COST CONSIDERATIONS

For some companies, cost can be a deterrent to implementing a YMS. Today's tight economy can make it difficult to justify the investment. But while a YMS used to require a significant cash outlay of up to $500,000, costs have come down, putting a YMS in reach for many companies. Additionally, many businesses can quickly achieve return on investment. 

"As a function, yard management tends to get overlooked, compared to warehouse or transportation management," says Dr. Aleks Gollu, founder and chief technology officer of PINC Solutions, a Berkeley, Calif.-based company whose clients include SC Johnson, Kraft Foods, and Cost Plus World Market.

"Warehouse and transportation management are low-hanging fruit-direct budget line items people can track," Gollu continues. "Yard management, however, can be a black hole-the part of the supply chain network where inefficiencies persist."

A closer look at inefficiencies buried in the yard reveals significant impact on the entire supply chain. "When drivers arrive at a facility with a trailer, they often spend two to three hours checking in," Gollu notes. "But driver time is at a premium-the average driver is worth $50 per hour. Inefficient yard management that causes you to detain a driver longer than needed costs money."

Please visit Inbound Logistics magazine website for more information.