According to new survey reports I’ve recently come across, labor is still the highest operating cost in distribution center/warehouse environments, taking up 50% to 70% of a company’s warehousing budget. As you might expect, these surveys also note that it is essential to find the right technology to maintain high productivity levels and keep labor management cost-effective.

Many (although definitely not enough) distribution companies are looking at or planning to upgrade or adopt technologies such as picking robots, palletizing robots, automated packaging systems and automatic guided vehicles to streamline operations and improve capacity use. Some have planned more basic moves, such as distribution facility redesign, incorporating new picking or product slotting methods.

Now, I’m not suggesting here that warehouse operational costs are the only operating metric challenging us and may currently be on your crisis list — and one that you may wish to positively impact. Frankly, what I have observed, though, is that many companies — particularly those getting acquired — fall into a general category, what I describe as the “we just didn’t keep up” category.

Four decades of change acceleration

Remember the 1980s? Significant global competition by the Japanese auto makers and a new buzzword: change.

In the 1990s, the need to change accelerated and the new buzzword was reengineer. Everyone seemed to be reengineering processes.

And in the 2000s, the need for change accelerated — it seemed to fast track — once again. The new buzzword: transform.

Today, reinvention puts everything on the table. All assumptions are challenged in an effort to tackle major disruption, and new opportunities are presenting themselves in quantum and accelerated ways.

For those of you who have been following our “MCA Talk” monthly newsletter, we’ve been running a series of thought-provoking articles (five so far) on the topic of reinvention. Let me know if you would like to be added to our list; I’ll even send you some back issues to get you quickly up-to-date on the reasons, the “why and how,” reinvention in your own company is such a critical competency to master.

Why reinvention matters

Reinvention focuses on processes, technology and people. It’s a process of fundamentally changing something to create a new version of it — a company, even a career, a person or a product — manifesting new and improved attributes. So, it goes beyond simple improvement, or so-called incremental improvement. It’s about stepping back, rethinking core assumptions and making bold shifts in identity, strategy or operations. 

For you, it might mean one or more of these:

Shifting from one business model to another;

Adopting a radically different strategy in response to market disruption;

 Redefining the company’s culture, purpose or brand;

Transforming how value is delivered to customers;

Healthy cycles of planned renewal: short cycles, maybe as often as every two to three years as a bare minimum! That builds a habit, a culture of reinvention.

So, reinvention is not a one-and-done thing, some one-time project or event. It’s nonstop continuous improvement. It’s individual and organizational change — accelerated!

Reinvention, regardless of whatever threats you encounter, can constantly reshape your world, turning disruption (whether immediate threats or recognizing new opportunities, both of which are always present) into advantages. Yes, it is a structured approach to overcoming distribution challenges and driving lasting success; proactive-planning, agile execution and effective communication.

Now, I don’t want to bore you with my own problems but stick with me. Even my own industry — consulting — is experiencing its most profound transformation in decades. The shift has surely become clear to me: Clients aren’t seeking advice, they are demanding partners in transformation. It’s what I’m seeing on the ground – and the evolution is real. Really, not that much different than what you might face with your own customers and suppliers, maybe?

Yesterday, it was delivering reports and frameworks (content delivery);

Today, it is co-creating and driving implementation;

Tomorrow, it means becoming partners in transformation, with shorter transformation cycles.

So yes, I’ve had to adapt, too. You see, I’ve been on my own reinvention journey!

The critical challenges we all face

1.    Value creation has shifted. My clients — your customers and suppliers — want more than information; they want partners who can turn insights into impact.

2.    Implementation is the new currency. Strategies gathering dust in drawers become relics. Today’s success is measured in executable solutions and tangible results that get recognized.

3.    Relationships are transforming. Staying with my analogy here, the line between me and my clients is blurring. My clients seek long-term allies who drive real change.

How do you position yourself in this new business landscape where process expertise and implementation capabilities matter more than content delivery?

Isn’t it about leading, where impact matters, even more than adapting to change?

And, while we are talking about leading, shouldn’t reinvention work and provide an effective leadership pathway for both individuals and organizations? It’s not about one person leading the charge! It’s not only meant for owners, CEOs, presidents or other senior managers. It requires a team focused on reinvention.

Taking the challenge

With an open mind — and mindset — reinvention can be broken down into a structured and practical roadmap to help build highly adaptive organizations and individuals positioned to thrive in today’s turbulent environment, while accelerating change. Our “MCA Talk” articles have begun to address this:

Defining the problem or opportunity; 

Testing new approaches (“tailoring the tactic”);

Not ignoring hierarchies; engaging all levels of business, collaboration, innovation and employee empowerment;

Measuring results.

So, ride along with us as we expand the reinvention community, where we’ll continue to provide topic coverage and our own unique thought leadership to a movement that we are up to our eyeballs in.

Invite reinvention into your own life and company because nothing is going to stop the change around you. 

Better stay tuned!