Labor costs and availability
With the dramatic growth of online sales, companies are struggling to fill open positions in their warehouses, especially during peak season. Labor supply is becoming scarce as the pressure of high business instability and extremely aggressive competition makes work more difficult and raises productivity expectations.
Permanent stress, high performance targets and inefficient management systems lead to low productivity, errors, demotivation, and high turnover. This, along with the need to use temporary workers to absorb peaks in activity, results in high recruitment and training costs.
Investing in warehouse automation can help alleviate labor shortages by increasing the productivity of the existing workforce, provide a more flexible organization to absorb business fluctuations, and reduce tediousness by automating repetitive non-value-added tasks.
What should you consider when you want to solve your labor issues with warehouse automation?
- Automate tasks that have the highest potential impact on service level and customer satisfaction
- Involve employees in the transformation process
- Invest in training
- Differentiate between people and machines when setting productivity targets