10.10 Conclusion

Warehouses are more than storage containers for your inventory. A well-run warehouse network can give you a step up on rivals in terms of customer service and satisfaction. That's why Jeff Bezos at Amazon.com invested in one of the most amazing warehouse operations anywhere on earth, transforming Amazon.com from a clicks-and-order virtual company into a clicks-and-mortar powerhouse. As you strive to achieve world-class warehouse operations, let us remind you of two important facts.

• Optimality is Fleeting: Decision makers often worry too much about designing an optimal network. The fact is that you need to take the deep dive into the numbers to design a competitive network. However, what is optimal today won't be next year. Your business is constantly changing, and so too must your network. For example, Nabisco rationalized its DC network only to be acquired by Kraft. Nabisco's needs—and resources—changed overnight. Build a great network and keep improving your operations.

• Discipline Matters: Hopefully you noticed how important discipline is to great warehouse operations. If you want a sneak peek into whether your warehouse operation is disciplined, you don't even have to go inside. If a receiving yard lacks discipline, with trucks and trailers scattered about, and perhaps trucks lined up outside the yard waiting to enter, you have a pretty good idea that what is going on inside also lacks discipline. Never forget, attitude is contagious. Sometimes you can judge a book by its cover.

  Career Accelerator: High Performers Collaborate and they Learn—Always