Current Trends and Business Challenges in Supply Chain Labor – Part 2: Optimizing the Workforce

Last week, we explored the business challenges and trends in supply chain labor. In part 2, let’s take a deeper look at how companies are addressing those challenges.
Best-In-class supply chains are addressing workforce challenges by taking a comprehensive approach to their labor strategy…

When observing workforce optimization in warehouse and distribution centers, we can typically refer to three areas that comprise the building blocks of effective Employee Engagement.

Experience shows that best-in-class companies take a Crawl – Walk – Run approach to the implementation of workforce optimization strategies. The overall journey typically requires a cultural transformation within an organization, but the benefits outweigh the efforts with improvements in employee engagement, retention and bottom-line results
If we take a closer look at the three areas, here is what’s working:

Lean Warehousing:

  • Process Standardization works because it produces documentation for processes across all shifts, reduces variability, makes training of new employees more effective, increases safety and provides a baseline for continuous improvement.
  • Establishing a Baseline for Measurement is important, because it can reveal how much improvement has occurred through incremental changes.
  • “Walking the Floor” is an ideal way to engage employees in real-time and provide opportunities for coaching and learning.
  • Process Improvement is continuous, effective, necessary and is at the core of Kaizen
  • Recruiting and Hiring Best-Practices are the hallmarks of any successful business with a people-first culture.
  • Eliminating Waste across all aspects of the business enables investment in additional resources.

Workforce Performance:

  • Establishing productivity, quality and safety targets is an effective way to set a reference point for expectations.
  • Engagement and Education is a favorable way to encourage positive behavioral change in employees.
  • Reinforcing desired work habits is a positive way to reiterate the goal of continuous improvement.

Workforce Staffing and Planning:

  • Utilizing Technology to establish Engineered Labor Standards with software products like LaborPro™ is an effective way to better manage ever-changing labor models.
  • Performance Reporting is imperative to highlight the effectiveness or shortcomings of established and agreed upon goals and targets.
  • ROI Analysis confirms that all efforts point to improvement to the bottom-line.

Final take…

The challenges in supply chain labor will continue to evolve, just as trends will continue to change. By Staying nimble and relying on tried and true Lean Principles and Performance Goals, best-in-class companies will not only endure but will also thrive in today’s challenging environment.

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Jonathan Huesdash, industry thought-leader and Director at Connors Group, leverages his deep experience both in distribution and consulting to craft innovative workforce management and execution solutions for clients. He can be reached at [email protected]
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