5 Steps For a Successful Peak Season – STEP 4

As we had learned in step 3 – Training, even though it is listed as the third step, it is still an extremely important detail to a successful peak season. With that said, this next step, safety is not only just as equally important as training but in fact, they go together hand in hand.  Safety is always a challenge in the workplace but then add in temporary workers and getting them to buy-in to your safety program is even more of a challenge.  Then, if that’s not enough include young workers, ages 15-24 and it will be a trial by fire.  Even if the temporaries receive safety training through the temp agency, you’ll need to reinforce it even further through your own safety orientation including clearly spelling out the consequences of not following safety rules including those infractions that’ll get them escorted off the premises immediately. (Please note for the purpose of clarity in this article, when I speak of safety I’m also including sanitation as cleanliness is part of safety.)

STEP 4 – Safety

To help make this more manageable for you and easily digestible for temp workers, break safety down into different levels/categories of skills and knowledge.

General safety for all (orientation) – this is safety information you want everyone to know.  Evacuation plan including route and assembly area; type of signal used to alert of emergencies (do you use bells, horns, whistles, etc.); required wear needed to be in the general area like appropriate clothing, hairnets, beard-nets and other general P.P.E. like bump caps, safety glasses, steel toe shoes and ear plugs; use of pedestrian ways;  cell phone use while working; keeping work area free of clutter and debris;  where to place cardboard, plastic and other trash; not using boxes and product in lower racks as stepping stools to reach upper racks; how to report an accident, dealing with liquid spills or other hazards; signage; do not touch let alone operate any machinery or equipment without being cleared to do so by management.  I know temp agencies want their people to report accidents to them but I’ve always insisted that they tell us immediately first so we are aware of any issues or hazards and can ensure proper treatment quickly.

Specific safety  – this would focus on the area and type of work the temp has been assigned and what equipment they’ll be using.  Use of tuggers, forklifts, manual and electric pallet jacks and other vehicles are always a safety concern. Take the time to watch them in action after their training is completed.  For minor concerns coaching will help greatly but I strongly reccommend a zero tolerance when it comes to horseplay or willful acts by temporary employees.   Another specific area would be use of the compactor and banding of bales for recycling.  Only trained temporaries should be allowed near the machine if it is so decided.  Even if someone says they had previous experience using the equipment, still make sure they’re properly trained by your standards before being allowed to operate it.  Step ladders, stairways, mezzanines and any other means of travel within the building should also be a safety concern.  Don’t take it for granted that temporary employees know how to use those modes properly and that they fully understand any associated hazards.  I worked in a large plant that used man-lifts to get up and down the 9 stories.  We had an outside contractor come in for a construction project who the company assumed knew how to use the man-lift.  He tried to save time and bring his tools along on the man-lift and fell, breaking his ankles, wrist and ribs. If they will they be working near Conveyor belts, again make sure they’re aware of the associated hazards and know where emergency shutoff buttons are located and how to use.  Will they be operating mechanical pallet dispensers, shrink wrap machines, they need to know and understand L.O.T.O. for dealing with jams or who they need to contact and how.

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Bottom line, for a successful peak season look at each job a temporary employee will do as if it’s you first time and see if there are hazards lying in wait and don’t assume they’ll recognize the hazards on their own.  When you clearly communicate like with anything else, most workers will learn and comply but you will also find those gems out there who’ll keep you on your toes.  I once had a temporary worker, trying to impress me with his enthusiasm, climb up the side of 5 levels of racking like an acrobat to retrieve an item off the top. Needless to say I was not amused.

Next installment – STEP 5 – Leadership

5 Steps For a Successful Peak Season – STEP 3

Even though this is presented as the 3rd step in the series, you should never under estimate the impact of training on your operation as it is a very critical element. Training as with communication works best when it’s delivered consistently, concise and with conviction. This goes for all types of training from forklift certification to safety meetings to emergency evacuation procedures. If you treat training as a joke, that’s how it’ll be perceived and what you’ll get. This is your opportunity to set the tone in your house.

STEP 3 – Training

You know what jobs you’re filling with the temporary workers, now gather all the written procedures, SOP, descriptions and policies that cover those jobs and any other pertinent company policies and prepare your training plan. It is extremely important to have this information on hand and readily available not to mention a great habit to develop, reviewing and/or updating job descriptions, procedures and as well as conducting a hazard analysis at least once a year to keep your workers safe, practices current and regulatory obligations filled. Get your stuff printed and assembled and rehearse giving the training. Decide what kind of handouts, videos, power-points or other media you’ll use in your presentation. Don’t forget to include checklists, PPE that’s required and how to properly wear it, what materials are recycled or tossed, procedures on reporting and handling of spills, injuries, forklift use, sanitation and even include breaks and lunch periods. This is also a great way to get your staff involved in the training by having them demonstrate how to wear PPE or do a LOTO or any thing else you want to show.

Depending on your location it may also be a big help if you had the training material translated into the predominate language of the temporary workers. Some workers may speak english much easier than they can read it and this is information you want to make sure you get across. Remember, even though these are temporary workers they are still human beings and should be treated with the same respect as anyone else. I was the day shift manager at one place where my boss the D.C. manager would send temps home for extremely minor offenses as he patrolled the time clock area like a mad hen protecting her nest. Barking out their infraction as he pulled their time card and told them to go home. I would cringe with each one, “Your a minute late, go home”, “your shirt is not tucked in, go home.” It drove me nuts trying to plan the day while losing staff even before the shift began. Needless to say as he continued his campaign for crimes that were never explained upfront let alone written down anywhere he also sabotaged our relationship with the temp agency. Don’t ever hesitate to run your operation the way you see fit but make sure to be up front with workers and explain the rules clearly including the consequences if the rules are not followed but make sure they’re reasonable and not unattainable. One last comment on respecting all temporary workers. Even if their first language isn’t english that doesn’t mean they are any less intelligent and you never know who’ll surprise you with a great idea to save time and money for the operation.

          witzshared.com

witzshared.com

Make sure to document all training by using a sign-in sheets and make sure all employees attending sign to acknowledge their attendance, attach copies of the training material used for that meeting and keep for your records. Well trained employees do impact your bottom line and can lead to a well executing, sustainable workforce.

Next installment – STEP 4 – Safety

5 Steps For a Successful Peak Season – STEP 2

 

Now that you have Staffing under control, (SEE STEP 1) you can focus your attention on the next important step, storage. Seasonal items are always an interesting collection of flavors, (pumpkin, eggnog, gingerbread and peppermint), new and unusual food products, new electronics and premiere of other household goods, all making their annual appearance. The good news is many of these incoming sku are only temporary items for the season and will be moving fast over a short period of time.

STEP II – STORAGE

Depending on the orientation of your warehouse or facility cross-docking is a great way to temporarily store product without taking up valuable storage space in the racks. Cross-docking is basically taking product coming in and instead of putting it away into storage just keep it on the loading dock for shipping that day or the next. Begin by looking at upcoming shipments a few days out and the quantities needed and then look at the receiving appointments and quantities coming in. If you’re using a WMS you should be able to flag those incoming purchase orders so the product stays on the dock after being received for immediate shipping whether you’re loading your own trucks or preparing for shipping LTL. If you’re in a strictly Manufacturing environment, most orders especially in food manufacturing are made to order. As the order is produced especially those seasonal ones and brought to shipping, place them right on the dock and ship them out. Be sure to set up locations in WMS for holding the product on the dock so everyone is aware the items are for orders shipping. It also doesn’t hurt to have pre-made labels handy to place on the pallets also alerting everyone to what they are and how they’re shipping.

Renting/leasing trailers is another storage alternative however the down side is sometimes things get lost. Don’t lose track of what you have out there and stay on top of it. Give the trailer an assigned location, (usually the trailer number so you can find it) and an accurate inventory of it’s contents. There is nothing worse then having a yard full of trailers and not knowing which one has what you’re looking for. If possible keep only one sku in a trailer and if you store 2 sku keep them on opposite sides of the trailer from each other since you don’t want to have to move product to get to other items behind them. The chance of damages greatly increases the more you move them. If you need to keep things cool, refrigerated trailers are also available for rental but don’t recommend them for extended period of time since fuel usage will add to the cost of operation.

     warehouseflow.com

warehouseflow.com

Even if you are a small operation and can’t do either of the above another fallback to help you with storage is to place the extreme fast moving items in large bays closest to the loading dock. If need be double the number of bays used to hold more product for picking and shipping to reduce the number of replenishments needed. If you load full pallets keep them above the bay you chose as a pick location for quick retrieval. If your product is not perishable and you have good weather as well as a secured parking lot you can store product outside and remember as I said before, set up temporary locations in your WMS and don’t lose sight of inventory.

You can also pay someone else to hold and ship your product. A third party logistic (3PL) operation can store and ship orders directly to your customers from their location for cents per case per day or what ever agreement you make. You just need to make sure they have a continuous supply of your product and hope they care about it as much as you do as well as have a very good inventory control system in place.

No matter how many items you need to store and move in your warehouse, never compromise safety no matter how crowded things get. Don’t ever use pedestrian walkways for storage of product as this only forces people out of using a protective area and right into the flow of traffic and a possible accident. Don’t put product in the aisle-ways or block pick areas and storage racks with product. Why slow down your staff and make them squeeze around stacked pallets of product with their lifts or riding forks and it is more likely to lead to increased damages and make moving items off the upper racks very difficult and dangerous. Above all don’t ever block emergency exits, electrical panels and fire extinguishers even for a short period of time. Those are bad habits you never want to get into.

Next installment STEP III – Training

 

5 Steps For a Successful Peak Season – STEP 1

It’s the beginning of August, those lovely dog days of summer, it’s hot, it’s slow at work and folks are away on vacations. However this is not the time to kick back and relax since before you know it, the seasonal rush for goods and services will be upon you and your warehouse will be fully engaged as the home entertaining season begins with Halloween and then right on through Thanksgiving to Christmas and the New Year. Will you be ready to handle those peak season orders? Chances are if you don’t already have a plan or working on one right now you may not be prepared to keep those service levels your customers are expecting.

When business peaks you will be challenged by staffing issues, storage space limitations, increased number of orders to process, increased demands on equipment usage all while maintaining worker safety and sanitation standards. It sounds like a lot to deal with but this all can be handled expertly and professionally. First let’s break this down into steps and examine each one more closely.

STEP I – STAFFING

This is when having established a great rapport with your sales and marketing departments comes in handy. You can always get a good idea on the projections of units to be sold or manufactured during the peak season from them. Also find out what seasonal products will be available during this period and the duration, what other pricing specials and the anticipated movement as well as any other promos or combination promos or brand new items. Some customers like and are offered to buy mixed pallets of goods for promotions. A great example for around the holidays would be a promotion with a mixed pallet of light brown, dark brown and powered sugars, or in the summer a mix of catsup, mustard and pickle relish. This is important since you’ll need to plan on labor to build the projected number of pallets needed. If you’re not on a sales/marketing distribution list just ask to be added.

Now you can begin to determine your staffing needs and whether you may be able to handle the seasonal rush by going with your current staffing level and working extra hours or shifts. This is not a bad solution but be careful not to push people to far as increased work hours can lead to fatigue and an increased number of accidents. Another issue to consider if you do go this route is the tendency to sacrifice housekeeping and sanitation when it gets busy. Don’t allow it to happen since it’ll become another thorn as again the incident of accidents can increase due to trips and falls. Also consider the increased hours of usage on the equipment and the associated maintenance and charging times. Nothing worse than people standing around because the equipment is down or charging.

However, if you decide you do need additional staffing, first determine what jobs are they going to do? Picking orders, packaging, replenishments, sweep? Speak to your regular staff and get their input on where help would be most beneficial. How much training do you want to do and how. What skill level do you want in the workers? Using a temporary employment agency to place seasonal employees will greatly help with staffing but don’t put all your eggs in one basket and work with at least 2 different agencies. Get to know your representatives at the temp agency and invite them to a tour of your facility so they can see first hand the various kinds of jobs and working conditions. Make sure to give a very thorough job description along with percentages of bending, stooping, standing, and so on in a typical 8 hour day along with the estimated weights of items that will be handled. Also supply the temp agency a copy of your safety standards that all your employees get during orientation, and other policies on attendance, tardiness and any tools or equipment including PPE like steel toe shoes that are required. Also ask to see what kind of safety training they offer their temps. Some just show a video and some a video followed by a multiple choice question test. It’s not the greatest engaging safety training but you can build on what they offer. Think what kind of previous experience would make them attractable for you and will there be opportunity to offer them regular employee status at any point? Be sure to track any issues that may arise with temporary employees, their response on issues, turnover rate, quality of employee, attendance and did they deliver on the number of people you requested and were promised? You can use these items as a report card to measure that agencies performance and justify whether you want to continue doing business or not.

You can also make training easy by putting everything together now, while it’s slow season and practice on your staff and make sure to listen to their feedback. We’ll go deeper into training in a later step.

I’ve used both methods in dealing with seasonal peaks, separately and at times little of both. Just be prepared for everything and anything when using temporary employees. Even though most agencies do a fantastic job of screening applicant’s sometimes a real pill will get by. I came in one morning and a temp worker was immediately pointed out to me since he was taking an incredible amount of time picking one order. I pulled him aside and after speaking with him realized he was very inebriated and to my surprise he admitted it. I thanked him for being honest and politely declined his offer to have a snort. Since he had no car I sent him home in a cab with his bicycle in the trunk and billed the Agency for it.

Next installment STEP II – STORAGE

Just Putting It Out There – People Are Assets

             Witzshared

Witzshared

When the opportunity presented itself for us to visit a foreign land,  we immediately said yes!  Taking a trip overseas is so cool since first, it gives you the chance to bore and torture family members and friends with daily posts and pictures on facebook of your travels accompanied with cute anecdotes on interactions with the locals!  Second and also the best reason, it’s a fantastic opportunity to meet new people in a different setting, who have a different culture and use a different language.  When our trip to Spain finally came to an end, what struck me the most was that there is really no difference between us.  Except for language, they are people just like us, with the same hopes, dreams, and desires.  They are cab drivers hustling for fares, wait staff hovering and taking orders, teachers leading classes, bankers and students all using buses, cars and mopeds to and from work.  As an Italian tour guide one told me several years ago on my expectations in Rome, which also applies in Spain and France, “It’s not better, it’s not worse, it’s just different.”

 

Tapas 24, Barcelona, Spain

Tapas 24, Barcelona, Spain

After several days of eating my way through Spanish tapas joints and watching the teams of chefs operate, the epiphany hit and no it wasn’t the baby eel.  The key to achieving success is the same here as the U.S. and in the world –teamwork.  I noticed the differences between a truly GREAT Tapas bar and a so-so tapas bar had a lot to do with the level of teamwork, execution and communication within the group.  It wasn’t just the great quality and amazing flavors of the food that made the experience, it was the entire process, full of energy and precision that was awesome to watch, especially for a productivity geek like me!  The skill of people flowing along effortlessly: menus, translations, taking orders, food preparation, food distributed, drinks, constant clearing and replacement of dirty plates and new utensils distributed, final check in, clean up and then reset the area for the next customers and all along the constant communication between all the associates as they executed each task flawlessly.  Again, and again, over and over, repeating the process happily, energetically and always engaging without skipping a beat.  Those were also the places that had long lines of people eagerly waiting their seat like at Tapas 24.  Those places with short waits didn’t have the same energy and coordination.  It shows you the importance of that very precious commodity you have, your staff.

          witzshared.com

witzshared.com

In this day and age of computerization, digital scanning, smart phones, robotics and other electronic assistants we have developed a false sense that these systems are actually keeping us in touch with the pulse of the company in real time.  In actuality, it’s the people performing the tasks, your companies biggest asset who are the pulse of the company.  They execute the process, take the orders, produce the product and complete the servicing.  So peel off that layer of tronics and ditch your electronic umbilical cord and make the time to walk the floor. Visit the workers and engage in face to face verbal exchange with these people.  Visit when they’re on the production line, visit when they’re receiving on the dock, visit when they’re cleaning and then listen, listen, listen to their ideas, their perceived roadblocks and suggestions for improvement.  They are the team and when you give them the proper tools, proper training, realistic expectations and also ensure they are protected with proper PPE and safety policies you can create a business people would be willing to wait on a long line to experience.

 

USPS Killer Customer Service – Is Killing The Message

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When I say, inept, mismanaged, archaic, thinking like dinosaurs, behind the times, unimaginative, stuck to the old way, couldn’t think outside the box even if they were litery standing outside the box what quasi government agency comes to mind?  For me it’s the United States Postal Service.  Now I know It is easy to poke fun at this agency especially with such great characters you love to hate like Cliff Clavin and Newman, but it’s hard to laugh when they lost 15.9 BILLION dollars last fiscal year.  It’s also hard to laugh when they make strides to improve mail delivery but have NO clue on customer service.  If they were a real company in todays world, would they even still be in business?  No they wouldn’t, because their culture of secrecy, poor customer relations and ability to communicate to the public won’t allow them to make improvements since so many of their inept, lazy managers are threatened by making service improvements and might actually have to think for a change.

When I read about the voice of the customer and how companies monitor that voice to make sure they keep customers happy, the USPS uses deafness and silence as their voice of the customer.  I guess it’s much easier to monitor and you can always look good on your benchmarks when you don’t hear the public.  There is no incentive to listen since they couldn’t care less and have no fear of losing their jobs.  In light of the money they keep losing, someone hit upon the idea that without communication or returning a simple phone call they’ll save money like the supervisor at the Vallejo main post office who took the time to write down my name, address and phone number, promised to call and I never heard from him again.  Dollars saved, what a great idea, why hasn’t GM or Apple thought of that?

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I live on a Cul-de-sac and our community mailbox that services 12 families was vandalized and rendered unusable.  You can see that both back service doors are dangling.  This happened on June 6th. and that is when this odyssey began, of trying to get information from the USPS but you would think our community mailbox was involved with national security they’re so tight lipped.  First I went to the main post office on Santa Clara street and asked the clerk when it’ll be repaired.  She couldn’t answer and referred me to a supervisor whom I waited 15 minutes for.  As I said earlier he took all my info and never called back.  So I tried calling the main post office and they don’t answer that line and there must be no voice mail since it never picked up, again saving money.

So I contacted the Postal Service Customer Advocate at 1-800-275-8777 who are in Washington, D.C. on June 12.  They agreed it was poor service and gave me  case #CA113468629 and someone would get back to me tomorrow.  Yea right, but you know I wasn’t surprised because when you call the 1-800 line, the receptionist bot that answers has a lousy menu to start with and when you say or type your zipcode, it came up, with a male voice who said, “94589, Viejo, Ca.”  The problem is I live in 94589,Vallejo, Ca.  So on June 14 I called my Advocate to see if they were still advocating for me.  I gave her the case number and guess what?  They had nothing!  So she gave me the number at the Main, main Post Office in Oakland, for the Customer Relations at 510-874-8737.  I called and promptly got their voicemail.  As the machine had requested I gave name, address, phone number and the issue along with the case number, and this was early in the day.  As of today, June 17 I hadn’t heard back and called again and got a LIVE PERSON.  I discussed with her the issue and that I would like to have some answers.  Oh Yes, I can see why, She said, I’ll call you back, but this time Regina did call me back!!  She told me she spoke to supervisor Taylor at the Vallejo Post Office who explained that they only had ONE technician and that it won’t be repaired until next week, but couldn’t give a specific completion date.

poorcs

What a lousy cheap excuse.  Only one technician.  The manager here should be embarrassed with an answer like that.  You mean there is NO provision to contact other districts to see if they could borrow another tech for a short period?  I guess it’s very hard to think when you’re stuck in all that secrecy.  Can you imagine a fire district saying, we have only one engine on duty and not call a neighboring city for assistance?  Even the cable company offers better service.  So my neighbors and I will be without a mail box for a total of 21 days, figuring they’ll fix it by June 29 as projected and continue making the 7 mile round trip to the main post office.  The drive time is nothing, it’s the wait time on line just to get your mail that they are so graciously holding for us at no charge.  What a great group.  And that’s why this maze to go through to get some answers.  They hope over time you’ll get tired and stop.

This is where the USPS drops the ball in their culture of lack of customer service.  What good is getting packages and mail delivered on time when you have no place to deliver it?  There wasn’t even an attempt to notify affected customers as to what was going on, what the plan was, and when it would be completed.  They couldn’t send a representative to visit us, do handouts, communicate in anyway that they cared and would be held accountable?  This is a big reflection on not only the workers but the poor managers they have running the asylum since the workers only do what management lets them do.  It’s time to re-organize the Post office into independent operated districts and a thorough cleaning of the old management.  Bringing in entrepreneurs to operate the new postal districts will make it 100% better than now.

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I will keep you all posted, (haha) as this odyssey continues.  

Sure Fire Ways To Achieve Max Velocity.

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I love science.  Well, most of science, not a big fan of equations and statistics.  However, I love science, even more, when I get the opportunity to apply it to issues going on in my world of warehousing. Science?!  In a warehouse? Really?!  I think the best way to prove it, is to show you how we can use science in your warehouse.

Order picking, like receiving is another one of those critical areas of any warehouse whether picking raw materials for manufacturing or picking orders to be shipped to a commercial store or residential retail customer.  Your goal is to get the correct item to the customer intact and within the timeline the customer demands.  You want picking to be an uninterrupted flow, like a serene river, with the pick order set in a sequence to build a stable and good looking pallet, able to stand up to the rigors of shipping and within the customer’s specs.

If your warehouse pick operation is already set up for maximum efficiency you are to be commended.  If you would like to get your order picking to that point here are some tips and history to get you there.  It begins with Vilfredo Federico Damaso Pareto, born July 15, 1848, and the young Italian grew up with many interests and talents including engineering, sociologist, economist, and scientist.  He was the first who observed in 1906 than 80% of the land in Italy was owned by 20% of the population and he further developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.  This all gave birth to the Pareto principle of 80/20.

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This principle applies to your warehouse in that 20% of your sku, (stock keeping unit) account for 80% of the volume picked.  Why is that significant?  When you set up the locations of your picking slots you want the fastest movers closest to the dock for convenient quick movement.  In fact, depending on the quantities you ship you may want to look into cross docking some of these items as well.  You also want to give the physical pick location ample space to hold enough product for orders to be picked with the least amount of replenishments.  It also means that the items that account for only 5% of your pick volume can be placed the furthest away from the dock and can sometimes be stored in gravity flow racks and picked in batch style.  How does one find out how fast product moves?  You should be able to have generated a velocity report, and I would bet that the sales and purchasing groups have access to this report as well.  It’ll break down for you the total numbers of units moved for each SKU over a designated period of time.  This information can show you seasonal variations in quantities of specific sku shipped and other patterns.  I found running a velocity report quarterly was enough but you may want to look at it on a monthly basis.  Now you can categorize your sku into their different types of mover groups, fastest to the slowest and  can be broken down into three or four groups depending on the number of sku you maintain on hand.  A items=20% of the products that account for 80% of cases moved.  B=30% of the products that account for 15% of cases moved and C=50% of the products that account for 5% of cases moved.

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With that accomplished we can begin planning the slotting sequence and layout of your pick slots.  Usually want to set it up with heavy & large sturdy items picked first to form the base of the pallet and smaller lighter cases on top to avoid any crushing of boxes.  If you’re picking strictly raw materials for production put your heaviest items closest to production.  Make sure to purposely leave a few empty pick slots here and there for future expansion or to help give added slots for holiday season quick movers.

Once you have the sequence in order, to help maintain maximum picking effeincty you want to know how many cases of an item can actually fit into the picking slot.  That information helps determine the size of the pick slot you want and the number of replenishment you’ll need to make during any given workday.  The best way to accomplish this is by Cubing.   No, it’s not the art period but the cubic footage the case, carton, the box actually exists in.  However, to stop and measure every single sku you have and calculating the cubic space it uses is extremely labor intensive and there is also a greater risk of error.  There are machines like Cubiscan that you can purchase or lease to accomplish this task in no time.  Moving forward, as new items come to the warehouse you can get the carton size specs from purchasing or the vendor for calculating cubic feet.  

pickingOpt

Keeping the flow.  I strongly recommend that once you have gone through all this effort to get your picking operation in order keep it fresh by reviewing velocity reports on a regular basis and reviewing your slotting.  Listen to feedback from the pickers as they’re in the trenches every day and believe me they enjoy building the perfect pallet and they catch subtle differences in carton sizes or weights and other changes in the product.   They have some great ideas on picking sequence.  Most importantly put all this information together and develop a written slotting guide and procedures for your company on how the product is set up in the warehouse.  State your list of categories of velocity, A – ? , how often you’ll do velocity reports and Include what input is needed from purchasing and suggested timeline for this process on new items coming in with their dimensions, weight and estimated usage.  Make sure all old inventory is used up before beginning a new replacement item to avoid dead inventory.

Hurray Science.