HOW WINWHOLESALE IS MANAGING ITS RAPID GROWTH
Nearly $3 billion distributor WinWholesale increased its picking efficiency at its Dayton, OH, distribution center by 48% after a facility redesign and the implementation of a warehouse management system. The moves were part of a larger project to accommodate the distributor's rapid growth, according to this article in CRM Buyer. WinWholesale was seeing a rapid increase in SKUs, demanding a move to larger distribution centers, better efficiency and a WMS that would provide real-time detailed data.

"We were using manual pallet jacks, and we noticed that travel time for our case-picking process was extensive," Jeff Porter, manager of WinWholesale's Dayton distribution center, told CRM Buyer. "We also knew our facility processes could be more efficient, especially given projected growth. The systems that worked well for us when we were a smaller company weren't keeping up. We didn't know exactly what to change or how to change it, but there had to be a better way to meet demand and reduce the stress in the warehouse; the constant sense of urgency was increasing as we grew." More...

MABSCOTT SUPPLY CO. GROWS DESPITE PRESENCE OF NATIONAL DISTRIBUTOR
West Virginia-based Mabscott Supply Co. is the last independent distributor of industrial gases in the Kanawha Valley, according to this article in the Charleston Gazette. It goes up against fast-growing $3.2 billion Airgas Inc., Radnor, PA, which is the dominant supplier in the area. Still, Mabscott continues to grow, adding a second location about six years ago and is about to put in a transfilling tank that will allow it to concentrate liquid nitrogen into a shippable form. The moves widens the company's market reach.

The company also will add an oxygen transfilling tank to bolster business with hospitals and other medical clients. The company is not shy in its expansion plans, despite the bigger competition in the region: "We're trying to growth our business and have some critical mass. This is the beginning of us doing this in this marketplace." More...

GAIN CONTROL OVER HEALTH COSTS
At the Ottawa Dental Laboratory, employees have incentive to get in shape. According to this article in IndustryWeek, the dental device maker is implementing the Vitality Wellness and Incentive Program, which gives employees redeemable "Vitality Bucks" for each test, health program and measurable improvement they make. The results? The company saw a 10.2% decrease in premiums in 2006; through October 2007, the company saw an 8% decline in costs. Ottawa Dental pays for 80% of the employee's premiums.

Another company, Dow Chemical Co., has set a goal of 10% fewer health risks in its global employee population by 2015. To do this, the company has integrated a "Healthy Workplace Index" into its business goals, involving management in responsibility for overseeing the program. What have you done to move the health of your employees to the frontlines? More...

THE FULL PICTURE ON COSTS IN CHINA
Here is an interesting analysis by Forbes of costs to manufacture in four locations: San Jose, CA; Guadalajara, Mexico; Eastern Europe; and Shenzhen, China. The numbers take into account not only direct labor costs, but also factory expenses, manufacturing overhead, freight, materials and rent. The results are not surprising, with California being the most expensive, and China the least.

However, the costs do not take into account the cost of freight to the customer's location, which can be substantial and is increasing with the cost of oil. That's why some manufacturers are moving their production back to Mexico if their customer base is in North America. More...