I remember some years ago visiting a clothing company in Kettering, Northamptonshire who employed several hundred staff. They had a very large plaque on the wall in the reception area recognising those employees who had longevity of service. I recall that there were about 10 names of people who had worked for the company for more than 50 years, and many who had served in excess of 25 years. Being young, and new to the business world I remember being very impressed. A little later I did win some business from them when they were forced to change their IT systems, as support was no longer to be provided for their hardware. They opted for a simple replacement of their current system with second-hand equipment. Then a few years later I saw a notice in the local paper advertising a liquidation sale of their stock, as they had ceased to trade. Whilst the employee loyalty on both sides is to be commended, I realise now that their emphasis reflected the philosophy of the company – they were living on past glories. The simple moral of the story is that if you do not change you die.  
 
Warehouse operations are coming under increased cost and productivity pressures. Customers want smaller ‘just in time’ deliveries more often to reduce their stock holding. To achieve the cost benefits of buying in the Far East, purchasing departments want to buy larger quantities with longer lead times. Penalties for inaccuracy can be severe, and deliveries to the large multiples have to be exactly on time. Property and staff costs are increasing. The warehouse operator, whether in house or third party, is in the middle and has to try to reconcile these opposing forces.  
 

Howard Turvey MD Proteus Software

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For further information please call Howard on +44 (0) 121 717 7474 or email moreinfo@proteussoftware.com