It’s time for a reinvention
Whether driven by crisis or opportunity, distributors should embrace healthy cycles of planned renewal and implementation.
According to some new survey reports I’ve recently come across, labor is still the highest operating cost in distribution center/warehouse environments – taking up 50%–70% of a company’s warehousing budget. As you might expect, these surveys also note that it is essential to find the right technology to maintain high productivity levels and keep labor management cost-effective.
Many (although definitely not enough) distribution companies are either looking at or planning to upgrade or adopt technologies such as picking robots, palletizing robots, automated packaging systems, and even automatic guided vehicles to streamline operations and improve capacity utilization. Some have planned more basic moves, like distribution facility redesign, incorporating new picking and/or product slotting methods.
Now, I’m not suggesting that warehouse operational cost is the only operating metric that challenges us and may currently be on your crisis list, and it may be one that you wish to positively impact.
Frankly, what I have observed, is that many companies – and particularly those that are getting acquired – fall into what I describe as the “we just didn’t keep up” category.
Let’s talk about an approach to dealing with the labor-bot conundrum and myriad other issues so you stay out of that bucket.
Four Decades of Change Acceleration
Remember the 1980s? Significant global competition by the Japanese auto makers and a new buzzword: “change.”
In the 1990s, the need to change accelerated and the new buzzword was “reengineer.” Everyone seemed to be reengineering processes.
And in the 2000s, the need for change accelerated – it seemed to fast track once again. New buzzword: ‘transform.”
Today, “reinvention” puts everything on the table and all assumptions are challenged in an effort to tackle major disruption. New opportunities are presenting themselves in quantum and accelerated ways.
Why Reinvention Matters
Short and sweet: Reinvention focuses on processes, technology and people. It’s a process of fundamentally changing something to create a new version of it, manifesting new and improved attributes. And “it” can be a company, even a career, a person, or a product.
So, it goes beyond simple improvement, or so-called “incremental improvement.” It’s about stepping back, rethinking core assumptions, and making bold shifts in identity, strategy, or operations.
For you, it might mean one or more of these:
- Shifting from one business model to another.
- Adopting a radically different strategy in response to market disruption.
- Redefining the company’s culture, purpose, or brand.
- Transforming how value is delivered to customers.
- Healthy cycles of planned renewal – and possibly short cycles as often as every two to three years as a bare minimum! That builds a habit, a culture of reinvention.
So, reinvention is not a “one and done” thing, some one-time project or event. It’s non-stop continuous improvement. It’s individual and organizational change – accelerated!
Reinvention – and the “why” and “how” of it – regardless of whatever threats you encounter, can constantly reshape your world. It can turn disruption into advantages – whether that disruption is in the form of immediate threats or the presence of new opportunities, both of which are a constant. Yes, reinvention is a structured approach to overcoming distribution challenges and driving lasting success through proactive-planning, agile execution, and effective communication.
My Analogy
Now, I don’t want to bore you with my own problems, but stick with me. Just as an analogy: Even my own industry – consulting – is experiencing its most profound transformation in decades. The shift has surely become clear to me. Clients aren’t just seeking advice – they are demanding partners in transformation. It’s what I’m seeing on the ground, and the evolution is real. Really, not that much different than what you might face with your own customers and suppliers.
Yesterday: It was delivering reports and frameworks (content delivery).
Today: It’s co-creating and driving implementation.
Tomorrow: It means becoming partners in transformation – with shorter cycles of transformation.
So yes, I’ve had to adapt also. You see, I’ve been on my own reinvention journey!
Critical Challenges We All Face
Value creation has shifted: Your customers and suppliers want more than just information. They want partners who can turn insights into impact.
Implementation is the new currency. Strategies gathering dust in drawers become relics. Today’s success is measured in executable solutions and tangible results that get recognized.
Never lose sight that relationships are transforming. Customers and suppliers seek long-term allies who drive real change.
Critical Questions
How do you position yourself in this new business landscape where process expertise and implementation capabilities matter more than content delivery?
Isn’t it about leading? When impact matters, reinvention is about more than just adapting to change.
And, while we are talking about “leading,” shouldn’t reinvention work and provide an effective leadership pathway for both individuals and organizations? It’s not just about one person leading the charge! It’s not meant just for owners, CEOs, presidents, or other senior managers. Distributors need a whole team focused on reinvention.
With an open mind and the right mindset, reinvention can be broken down into a structured and practical roadmap that helps build highly adaptive organizations and individuals who are positioned to thrive in today’s turbulent environment – while accelerating change.
Practically, this looks like:
- Defining the problem or opportunity.
- Testing new approaches and tailoring the tactic.
- Not ignoring hierarchies; engaging all levels of the business in collaboration, innovation, and employee empowerment.
- Measuring results
Invite reinvention into your own life and company, because nothing is going to stop the change around you. Better stay tuned!
Howard W. Coleman is principal of MCA Associates, a management consulting firm that works with wholesale distribution and manufacturing companies seeking and committed to operational excellence. Contact him at hcoleman@mcaassociates.com, 203-906-7268, or visit www.mcaassociates.com. This article is an extension of topics he’s been covering in the “MCA Talk” monthly newsletter. Send an email to subscribe or back issues.
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The May/June issue of Industrial Supply magazine features an in-depth cover story about the ISA's Veterans Empowerment Network. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
