Every logistics operation will say safety programs are a priority. But many such claims are lip service only. Safety solutions, over and above OSHA-mandated programs, cost money – for training, equipment and software. Many companies struggle to invest money in things that might happen.
KANE’s new Chief Operating Officer is Richard McDuffie, a 30-year logistics industry veteran with a strong track record of driving operational excellence in logistics across the retail, manufacturing and 3PL industries. We recently sat down with Richard to discuss some of the changes he has seen in the industry over the years and what the future might hold.
If you were contracting for home renovation work, you might deal with a single general contractor to coordinate the project. But you’d like to feel confident that the people actually laying the tile, putting up the drywall, and attaching the plumbing fixtures have the experience and training to do a quality job.
The same holds true for the use of temporary labor for warehouse staffing. As a user of third-party logistics (3PL) services, you want to understand how your 3PL utilizes temporary labor and how that might impact work quality.
$7,000 dollars to replace a warehouse worker.
Sound like a lot? Well, that could be the low end.
Calculating the traceable costs, the cost of warehouse worker turnover can reach 25% of salary. Using an average salary for warehouse workers of $28,000.00 (according to Salary.com), $7,000 is about where you end up. But some experts calculate the real costs, when you factor in lost productivity and other indirect impacts, at 150% of salary. Either way, turnover in the warehouse can be a major drain on profits.
Other than inventory, labor is your biggest warehousing expense. And that warehouse labor… well, it's costing you a lot more than you may think.
According to salary.com, the average warehouse associate's salary is about $28,000. But many related expenses combine to make the total cost to your company for that full time employee much higher. Let's take a look at these additional warehouse labor expenses.
There’s a talent gap in logistics today and companies are dealing with it in different ways.
For KANE, that’s meant placing more emphasis than ever on hiring logistics workers from within. Recently, we caught up with KANE’s VP of Human Resources, Amy Wren, to discuss the subject.
KANE recently sponsored research that surveyed 250 logistics and supply chain executives on the subject of labor management strategies in the warehouse. Read the full report.
Topics: Logistics Labor Management
Warehouse productivity. Every warehousing operation on earth would like to be more productive, but too few actually invest the time to stop, retool and make it happen. Fortunately, there are relatively small things that just about every operation can perform in the here and now to boost productivity without major investments of time or money.