In the right environment a Cost Per Unit (CPU) model is far superior to a traditional hourly staffing model. In a CPU the provider shares in risks and rewards, and there is an economic incentive to drive performance in a way that aligns with the client. In an hourly model, it’s the opposite. The provider is paid regardless of the outcome or performance and the client bears many of the risks associated with managing the workforce.
Many professionals view outsourcing as a costly, ineffective solution — yet nothing could be further from the truth. When done right, it can save your organization money while simultaneously enhancing worker performance and product quality.
The issue of warehouse labor shortage is not new. It has made headlines for the last few years. Back in 2014, the warehouse and distribution center industry suffered a record-low labor shortage – the tightest job market since the year before the recession. The shortage has yet to abate, with warehouses around the country still struggling to fill their staff roster
Last week we reviewed evidence that when companies invest in practices that increase employee engagement, they conversely produce higher levels of customer satisfaction and realize a significant increase in revenue growth. This is the reward of increasing employee engagement. Which leads us to a bigger question. What is the consequence if you do not address employee engagement?
We are all feeling the labor crunch. It’s hard to recruit, train, retain and make progress all at the same time. All of these labor challenges boil down to the fact that we are tasked with developing a rapport AND a system of accountability with the workers that ultimately determine our success. At nGROUP, we have taken on such challenges and created a labor model with specific tools and competencies that maintains flexible staffing while delivering the performance and quality that companies seek – with less sweat.
In the world of food processing and packing, we spend a great deal of effort focusing on production efficiencies and lowering labor cost per unit to improve profitability. However, fresh food processing presents a number of challenges that requires additional focus on improved product yield.
One of the benefits of attending this year’s Council of Supply Chain Management Professional’s Conference (CSCMP) was learning about trends that are on the horizon in the world of logistics. One such change is how technology is enabling companies to connect based on need and availability.
During the recent Council of Supply Chain Management Professional’s Conference (CSCMP), I had the pleasure to attend a breakout session conducted by Scott Graves, a PhD candidate at the University of Iowa. Graves presented his research on the pros and cons of Onsite Outsourcing – what we at nGROUP call Insourcing.
If you are like me, you are elated to hear the introduction song to Monday night football; look forward to ESPN’s College Game Day and get a little upset when the Fantasy Football app doesn’t work. As hard as I work during the course of the week, I look forward to pulling for my favorite teams during the weekend and recharging for the next week’s challenges.