We all know that major problems can result from what might seem insignificant causes. In fact, we have a variety of metaphors for it: the butterfly effect; the camel's nose under the tent; for want of a nail, the kingdom was lost.
But general awareness that it can happen is not the same thing as actual prevention. We have two stories this month that illustrate the case.
Distribution center managers understand full well the risks in things like deferred maintenance of material handling equipment. Ensuring that goods move through the DC and reach the end customer on time and intact requires an operation that runs smoothly, and that requires attention to even the smallest details. Take batteries as an example. In a story for our August issue, Senior Editor Toby Gooley looks at how the smallest oversights can affect battery operations and longevity, which in turn have a direct effect on lift truck performance, which in turn ... Well, you get the picture. Failure to ensure proper watering could potentially lead to overall higher operating costs and operational failures.
In another piece this month, Senior Editor Mark Solomon takes a look at a couple of major cases of freight audit and payment companies charged with defrauding their customers. Once again, it's about paying attention to the details. The warning signs were there for those inclined to look hard enough. One important lesson from the story is that even years-long business relationships require monitoring. The reputable audit and payment companies provide a useful service, one that would be hard to replicate in-house. The story does not suggest acting rashly and trying to do so, but merely taking ordinary business precautions—and maintaining them. Solomon has also compiled useful pointers suggesting just how to do so. Also check out columnist Cliff Lynch's column on the same topic, published in our June issue, offering 14 steps to minimizing financial risk.
There are two other pieces I want to highlight this month. In one, Solomon shows just how far behind the airfreight industry remains in catching up to the digital age. His story provides good insight into just why the airfreight industry has lagged behind other modes and what it is doing to remedy the situation.
In another, we look at what two warehousing companies, Barrett Distribution Centers in Massachusetts and Murphy Warehouse Co. in Minnesota, have done to reduce energy use and cut their facilities' overall carbon footprint. These are investments made not by idealistic environmentalists but by good businessmen—and idealists in their own right.