Warehouse Labor Solutions: Tom Landry Speaks at CPA and IWLA
By Allegiance Staffing
March 25, 2019
Allegiance Staffing president Tom Landry has an important message to share about warehouse labor solutions in a tight labor market.
In the first quarter of 2019, Mr. Landry delivered the message in two separate forums to help employers think smartly about their labor force this year:
- CPA 2019 (Contract Packaging Association) Annual Meeting
- IWLA 2019 (International Warehouse Logistics Association) Annual Meeting
CPA 2019: Effective Tactics to Get More Throughput From Your Workforce
– CPA 2019: February 20-22 in Tampa, Florida.
– Tom Landry Presentation: Zero Labor Factor and the Next Generations.
Mr. Landry challenged the warehouse industry to reconsider their approach to making labor more efficient. For too long, contract packagers have increased costs as part of a short-term solution to get product out the door.
- Instead of hiring more people, identify the most efficient workers.
- Remove inefficient workers who are on the path to likely turnover.
- Maximize the capabilities of your efficient workers to reduce overtime.
“Labor is your variable where, if you can control it, you’re profitable, and if you can’t control it, you’re not profitable. It’s a pretty simple calculation,” Mr. Landry was quoted by Packworld.com.
“Let’s take care of the people who are critical and deal with mitigating the effects of those that aren’t critical. Promote two of your critical guys, pay less for your non-critical guys, and avoid overtime and extra employees.”
IWLA 2019: Make Smart Hiring Decisions to Achieve Efficiency
– IWLA 2019: March 10-13 in Savannah, Ga. (Allegiance Staffing gold sponsorship.)
– Tom Landry Panel Discussion: Labor in Today’s Workforce.
Mr. Landry challenged warehouse decision-makers to re-evaluate how many workers they really need to get product out the door.
For example, a job that previously took 20 employees might be taking 30 employees now because of short-term thinking to address an immediate problem.
“If you want to find the money, go back to that and say, ‘If I had the right people, how many do I really need?’ We ask that question of everybody we talk to,” Mr. Landry said.
What’s the formula? If you’re paying 30 employees to do the job, but only 20 are working efficiently, then remove the other 10, pay the best 20 workers more, and achieve more efficiency.
“You haven’t increased your labor budget; you’ve just improved your efficiency,” Mr. Landry added.
Work with Allegiance Staffing to Optimize Your Labor Force
Allegiance Staffing works with warehouse staffers to unlock the ideal labor solution for your company. We will help you identify the optimal labor size, reduce costs, and increase efficiency.
To get started on a warehouse labor solution, contact our team today. We look forward to helping you get more throughout in 2019.