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Tag: supply chain

Implementing Proper Safety Practices in the Warehouse

Warehouses are an essential component of the modern supply chain, and plenty are found in Colorado. Despite their societal importance, however, many modern warehouse facilities and distribution centers are underperforming, largely because of improper safety practices. Without proper safety standards in place, warehouses could see repercussions like floor issues, shutdowns, and even worker injury or death.

Warehousing is one of the most dangerous jobs out there, according to the Occupational Safety and Health Administration (OSHA). Potential hazards in the warehouse industry include unsafe forklift operation, improper stacking or storage of products, inadequate fire safety provisions, and/or failure to utilize proper personal protective equipment (PPE). From forklift safety to OSHA compliance, education and planning are the best lines of defense for warehouse operators and their employees.

Business leaders in warehousing can do their part to protect workers by implementing a safety plan and sticking to those goals. In warehouse settings, implementing proper safety practices can also help streamline operations and drive business while boosting revenue. What’s more, safety in the warehouse aids in employee retention, as workers are happier when they feel safe.

Here’s what Colorado warehouse operations managers need to know about safety features and requirements, and how to make safety a priority in every aspect of business: 

What’s more, safety in the warehouse aids in employee retention, as workers are happier when they feel safe.

Warehouse Safety Essentials

Warehouses are massive structures, and a lot happens in those walls. As such, implementing proper safety practices in the warehouse is a multi-tiered job, and business leaders should ensure that all of the bases are covered. The process starts from the moment a new employee walks in the door, with managers outlining safe practices and procedures as part of the onboarding process.

It sounds simple enough, but signage is a crucial component of smooth business operations. In warehousing, proper signs and labeling can help prevent accidents, and they may be legally required by OSHA or a local ordinance. All hazardous and dangerous materials on the warehouse floor should be clearly labeled as such, with functional eye and hand wash stations located nearby. Further, employees should be trained on proper use of these safety stations from day one.

Easy-to-read signs are just the beginning when it comes to warehouse safety equipment essentials, however, and business leaders should be prepared to invest in protective gear as appropriate. While some types of PPE are job-specific, such as chemical-resistant gloves and boots for workers dealing with harsh chemicals, others are warehouse industry standards.

Generally speaking, warehouse work requires proactive eyewear, helmets, and proper foot protection, and specific gear requirements should be clearly outlined in the employee handbook.

The True Cost of Workplace Accidents

The machines that keep warehouses up and running present hazards of their own for workers. As such, companies should adopt a strict lockout/tagout system in an effort to keep employees safe. Lockout/tagout systems are intended to safeguard workers from hazardous energy sources and chemicals, as well as malfunctioning equipment, and are a requirement for Colorado businesses that want to stay OSHA compliant.

That’s because, no matter the form they take, safety violations can be costly. Fines for OSHA violations can set business owners back tens of thousands, depending on the severity of the violation, and whether the company is a repeat offender. And if a worker is injured or killed due to a safety violation, warehouse operators may be responsible for medical bills or other expenses incurred by the victim.

For example, a worker injured at HelloFresh’s Aurora facility in June 2021 received company-paid workers’ compensation following the accident, as reported by CPR News. The worker was injured when a large plastic pallet slid off a shelf and plummeted 30 feet onto the warehouse floor. Unfortunately, the accident cost HelloFresh even more: numerous employees have lost faith in the company and feel as though HelloFresh hasn’t done enough to improve working conditions. A union vote is forthcoming. 

Addressing Warehouse Industry Safety Concerns

For Aurora’s HelloFresh employees, glaring safety violations served as a catalyst for change, with workers banding together in the name of worker rights. Yet employees don’t always get along, and unsafe working conditions can compound stress levels among workers even further. Company leaders looking to improve safety measures shouldn’t overlook the potential for conflict among employees, and have a plan in place to address concerns.

When a warehouse facility is experiencing safety issues, for example, visual documentation of the problem and a path forward allows business leaders to maintain transparency and mitigate concerns among employees. Company leaders can begin the visual problem-solving process by defining the issue at hand (such as a safety violation) and brainstorming solutions. Employees can also be involved in the process, especially if the issue is a personal conflict among workers.

Warehouse managers who need additional help creating a problem-solving flowchart or otherwise looking for solutions have several resources at their disposal. The Colorado State University College of Veterinary Medicine & Biomedical Sciences even offers free consultation services to qualifying business owners throughout the state, including warehouse operators. CSU’s consultation program provides safety training and education, OSHA compliance assistance, and more.

Prioritize Safety

Within the field of warehouse operations, there are a number of things that can go wrong. In the pursuit of zero injuries and a safe work environment, business leaders should prepare accordingly, and prioritize safety in every corner of the facility.

 

Noah RueNoah Rue is a journalist and content writer, fascinated with the intersection between global health, personal wellness, and modern technology. When he isn’t searching out his next great writing opportunity, Noah likes to shut off his devices and head to the mountains to disconnect.

 

Thank You, Inflation

Inflation in our economy has reared its ugly head for the first time in over 40 years, at the rate of 7.04 percent for the 12 months ending in December. I hear everywhere from people that it is hitting the pocketbooks of everyday Americans pretty hard. Of particularly hard-hit areas, consider that the consumer price index for food prices was up in December 6.3 percent over the previous year, used car and truck prices are up something like 37 percent with new cars clocking a 14 percent jump, gasoline prices are up 50 percent year over year, natural gas prices nearly doubled in 2021, and housing costs are on the rise — rents, yes, but especially in home building. There are many other sectors posting significant price increases as well, like apparel, appliances and other household goods, and electronics.

What’s fascinating to me about all of this is that inflation has been so relatively low for so long — posting years and years of rates hovering in the 0 to 3 percent area since the early 1980s — that most people under 60 years of age have no experience with inflation, and those of us over that age have gotten used to those mild hits and don’t remember much about the big bouts.

I do, though. Just as I was, as they say, coming of age in 1974, the inflation rate for the year topped 12 percent and was very hard on the populace. That autumn, our very new and unelected president, Gerald Ford, announced a big-deal program called Whip Inflation Now, WIN, and with a rousing speech and programs asked the American people to curtail spending, plant “victory gardens,” carpool, turn down thermostats, and put more money into savings. Also, the White House asked Americans to send in their ideas on how we could all “whip inflation;” in return people were sent a very nice WIN button that would signify how we were on the anti-inflation team. (I wish I still had mine.) The program didn’t work, of course, as inflation continued to surge for another eight years or so, costing Ford the 1976 presidential election and then also claiming his successor, Jimmy Carter, a re-election attempt in 1980.

Each era, of course, has its own causes for inflation, and back then it really began with the end of the Vietnam War coupled with the 1973 OPEC oil embargo, an energy crisis that hit us hard for years. Today it was set off by the worldwide COVID pandemic and the subsequent supply chain issues, both events that have hit the laws of supply and demand very hard, fueled by unusually enormous government spending.

In any case, inflation has always been cast as an economic villain, “hitting” people in the wallet and disrupting everyday life. But in this case inflation may just be the thing that our economy needed.

With the Federal Reserve Bank apparently poised to raise interest rates perhaps as much as four times this year to damper inflation – a less flashy modern day Whip Inflation Now program – we could easily start to see benefits essentially created by inflation. Higher rates will dampen demand for housing and perhaps cool the record hot real estate market, and also cool off demand for cars and other big-ticket items. Prices may not come down, but they could plateau for a time and that will eventually be a boon to us all.

And I am encouraged by the news that computer chip manufacturer Intel is planning to invest $20 billion in two plants near Columbus, Ohio, to make the chips here in America rather than overseas. This move, I believe, is in response to worldwide inflationary constraints and may just be the first salvo in an economic push to move more manufacturing back to U.S. soil and stability after years of movement out of the country. These goods will eventually cost more, but the broader benefits to the economy in domestic production will resonate throughout the country.

So thank you, inflation. We could all use a period of chilling out, taking a breath after years of go-go and more-more, and reassess what we really want. Whip-Up Inflation Now, a real WIN disguised as a problem.

 

Jeff RundlesJeff Rundles is a former editor of ColoradoBiz and a regular columnist. Read this and Rundles’ blog, Executive Wheels, at ColoradoBiz or email him at [email protected]

Launching products in a parts shortage

While it may feel like the dust is settling from the storm caused by COVID-19, the same can’t be said for the effect it has had on supply-chains around the globe.

While the spotlight has shone bright on semiconductor shortages, the fallout has permeated a multitude of industries.

If you’re in the process of taking a product to market, odds are that you are feeling the shockwave produced by global shortages and surging demands.

While large companies have the ability to take risks on part procurement early in the development process and stockpile components, smaller companies are left sorting out how they will hit their milestones and metrics amidst supply-chain disruptions.

As product designers and consultants, we have seen how the changing landscape of the global economy has uniquely effected numerous industries.

It’s been an interesting couple of years that have led to new insights and strategies for helping clients rise above these manufacturing challenges.

The following are three tips for navigating the current supply chain landscape.

1. Building & Maintaining Relationships 

During parts shortages, there is a paradigm shift in the supplier-designer relationship. The suppliers that you may have been pressing to improve costs or timelines can quickly become the same suppliers you are pleading with to help with your challenges when seemingly everyone is inundated with demand.

The way to remedy this is to prioritize positive relationships from the beginning. Reflecting on how your team can be better partners and collaborators with your supply-chain should be a routine exercise.

Unlike other insights we can offer companies, this one is not a switch that can be turned off and on when met with unprecedented times. This is about doing the right thing from the start to set the tone with suppliers and who them that we view them as partners.

That’s why even in a non-pandemic world, our team at LINK takes the time to meet with our suppliers, understand how to reach mutually beneficial outcomes, ask how we can help, and foster positive relationships.

When working with clients who are investing high volumes of time and money into programs and products, we ensure we’re doing our due diligence to invest in critical relationships with suppliers that will enable that program or product to be successful.

2. Rethinking Lean Processes  

Lean or “Just-In-Time” manufacturing has proven an extremely successful model for minimizing overhead costs and maximizing a company’s productivity by reducing waste. This has led to the efficiency of modern manufacturing that we, as product designers and engineers, know and love.

But the model works because the system is predictable. In the current state of supply-chain management “predictable” is not an adjective we would use to describe today’s processes.

This means that (at least for the moment) we need to rethink the “Just-In-Time” mentality.

We recommend taking a multidisciplinary approach to establishing system architecture early in the product development process, so that vetting and procurement of critical components can take place as early as possible in the program.

Understanding what parts and how many will be needed at each stage of development is crucial to avoiding delays due to access to parts.

This parallel path approach certainly can’t be applied to every part in a product, but where it can be employed, this tactic can substantially increase your team’s ability to have the right pieces in place to avoid delays.

3. Multisource Strategy  

It may sound simple, but the legwork behind establishing multiple sources for each component in a design is not a trivial endeavor. Generating, maintaining, and continuing to build on a qualified supplier list is no longer a nice-to-have part of the process.

A qualified supplier is pertinent to ensuring contingencies are in place to protect product timelines. Having an alternate vendor list for each part within a design can dramatically reduce the risk that part shortages will impact your product schedule.

While this point is especially salient in the electrical realm, the same thinking and planning can be applied to mechanical systems.

Understanding the contingencies surrounding each part of the design allows your team to appropriately assign risks for each part and make informed procurement decisions throughout the development cycle.

Although these insights are geared towards the current component shortages in manufacturing, they hold true for any product development endeavor. Applying rigor to supply-chain strategies and process improvements is beneficial even in less-trying times.

There will always be disruptions and hiccups along the way but building a strong team, smart processes and implementing contingency plans will allow companies to put their best foot forward for what is to come.

Ben Ettinger is a mechanical engineer at LINK Product Development with experience launching products in a multitude of industries, from medical devices to consumer electronics and everywhere in between.