Facilities planning has be traditionally defined in 6 steps. The point of these steps is to help operational management teams achieve supply chain success. We’ll touch on these six steps below to help you keep your goals on track, and to perhaps your supply chain performance.
One key note is that facilities planning is not only done at the beginning of setting up an operation. These steps are an ongoing process to ensure the success of your facility and the business as the whole.
Business as usual: This is where your organization is probably right now. The different functions of a warehouse probably competes to be the best department in the company. Working collaboratively is not the main concern of each department deep down. The real emphasis of each department is to function as efficiently as possible.
Linked up: This is as obvious as it sounds. The idea of linked up is to remove the boundaries between departments, or more specifically, remove the boundaries between resources. To maximize the effectiveness of supply chain, each individual department must work to achieve the underlining business goals of the organization.
Cleared view: With a clear view, surprises are minimized. Or in other words, negative risks are minimized. With a clear view, the operations team and warehouse management will understand their role and status, and the expectations of ultimately the customer.
Collaboration: Meeting the demands of the marketplace is the result of collaboration between functional groups. Through technology, effective communication, and a well constructed vision, the operations and warehouse management team will certainly do it’s part in achieving success in the eyes of the customer.
Unification: The results of unification of all supply chain activities results in a better business. You’ll experience increased customer satisfaction, reduced costs, and most importantly a integrated complete supply chain thanks to your facilities planning. Remember, unification is not done overnight. It takes time, planning, and implementation.
In summary, effective facilities planning will result in a productive “make-move-store-buy process”. Your supply chain and operations team are critical points of a successful business. The above 6 steps should help keep you organized and focused on areas to improve.