Technology to Play an Increasing Role on Warehousing ROI

Bitcoinist_DecryptionWhen operating a successful business that sells products, proper warehousing techniques are essential to boosting ROI on those goods that are waiting to be sold according to Steve Banker, an expert in Supply Chain Management. Mr. Banker will be speaking at eft’s 3PL Summit and Chief Supply Chain Officer Forum in Chicago next Thursday.

Also read: Could You Run a Bitcoin Node Using DIY Home Security Solutions?

Banker’s speech is based on a survey of 150 respondents on what programs most improve warehousing ROI. Banker’s short answer is “that shippers report that technology implementations were the type of project that most improved their warehouse’s performance in the last five years.  3PL’s, in contrast, report that continuous improvement projects have given them the best success.” Bitcoin has the opportunity to improve Warehouse ROI by reducing transaction costs and increasing the speed of transactions.

The survey consisted of multiple questions that gauged the success of both technological improvements and projects that were designed to increase performance.

Banker found that technology was most successful in the company when brought with changes in the company to support the technology, and created training programs to support the implementation.

Improvement projects were most successful when a continuous improvement culture was put in place.

‘Lean operations’ were identified by the following metrics according to Banker:

How many employee-led kaizen events took place at the warehouse in question? Were those bottom-up or top-down events?

How many value stream mapping engagements did the company have in which engagements reach beyond the warehouse to broader supply chain processes?

Does the company run kaizen events outside of manufacturing and supply chain management, such as in its internal back office or sales or customer service functions? This is a good indicator of how deeply embedded Lean is into the culture as a whole.

What hard dollar savings were associated with these continuous improvement events? Were the soft dollar savings? The productivity improvements? How were these benefits measured and did the customer sign off on them?

 ROI is very important for Warehousing operations, and technology will likely play a more important role, according to Banker. Bitcoin or other digital currencies could have the ability to reduce further costs of operation by reducing transaction fees paid for daily operations. In terms of efficiency, the debate between technology and lean culture remains fierce, but Banker believes that technology will continue to lead.
 What do you think about the addition of Bitcoin into Warehousing practices? Comment below!

Images via Pixabay

Source: Forbes
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