The aim of all good investments is to provide
the earliest return, the greatest value and the lowest risk
With the recovery from the Covid-19 Pandemic continuing and world leaders working to redefine the constantly changing “New Normal”, the logistics and distribution industry are at the front line, facing the continuous need to innovate. As understandable as this need for innovation might be, most businesses are very careful on how and where to invest. During a pandemic revenue can not be guaranteed and investments must be carefully planned to guarantee the financial health of the business in the short to medium term.
The need to innovate and improve logistic capabilities is as important as the need to making the right investment decisions!
Maintain the course, hoping for the financial situation to improve
vs
Innovate the existing operation to ensure the company’s relevance in the marketplace
There is no such thing as a right or wrong answer to the above options!
It is important to clarify that there often is a misconception regarding what warehouse innovation means. Most often it is associated with highly automated robots and technology components. Therefore, whenever the phrase “warehouse innovation” is heard or read, the usual reaction is to think of high investment cost.
We understand that defining such an initiative is a big milestone and it requires significant time and energy from the business to make this decision. Throughout the years of collaboration with companies of different sizes and across multiple industries, at WACO we have accumulated valuable experience that allows us to connect our customer’s need with innovative methods, processes, technologies and products that are applicable to the Latin America’s market.
IT IS POSSIBLE TO INNOVATE & IMPROVE YOUR WAREHOUSE OPERATION
UNDER THE RIGHT CIRCUMSTANCES
We believe that all warehouse innovation projects must have financial viability. As we drive business value throughout your logistic operation, any of our recommended solutions will answer 3 basic questions that will help you, your project team and the board of directors to validate and support your project initiative:
Based on the above we have developed a White Paper to explain how the definition of a project initiative is not even half of the equation required to achieve success in a warehouse improvement project. Many variables like training, change management, new required employee profile, running costs, spare parts, maintenance, project delays and more are typically not considered or only partially. Failure to consider all elements of the project are likely to result in project cost creep through the project, ultimately costing significantly more than initially estimated.
We recommend to read our ROI White Paper to gain and understand how the ROI can be very different, depending on region and local labor costs.
We can help you define the purpose of the project and develop an objective standard for measuring progress toward that goal: operational efficiency!!
WANT TO KNOW MORE ABOUT ROI?
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ROI Whitepaper
RoI for Warehouse Improvement Projects.
A brief introduction into WACO’s perspective on how local labor costs impact the RoI of technology investment