Material Handling Management presents results from 1st Annual Census of Distribution

CLEVELAND - Material Handling Management magazine has released the results of the first annual Census of Distribution, a research study conducted in partnership with The MPI Group (Cleveland) and Industry Insights (Columbus, Ohio). The study offers a general profile of distribution activities in the United States today, current performance levels and managers’ top concerns for 2006.

“In order to manage inventory better, operations managers need to measure how they are doing and compare their performance to peers and competitors,” said David Drickhamer, Editor in Chief of Material Handling Management. “The Census of Distribution offers a snapshot of current industry performance as well as current practices that can help guide improvement initiatives.”

Over 450 managers responded to a survey distributed over the summer. They represent a cross section of U.S. supply-chain activity, including manufacturing, distribution, wholesale, retail, and third-party logistics providers. The first installment in a series of articles reporting the results of this research effort, including detailed charts and tables, appears in the November issue. It is also available on the MHM website (http://www.mhmonline.com/cod).

Here are some highlights from the initial report:
· When asked to indicate what external factors had the biggest negative impact on operations over the past 12 months, more than three-quarters of distribution center managers singled out healthcare costs.
· Managers reported that process improvements followed by information technology and new capital equipment have had a positive impact on distribution facility activities over the past 12 months.
· Almost two-thirds of respondents say they believe their facility will have to expand over the next three years, and relatively few managers expect their operations to be sold or downsized in the near future.
· Based on square footage of storage space, retail and 3PL distribution facilities tend to be larger, with a median size of 105,000 sq. ft. and 100,900 sq. ft. respectively. This compares to typical storage space of 50,000 sq. ft. for all survey respondents.
· Almost half of distribution facilities in the United States have been under current ownership for more than 10 years. Facilities in the Northeast are the oldest; over half of those in this region have been around for 20 years or more. This compares to a median age of 14 years in the South.
· Three out of five distribution site managers report that they have to manage some degree of seasonality in their markets.
· Looking at the number of parts and materials that have to be handled, over half of distribution facilities manage 5,000 or fewer stock-keeping units (SKUs). One out of five locations has to keep track of more than 25,000 SKUs.

More detailed data and reports— including custom benchmarks for individual facilities, access to the
full data set, and in-depth analysis — is available from The MPI group at http://www.mpi-group.net/ or
1-800-603-2272.

About Material Handling Management
Material Handling Management (http//www.mhmonline.com) is published monthly and brings together a community of Supply Chain and Material Handling professionals to inspire and drive their quest for operational excellence. MHM explores the issues, trends, products, technology, and best practices that enable Material Handling managers to succeed in today’s hyper-competitive global economy.

About The MPI Group
The Manufacturing Performance Institute, is a Cleveland-based research organization specializing in research development, analysis and communications. More detailed data and reports— including custom benchmarks for individual facilities, access to the full data set, and in-depth analysis — is available from The MPI group at http://www.mpi-group.net or 1-800-603-2272.

About Industry Insights
Industry Insights has been serving the research needs of trade and professional associations, dealer organizations and other affiliated groups since 1980. The company provides high-quality research services which assist such organizations in better fulfilling the informational and educational needs of their affiliated members. Industry Insights conducts over 100 research projects each year in the areas of financial performance, compensation and benefits, member needs assessment, best practices, monthly and quarterly trend tracking, and educational presentations.


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