in a series of recent moves by Penske Logistics to further modernize and upgrade its supply chain and logistics technology capabilities. The announcement was made during JDA FocusConnect 2013, JDA’s annual conference, at the Sofitel London Heathrow Hotel in the United Kingdom.
<p>“We’ve invested more than $20 million in a variety of technology improvements to help fortify our existing infrastructure and keep our company on the leading-edge of supply chain technology,” said Marc Althen, president, <a href="https://www.penskelogistics.com/">Penske Logistics</a>. “We’re pleased to be working with JDA in a new way and we have a history with them as a valued technology source.”</p><p>Penske Logistics currently operates more than 19 million square feet of warehouse space on behalf of its customers that range from leading automotive and appliance manufacturers to industrial, grocery, retail, healthcare products and cosmetics makers.</p><p>“We are delighted to help Penske Logistics integrate and optimize its distribution logistics operations,” said Hamish Brewer, chief executive officer, JDA Software.</p><p>“Having successfully piloted JDA solutions, we’re planning to begin a first quarter 2014 roll-out,” stated Eric Hepburn, Penske vice president of distribution center management. “This will commence a wider global deployment schedule over the next several years.”</p><p>“By tightly integrating JDA warehouse management with its previously deployed JDA transportation solutions, Penske Logistics can execute on advanced upstream transportation plans with visibility into warehouse constraints such as dock profiles, and labor and warehouse capacity,” explained David Johnston, senior vice president, supply chain, JDA Software.</p><p align="right"><i>By “Move Ahead” Staff</i></p></div>
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Penske Logistics Wins Warehousing Excellence Award from Whirlpool
October 01, 2013
Penske Logistics has earnedWhirlpool Corporation’s Finished Goods Warehousing Provider of the Year Award. Penske earned the award for its excellence in boosting year-over-year productivity, cost savings, safety improvements and other innovations to benefit the leading appliance manufacturer’s supply chain network.
<p>“We are honored to receive this award from Whirlpool and we truly value their close collaboration,” said Penske Logistics president Marc Althen. “I also congratulate and thank our many associates for their efforts in making these warehouse efficiency and productivity gains possible for our customer.”</p><p>Penske Logistics currently manages and optimizes a combined network of 10 major <a href="https://www.penskelogistics.com/solutions/warehousing-and-distribution/">warehousing and distribution</a> centers for Whirlpool across the U.S. These facilities encompass approximately 9 million square feet of warehousing space and accommodate more than 43 million units of finished goods annually.</p><p>“Penske’s investment in a collaborative relationship and continuous improvement culture continues to pay dividends for both Whirlpool and Penske,” says Dan Iddings, director of Whirlpool Corporation’s North America distribution operations “All of our Penske-managed sites have achieved excellent performance while providing top level of customer service.”</p><p><i>Posing for an awards photo, from left: </i><i>Narendra Carambiah and Dan Iddings, Whirlpool; Rick Dernulc, Penske; Paul Vanderboegh and Stan Dubbert, Whirlpool; Michael Ledbetter and Marc Althen, Penske; Michelle VanderMeer and Jim Keppler, Whirlpool; Lynn Warden Penske and Terry Miller, Penske.</i></p><p align="right"><i>By “Move Ahead” Staff</i></p></div>
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Penske Logistics South America has secured expanded business withNatura, one of the top makers of skin care, cosmetics, perfume, hair care and other beauty products in Brazil. Penske is now overseeing the integrated warehouse management of finished products and raw materials for Natura in Cajamar (SP).
<p>The new distribution center, located at the <a href="https://www.penskelogistics.com/south-america/pt/">Penske Logistics</a> complex in Cajamar, has an area of 18,500 m² and employs 35 associates, who are responsible for storing raw materials and finished products to supply Natura’s factory in the city. Its warehouse in Jundiaí is responsible for distributing Natura products across the country.</p><p>Penske holds a license from the Agência Nacional de Vigilância Sanitária (National Health Surveillance Agency Brazil) and has developed product handling solutions in accordance with the specifications of Natura and government agencies.</p><p>Penske carefully manages products within its warehousing operations with the aid of an on-site pharmacist responsible for overseeing processes that ensure regulatory compliance.</p><p>This includes product shelf-life, health conditions, hygiene, and packaging. Penske’s ANVISA license enables it to handle, store and transport items such as cosmetics, pharmaceuticals, health care products, hygiene, personal care, food and related products.</p><p>Penske has been Natura’s logistics operator since 2011 and is located in the South region with a distribution center in São José dos Pinhais (PR).</p><p>Currently the distribution center in São José dos Pinhais has 10,700 m² and a capacity of processing applications for 9,500 volumes per day and storage of 3,800 pallets, enabling a faster delivery of products for thousands of Natura consultants in Paraná and Santa Catarina.</p><p align="right">Paulo Sarti, managing director for Penske Logistics South America stated: “this new project is rewarding. We have shown that successful relationships, as we have with Natura, are due to the fact that we are connected and attentive to the characteristics and peculiarities of each of our clients, delivering positive results and going beyond expectations to bring continuous improvements.”</p><p align="right"><i>By “Move Ahead” Staff</i></p></div>
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Warehousing: Walk Your Warehouse – Quit Driving the Desk
July 10, 2013
The good news is with a minimal time investment you will be well on your way to reducing your overall supply chain expenses and improving your warehouse. Plan to spend an hour a day and ask a lot of questions.I advocate that you keep asking why, until you determine the root cause of the problem. Often, it is not the first why that gets you to an answer.
<p>When you get back to your desk - identify your top 5 list (pick one from each category) and get your team engaged in helping solve the problems.</p><p>Keep in mind - there is no magic wand to wave that will turn the frog into a prince overnight.</p><p>This will take an investment of time and resources - but if you make it a practice to go for routine walks through your warehouses you will kill two birds with one stone: first and foremost you'll get to know your warehouse team at a greater level and secondly you will see a process change that leads to expense reduction and an increase in efficiency.</p><p>Five key categories can help you determine if you run a frog or a prince.<b></b></p><p><b>Safety</b></p><ul class="ee-ul"> <li>When you enter the facility does it clearly indicate the corporate commitment to safety?</li> <li>Are you asked to don any special apparel for your one hour walk?</li> <li>Do you actively track safety metrics and regularly discuss them with your associates?</li> <li>Are safety committee meetings posted on the safety board and are they up to date?</li> <li>Do all the associates go through an active safety orientation <i>prior</i> to their first day of work? How about periodic refresher training?</li> <li>If OSHA inspectors walked in <i>right now</i> – would you pass the audit?</li></ul><p><b>Productivity</b></p><ul class="ee-ul"> <li>Do you have enough space to operate and maintain a safe environment?</li> <li>Is your warehouse laid out in the most efficient manner to service the needs of your customer? If it's been more than two years since engineering reviewed the design of the work within the building, it may be time.</li> <li>Do you have established productivity measurements for all areas of the warehouse?</li> <li>Are you utilizing all the tools at your disposal to maximize productivity?</li></ul><p><b><img class="rm-shortcode" data-rm-shortcode-id="7bec133e3d46c2bf9b2beec7c3b035e1" data-rm-shortcode-name="rebelmouse-image" id="83187" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzE5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2MTMzODgzOH0.SvfdldXDxwyvF3tWXH_IU3haJBWHOHEeZEhhrh49mB8/img.jpg?width=980"/>Customer KPI's</b></p><ul class="ee-ul"> <li>Are you currently meeting your defined metrics established for each customer you service?</li> <li>Do you hold daily meetings to discuss the metrics with your floor level associates to make them aware of how your location is performing in the eyes of the customer?</li> <li>Is there an active mechanism in place to measure the facility over time and against other facilities within the network?</li> <li>Do you have established QBR’s with your customer to discuss metrics and goal achievement?</li> <li>Are you engaged in any cross-functional/cross-company teams to improve operating metrics?</li> <li>Can a random warehouse associate provide you with today’s number for your number one customer KPI?<b></b></li></ul><p><b>Associate Morale</b><b></b></p><ul class="ee-ul"> <li>When you walk the building do you get a sense that people seem generally happy executing their functional role?</li> <li>Do heads shake east and west (a bad sign) vs. north and south (a good sign) when they see you approaching?</li> <li>Does your on-site leadership team spend inordinate amounts of time in their offices on conference calls?</li> <li>Does the suggestion box ever fill up?</li> <li>Are floor level associates encouraged and rewarded for speaking up and suggesting process improvements?</li> <li>Do you measure their satisfaction in a formal, anonymous manner? How often?</li> <li>Do associates understand the corporate vision and the role they play in execution?</li></ul><p><b>Cleanliness and Organization</b></p><ul class="ee-ul"> <li>Is your warehouse generally clean and organized?</li> <li>Do you have locations clearly identified and easily accessible?</li> <li>Do your warehouse associates know what 5s is and how they should be using it within the warehouse?</li> <li>Would you eat lunch in the warehouse break room? Do you?<b></b></li></ul><p align="right">At Penske Logistics we take pride in putting skin in the game to assure we reduce our customers operating expenses and help them improve their processes. If you need company on your walk – please let us know, since we make the walk an integral part of our process.</p><p align="right"><i>By Eric Hepburn</i></p><p><i>Hepburn is vice president of distribution center management for </i><a href="https://www.penskelogistics.com/"><i>Penske Logistics</i></a><i> and can be </i><a href="https://www.penskelogistics.com/company/contact_logistics.html"><i>reached here</i></a><i>. He is located at Penske’s global headquarters in Reading, Pa.</i></p><p></p></div>
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Penske Logistics recently announced it was awarded the contract to be the operational manager of theBMW of North America, LLC parts distribution center in Nazareth, Pa.
<p>“We are pleased to further expand our existing relationship with BMW,” said <a href="https://www.penskelogistics.com/" title="Penske Logistics - A leader in supply chain and logistics solutions.">Penske Logistics</a> President Marc Althen. “We are collaborating closely to ensure a smooth transition of the operations and in welcoming the employees into our organization.”</p><p>Financial terms were not disclosed. Under the agreement, Penske Logistics will provide a trained labor force for the aftersales warehousing and fulfillment facility that currently supplies automotive parts, motorcycle parts, and lifestyle items for distribution to BMW Group dealerships in North America.</p><p><a href="https://www.penskelogistics.com" title="Penske Logistics">Penske Logistics </a>will begin operational management of the 875,000 square foot facility starting July 1. Employment continuity will be offered to the employees at the facility. In addition, Penske has worked with both BMW NA and UAW Local 2326 leadership to reach a labor agreement for the unionized workforce at the site and a transition plan for the workers.</p><p>“We are very pleased to expand our current relationship with Penske Logistics” said Lawrence Demski, Department Head, BMW of North America Parts Logistics. “We are confident this global company will deliver world class performance at our largest parts distribution center in North America serving BMW, MINI, Rolls-Royce, and BMW Motorrad.”</p><p>Penske Logistics has been working with <a href="https://www.gopenske.com/newsroom/2007_24_pl_bmw_win.html" title="Penske Logistics BMW Press Release 2007">BMW since 2007</a> and currently provides a variety of solutions including <a href="https://www.penskelogistics.com/solutions/transportation-services/" title="Transportation Solutions from Penske Logistics">transportation management</a> and <a href="https://www.penskelogistics.com/solutions/integrated_logistics.html" title="Supply Chain Management from Penske Logistics">supply chain managemen</a>t for inbound manufacturing at BMW's Spartanburg, South Carolina facility.</p><p><em>"Move Ahead" Staff</em></p><p>--------</p><p><em>Editor's Note: Image courtesy of <a href="http://www.penskeautomotive.com/" title="Penske Automotive Group">Penske Automotive Group</a></em></p></div>
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Harley-Davidson Selects Penske Logistics in Brazil
September 12, 2012
As presented in a case study during the recentInstitute of Logistics and Supply Chain (ILOS) Logistics Forum in Brazil, iconic motorcycle manufacturer Harley-Davidson has selected Penske Logistics to manage its logistics processes in Brazil.
<p><strong>Excellence in Distribution Center Management</strong></p><p>In the 2,350 square meter warehouse in Cajamar (SP), exclusive to Harley-Davidson´s operation, a team of Penske Logistics associates ensure the efficient shipment of about 13,500 SKUs for 11 Harley-Davidson distributors and resellers across the country. The monthly average movement inbound and outbound is around 40,500 pieces.</p><p>Penske Logistics developed a customized methodology of work and new roles inside the <a href="https://www.penskelogistics.com/solutions/warehousing-and-distribution/" title="Penske Logistics Distribution Center Management Solutions">distribution center </a>to meet the client´s deadlines, demands and distribution flows. This work includes receiving, separating and distributing pieces, merchandising material, accessories, and clothing.</p><p>"We are very pleased to be providing services for Harley-Davidson in the country, as it demonstrates our expertise in the automotive segment and the level of specialization that we provide to every client. We are committed to this relationship and happy with the results we have already achieved," said <a href="https://www.penskelogistics.com/company/paulo_sarti.html" title="Paulo Sarti">Paulo Sarti, </a> managing director of Penske Logistics, South America.</p><p>Harley-Davidson expects motorcycle sales, outside the U.S. to exceed in 40 percent in its 2014 production. To reach this target, markets such as Brazil are considered strategic for the company.</p><p>"We really care about our post-sale activities. To ensure the efficiency in this process, we can now count on a logistics partner, who is able to manage the entire distribution effectively as Penske Logistics," said Longino Morawski, commercial director manager for <a href="http://www.harley-davidson.com/pt_BR/Content/Pages/home.html" title="Harley Davidson Brazil Website">Harley-Davidson Brazil.</a></p><p>Since the start of the collaboration in January 2012, Penske Logistics has re-engineered the logistics processes to accelerate the separation of product lines. From 1,988 lines in January, it had a peak to 6,841 in April, ensuring greater flexibility in shipping requests.</p><p>The layout of the warehouse operation was also specially designed to allow separation into categories of items and is enabled with RFID, electric forklifts and pallet trucks for greater efficiency in handling inbound and outbound shipments.</p><p><strong>A History of Working Together</strong></p><p>Prior to this recent business relationship in Brazil, Penske and Harley-Davidson have also done business together in the United States over the years. The company has provided a variety of transportation-related services including full-service truck leasing, truck rentals, truck fleet maintenance, and more recently <a href="https://www.penskelogistics.com/solutions/transportation-services/dedicated-contract-carriage/" title="Penske Logistics Dedicated Transportation Solutions">dedicated contract carriage</a> services.</p><p><em>By "Move Ahead" Staff</em></p></div>
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Penske Logistics will be an exhibitor at the upcomingWarehousing Education and Research Council annual conference from May 6 to May 9. It will be held at the Atlanta Marriott Marquis.
<p>The WERC event is an educational conference and exhibit event for warehousing, distribution and logistics professionals.</p><p>Come visit Penske Logistics in booth 307, to discuss the broad array of solutions available <a href="https://www.penskelogistics.com/solutions/warehousing-and-distribution/">to optimize distribution centers and warehouses</a> as well as transportation management and dedicated contract carriage solutions.</p><p>To read more about <a href="https://www.penskelogistics.com" title="Penske Logistics">Penske Logistic</a>s and its industry-leading best practices in distribution center management that was recognized by WERC for best operational practices with a top grade of 93.6 percent, <a href="http://blog.gopenske.com/logistics/penske-logistics-helps-warehousing-industry-establish-best-practices-for-distribution-center-management/">click here.</a></p><p>https://twitter.com/#!/PenskeNews/status/197715921480073216</p><p><em>By Alen Beljin</em></p> </div>
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Penske Logistics Helps Warehousing Industry Establish Best Practices for Distribution Center Management
January 21, 2011
In the case of Whirlpool Corporation, it may enlist the services of third-party logistics companies (3PL is a commonly used industry acronym) like Penske Logistics to ensure that regional distribution centers operate efficiently.
<p>So efficiently that a 1.7 million-square-foot facility in Perris, Calif. owned by Whirlpool and operated by Penske was <a href="https://www.gopenske.com/newsroom/2011_1_14_whirlpool.html">recently recognized</a> by the Warehousing Education and Research Council (<a href="http://www.werc.org/">WERC</a>) for best operational practices. It was certified by WERC and received a top grade of 93.6 percent. Below, select Penske Logistics associates in Perris pose with the WERC certification plaque.</p><p>“A benefit of certification for a 3PL is that it may help attract more business,” explained Steve Murray, principal consultant/chief researcher of <a href="http://www.supplychainvisions.com/">Supply Chain Visions</a>, a company that WERC contracted with to perform the audit.</p><p>Murray feels that Penske is on the forefront by undergoing this voluntary audit (that reviewed over 110 warehousing processes in eight functional areas) noting: “I think it’s an excellent program and we expect the demands for certifications to grow” within the industry. He added that it helps both the customer and 3PL identify areas for performance improvements, and provides a complete snapshot of how the distribution center is functioning.</p><p><img class="rm-shortcode" data-rm-shortcode-id="a3620aa3f1667280e08d72e42b997000" data-rm-shortcode-name="rebelmouse-image" id="5a0e5" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjgxNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMzY4MTAzN30.RCsJlFEUrJ9e39HXTRMThWrXYsl8928Qqb88efnhMdY/img.jpg?width=980"/>Among the areas that Penske was graded on: warehouse management, product consolidation, shipping practices, the handling of material and storage and inventory control.</p><p>“Receiving this WERC certification is valuable to both Penske and Whirlpool,” explained Penske’s Ed Kitt, vice president of distribution and warehouse management. “It provides a benchmark on best practices within the industry.”</p><p>This Whirlpool facility distributes the entire range of Whirlpool major appliance products and select accessories to big box retailers, independently owned stores, and consumer home delivery in Southern California, Nevada and Arizona.</p><p>“We are very pleased to be recognized by WERC and to be among the early third-party logistics providers to go through this certification process,” said Terry Miller, Executive Vice President – Operations, Penske Logistics. “I especially congratulate our associates for their efforts and performance to rank the Perris facility among the industry’s best.”</p><p>Whirlpool executive Kevin O’Meara stated in a Jan. 14 news release: “We are thrilled to see Penske be recognized for their warehouse processes and execution and congratulate the entire Penske team on this great accomplishment.”</p><p><em>By Alen Beljin</em></p></div>
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