In an industry that’s suffering severe labor supply shortages and unparalleled demand for services be the warehouse that’s growing thanks to smart solutions. Lowering the costs of labor in your warehouse can give you the financial room you need to hire more qualified candidates, decrease your costs per unit, and maximize efficiency in the workplace. You can thrive, not just survive, in today’s economy with these 8 ways to reduce labor costs.
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
The standards you maintain in your organization’s warehouse can determine productivity levels and the overall costs of operation. A streamlined, efficient, and productive warehouse can result in savings on a cost-per-unit basis. More warehouse efficiency = faster production = more production = more money out the door. Your approach to warehouse management can make all the difference in productivity. Use this article to revolutionize systems at your business, improve warehouse efficiency, and achieve long-term warehouse optimization.
If warehouse labor productivity is a question mark at your corporation, you could be losing money. It is paramount to stay on top of your warehouse’s performance measurements at all times, continually searching for inefficiencies and opportunities for improvement. Otherwise, productivity could be slipping through the cracks…as could your profits. Learn how to make your warehouse operations leaner through data-backed strategies with help from nGROUP.
Engineered standards are key to implementing production planning, management reporting, incentive structures, and individual accountability. Standards are developed using techniques that create fair expectations of the output projected over a specific time frame.
You have entertained your fair share of sales pitches promising that their programs will bring astonishing improvement to your bottom line. But how can you know for sure? Who can you really trust to bring you the results your company needs? Pick a plan with a guaranteed, proven outcome with feasible implementation.
As explored in “Contemporary Issues Fueling Operational and Labor Change,” there are many factors driving the need to change operational strategies.
If you are a baseball fan chances are you’ve seen the 2011 movie Moneyball, starring Brad Pitt. The movie focuses on the rise of advanced statistical analysis in Major League Baseball and is based on the Oakland’s A’s 2002 season when they won 103 games.
As a baseball fan and an operations officer, one line from the movie struck me. “It’s about using stats to reread them [players]. We’ll find the value of players that nobody else can see. People are over looked for a variety of biased reasons and perceived flaws . . . Mathematics cuts straight through that.”
If you’re like me, you have a natural skepticism towards trying the latest greatest products or adopting a new way of doing things. In the business world, I think there is even greater resistance to change. Perhaps it’s based on negative experiences or the fear of failure. Regardless of the reason, resistance to change is the number one obstacle I encounter as I meet with Operational and Human Resource professionals.
For years I complained to my wife that despite the fact that I ate healthy and lean meals, I simply could not lose weight. At first she asked me what I had eaten and I would recite a list of healthy foods. For quite some time, she agreed, “you are doing everything right.” Then one day she shared an observation.
My list didn’t match my reality. She quickly started pointing out things that she witnessed – the candy bar after lunch, the forgotten beer watching the ballgame, and the calorie dense latte. In short, I was fooling myself. After decades of managing and observing production floors throughout the U.S., I realized that the same phenomenon takes place in almost every work site that I visit.