New distribution centers (DC) reach roughly 70 percent of design expectations during the first year, an estimated 90 percent during year two, and finally, around 100 percent by year three. Sounds easy to achieve, but for complex, new, green-field operations it isn’t – especially when you consider that during the first couple of months, a new operation usually suffers through an estimated 40 percent performance level while everyone is still trying to find the lunchroom.
The foundation for a successful distribution center startup is a program of focused, continuous, incremental improvement. Specifically, there are seven key areas you should zero in on during year one.
