Summit Steel Buildings understands how crucial operational and storage space is. The consequence of limited space affects the entire business of the organization – from production, fulfillment, customer experience, marketing and operations, all departments of the organization. Before exploring adding more space by building, you must first recognize the signs that you have exceeded your current capacity.
Work areas become cluttered, inventory and supplies become harder to locate; everything gets cluttered and disorganized no matter how often your team sorts it out. At some point, you’re going to have to grow. Offsite temporary storage is expensive and impractical. Moving to another location requires weeks or months of business interruption – and considerable cash to cover immediate additional costs.
Three signs that you need more space:
1. Rising sales strain order delivery
Effective marketing and sales activity produces orders that must be delivered in a timely manner. This is to balance commercial demand against operational capacity requiring space. Declines in production and warehouse productivity can be measured by the increase in time required to fulfill and deliver orders. It can also be measured by increased wait times for distribution loading, product shortages, longer processing times and lower production levels. Today, customer expectations have increased due to faster delivery times and more tailored shipping experiences. The consequence of losing production, fulfillment, and warehousing space is that you will start losing customers to delays.
2. Inventory records are continually out of date
The inventory count is essential for the company’s sales and production. Sales teams need to understand what is available and ready to ship so they can drive future orders. Purchasing decisions are based on knowing the current SKU and supply levels with enough lead time to order more materials before they run out. Production delays are inexcusable. On both sides of the supply/demand equation, if warehouses and production facilities are overcrowded, proper measurement becomes difficult and produces inaccurate numbers. Senior management will not be able to plan and make decisions with precision. Customers ultimately won’t tolerate out-of-stock delays – they’ll just place an order with a willing competitor.
3. You need to continually hire staff
Adding employees means more sales are coming in and more people are needed to manage them. However, if the hiring of new employees is due to turnover, it is a sign that people are not happy – and working conditions are the main contributors to job satisfaction. As frustrations mount, staff express their displeasure with their feet. Turnover is one of the main indicators of poor management. As your business grows, the foundations that support it must also grow to provide the people doing the work the space they need to do their jobs well.
When you need to add more work space, Summit Steel Buildings is ready
As a leader, you want to recognize the signs early before the financial consequences set in. As your business grows, the smart and cost effective solution is to increase your capacity by adding to your existing footprint with the addition of a new adjacent steel building.
About Summit Steel Buildings
Summit Steel Buildings is a leading fabrication and construction supplier to the pre-engineered building industry. Their engineering team provides complete stamped engineering drawings for permits and construction across North America. They fabricate their commercial and industrial steel buildings in several factories strategically located on the mainland to ensure that they are able to deliver inland and to any port on the east and west coasts. Please visit www.summitsteelbuildings.com.