Today’s supply chain is powered by people. The current talent shortage, however, is making it difficult to build and maintain a high-performing workforce, especially as omnichannel distribution continues to grow and unique new demands arise for 3PL providers. Efficient, profitable omnichannel logistics require flexibility and agility throughout the supply chain—especially when it comes to optimizing your workforce.
One of the biggest challenges is aligning labor with demand in order to balance service and costs. Managers need to put the right people with the right skills in the right place at the right time to fill orders in a timely, accurate and cost-effective manner — even as volume fluctuates. Plus, you need to manage absenteeism to avoid reliance on costly overtime or replacement labor and measure performance against labor standards to maximize productive time. All of this requires real-time visibility across your labor supply chain to identify and resolve potential issues — before service levels or profit margins are adversely affected.
Put the right HR management strategies to work for labor retention and optimization
With no end to the talent shortage in sight, you need to make sure the employees you hire not only stick around, but also perform well on the job. A critical first step for retaining and optimizing a quality workforce is to make sure that HR and operation are working in tandem to engage employees. This means it is important not only to implement HR strategies that have a direct impact on performance, but also configure your workforce management solutions to reflect established reward strategies and track and report on effectiveness.
Based on your corporate culture, HR management style and business goals, you can determine which of the following employee reward strategies is most likely to drive performance across your organization:
· Behavior-based: Rewards employees based on behavior, including attendance, safety scores and customer service ratings
· Development-focused: Rewards employees who are seeking to develop and increase their skills according to corporate goals
· Results-based: Rewards employees solely on results, such as order accuracy and on-time delivery
Leverage technology to control labor variabilities, manage costs and uncover hidden capacity
Every day logistics organizations like yours are up against people-related variables that can increase costs and decrease overall productivity. But these variables — whether absenteeism, overstaffing, or idle time — are often difficult to identify and control. Over time, these missed opportunities for reducing costs and improving efficiency can eat away at profit margins. Consider this: for a company with a $10 million payroll, just five percent nonproductive time can waste $500,000 annually.
As your organization faces rising labor costs, omnichannel distribution challenges and a shrinking talent pool, a comprehensive labor management system can deliver significant value by providing real-time visibility into the workforce.
Equipped with the right technology, your organization can:
· Control labor costs by automating manual, error-prone timekeeping and payroll processes
· Link labor costs to orders — factoring in value-added services—to account for every dollar spent
· Allocate and align labor to demand with “best-fit” schedules that take into account costs, skills, certifications and more
· Gain real-time visibility into order status and make labor adjustments to meet delivery deadlines
· Drive quality service by integrating labor and pay data for accurate, well-managed incentive-pay programs
· Minimize compliance risk by consistently applying rules and policies associated with state and federal labor laws, industry regulations and union agreements
In today’s logistics industry, people are a critical component of any successful business strategy. But when you’re faced with persistent talent shortages, high labor costs, complex operational challenges and volatility across the supply chain, you need to get the most from your people and keep them engaged to execute on your strategy and drive results.
Workforce management technology provides the automated tools and real-time visibility you need to identify productivity gaps and uncover hidden labor costs and capacity in your workforce. Armed with these insights, your organization can take action to optimize labor resources and keep results in line with expectations. The payoff? Reduced labor costs. Improved workforce productivity. And new levels of operational excellence.