Customers demand more services and stiff competition means more and more cost cutting.
A company's success or failure can depend on its ability to do both of these things simultaneously. Although increasing services while decreasing costs seems contradictory, it can be done, and two planning tools are especially helpful in making it work. CAD's principal use in material handling planning is for developing alternative layouts for warehouse and manufacturing operations. CAD has several features which make it more convenient than conventional mathematical calculations and drawing by hand. CAD is accurate enough to produce drawings which can be used for rack installation or parts assembly.