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Optimizing Every Square Foot

A primer on facilities management

A good auditor sees more operations than any facility manager in a given year, according to Gombas, so “auditors are in the best position to provide guidance to operations when they see something that could be done better. The auditor should offer assistance freely to make the operation run better, safer, and easier.”

In addition to their ability to offload peak volume from a facility, LSPs can provide supplemental labor resources, storage capacity, and technological support. Investments are leveraged across multiple clients who use LSP capabilities on an as-needed, variable cost basis. The logical time to use an LSP is when your company does not have a core competency in operating facilities or the capital to do it right, suggests Treacy.

SUMMARY
Facilities are the critical nodes in a fresh produce supply chain. They play an essential role in serving customers as growing seasons and consumption are not perfectly balanced, the market for pre-cut or packaged produce is growing, and demand is geographically dispersed. Properly positioned facilities allow companies to process and temporarily store fresh produce for subsequent distribution.

As discussed, capable facilities are not simple sheds or basic warehouses. Instead, they are climate-controlled buildings whose management teams follow GMPs and deploy technology to ensure a safe, secure, and productive operating environment. The infrastructure, along with appropriate policies and well-trained employees, help facility managers overcome key challenges and minimize product risks. Ultimately, these facilities contribute to supply chain excellence and customer satisfaction.

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Dr. Brian Gibson is Wilson Family Professor of supply chain management at Auburn University and a former logistics manager. He is coauthor of Supply Chain Manage-ment: A Logistics Perspective (9th ed.) and active in supply chain executive education, research, and consulting.