Using two warehouse guys, we could ship over 4000 SKUs to over 120 customers, and have parts coming in from over 3000 suppliers globally
we did not use a lot of automation, or any robotic, or conveyor belt type set up.
Our secret was two things
Communication
Systems
We did the same thing the same way every time, and the systems were set up to take into effect all the upcoming processes and set the next step up for success... like dominos.
we automated a lot of the communication, notifications, and the sharing of information.
We made it possible for people to access use and move forward and information of the 10 times faster than they normally would.
We did this by
- reducing search,
- increasing access,
and using what I called the pull information system
It’s amazing how important communication and information are in a firm.
how people share info, how they use email, how they talk in person, what they send by slack and what they stop by your office for, what’s discussed in meetings, how people use the phone, where files are
I made slight fib. I concentrated on GM per Employee.
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It isn't to make things easier
It isn't because is new or tech-forward
It isn't an end of itself
Its a tool... One of many...
For the purpose of building Capacity
As business expands, your resources become more scarce.
You have less time
- to do all things you want to do,
- to make the decisions you need to make
- to service your customers the way they deserve to be serviced.
You can buy your way out of this by hiring people and buying equipment.
However, the paradox of business is this - the faster you are growing, the tighter cash usually is.
So the businesses that need cash most, have it least!
When looking at a procedure, there are tasks that must be done at that moment, and ones that can or are done at the moment.
By removing all "external" tasks and delegating or move to when there is available time, you create a more steady work flow
2 Ex. Shipping a SKU
When shipping a SKU we need to enter the customer we are shipping to. We can't do this earlier because we just found out where to ship it (a customer order).
We have repeating bills for all predictable bills like rent.
Weekly Time Saved: 15 min
If a bill never changes, its easy.
Enter the amounts, assign to the proper account, and set it up to repeat.
We pay this by check, so we have it auto approve now and get sent to the "to be paid section"
If a bill does change (like the payroll or auto loan payment), we setup a repeating bill but have it go into drafts with $1 dollar for each line item (state payroll tax, auto interest, etc).
Then, in a monthly checklist, we review draft bills and fill in the correct amount.