– Supply Chain Insight –
Fishbone Friday: High Direct Labor Turnover
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Direct labor turnover
Welcome supply chain leaders, to the fourth edition of Fishbone Friday!
If you missed last week’s edition where we discussed possible root causes for a high or increasing cost per case, you can find it here.
Let’s get into the topic of the week: high direct labor turnover. Most seasonal distribution operations will rely on temporary personnel to fill labor gaps from time to time – especially during peak periods – and, although top performers are sometimes offered full-time roles, turnover at this level is not only expected but is a part of the deal. Turnover is something distribution executives have to live with, even in more senior roles; however, a consistently high (or increasing) turnover rate in is often just a critical symptom of a much larger problem within the operation.
A high (or increasing) turnover rate doesn’t just cause headaches for hiring managers, it can throttle productivity, lower morale and increase overall labor spend.
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Categories: Process Optimization, Warehouse Optimization,