In Intelligrated's most recent On The Move webinar, "Using business intelligence to improve your labor force," I explored the potential of marrying business intelligence's (BI) visualization and self-directed investigation capabilities with the known benefits of labor management software (LMS). Combined, these tools are helping businesses better identify labor performance and efficiency problems, and exploit opportunities to improve performance.
To start the discussion, I explained how BI has evolved from an IT-driven pursuit to a self-service model - one where the end user performs the data investigation process and generates visualizations that help companies quickly see trends in large sets of information, as well as identify anomalies. To demonstrate the value in this concept, I presented a visualization of the traffic patterns in the greater Los Angeles metropolitan area. By briefly looking at the visualization, one can quickly determine L.A.'s traffic pattern origins and its concentration of commuter destinations.
Then, I transitioned the focus of the discussion to the use of BI in labor, specifically about how advancements in self-service tools and their integration with LMS are enabling companies to gain new labor insights and address labor market challenges. With the integration of BI into LMS, companies can take traditional performance analytics a step further, by digging deeper into root cause analysis that often belies original assumptions.
To demonstrate the impacts of self-directed investigation in labor management, I walked through three case studies using Intelligrated's BI tool.
1. Shipping error investigation. A repeat missed shipment problem on third shift warranted further investigation by the labor manager. The initial investigation suggested that those shipping errors likely stemmed from the temporary workers on that shift. But upon further investigation, the BI tool revealed that the temps on third shift were outperforming the full-time employees (FTEs). From that insight, the manager inferred that the company's third shift temp training was producing higher performance rates than those of its FTEs. The manager could then take steps to refresh FTE training and address the performance problem.
2. Star performer identification. Most organizations typically have one employee who regularly outperforms others. Through self-directed investigation, BI visualizations help labor managers uncover the specific work patterns that allow these individuals to excel. In this example, I demonstrated how an investigation revealed one shipping staff member who far exceeded the performance levels of his co-workers. Further digging with the BI tool uncovered that this person was especially skilled at processing cases. From a management perspective, this allows leadership to follow up with this individual, understand their processes and then pass these learnings on to other staff members.
3. Execution monitoring. One of the primary goals of resource planning is to make sure the current labor force can execute the daily volume of work. The BI tool enables management to evaluate volume levels throughout the day and adjust the labor force as needed. Visualization clearly shows where the resources and execution plan do not line up. Management can use this tool at different points of the day to see a snapshot of performance versus execution, and then plan accordingly.
To learn more about the potential of BI in labor management, please view this webinar in its entirety.
The evolution of business intelligence (BI) has brought visualization and self-directed data investigation to labor management software (LMS). While LMS may generate mass amounts of data, this information is only as good as its ability to present it in a manner that is easy to interpret. Without BI, knowing which areas to focus on requires multiple levels of investigation. With BI, you're able to to not only reveal the root cause of a trend or problem, but include other necessary data points to see the full picture.
In our next On The Move webinar, Jason Franklin, Intelligrated Software's product manager of labor and business intelligence, will discuss the potential for using BI in LMS applications. The webinar will take place on Tuesday, June 27, 2 p.m. EDT / 11 a.m. PDT and demonstrate how BI is used to investigate and uncover what's typically unseen data. Jason will demonstrate this capability with common labor scenarios that can help organizations improve their labor pool's performance.
Attendees will learn how to:
- Better optimize temporary labor resources
- Identify top performers and transfer their knowledge to others
- Improve labor planning processes through better planning and execution
- Predict and prepare in advance for daily throughput peaks
Jason will use three common labor scenarios as case studies to demonstrate how BI can be used to uncover actionable intelligence that will allow you to get the most out of your labor force. The first case study will show how the poor performance of full-time employees is tied to temporary workers, and how BI helped uncover the root cause of the issue. The next case study will highlight a star performer, and demonstrate how BI can identify and teach the behaviors that are helping that individual excel. The last case study will discuss the importance of effective labor planning and how BI can help monitor current progress and predict daily production peaks and valleys.
Register now for this informative On The Move webinar to learn how BI and LMS can help you maximize your labor force productivity.
I recently presented an On The Move webinar where I discussed the retail trends for 2017 and beyond. After compiling the data from various industry sources, what struck me was how much these trends have evolved in a relatively short period of time. In the last 10 years, traditional retailers and e-tailers alike have lived through a dynamic transition in the marketplace. As consumer expectations, demographic changes and the growth of e-commerce drive distribution and fulfillment strategies, our industry will need to continue to adapt.
What follows are the top 10 retail trends for 2017 that are impacting retailers now - and which most likely will affect their operations well into the future.
1. Population densities concentrated in major cities. With 82 percent of the U.S. population living in and around major cities, retailers must adapt to consumer behaviors by offering urban store formats and updating distribution and fulfillment strategies that enable direct-to-consumer deliveries.
2. Continued e-commerce growth. E-commerce is here to stay. Over the last decade, the calculated annual growth rate of e-commerce vs. total retail sales is 14.5 percent. Year over year, e-commerce sales continue to outpace traditional retail sales by significant margins.
3. Brick-and-mortar retailers struggle online. Traditional retailers aren't necessarily capitalizing on e-commerce opportunities. Although retail sectors are impacted differently, overall e-commerce growth for these retailers is on the decline.
4. Amazon continues to dominate e-commerce. In 2016, 4 out of every 10 U.S. dollars spent online were with Amazon. The rest of the top internet retailers are growing at a lesser rate than Amazon, with each segment requiring specific fulfillment strategies to accommodate their product profiles and customer service level agreements.
5. E-commerce SKU proliferation. For typical retailers, the number of products available online greatly outnumber those stocked in their outlets. This reality creates complexities in the distribution and fulfillment process: as more individual items are ordered, picking requirements increase in the warehouse.
6. Cross-channel shopping is the new norm. 38 percent of shoppers utilize multiple channels (omnichannel) in their shopping process. Of those who use a single channel, 42 percent search and buy online, while 20 percent search and buy in stores.
7. Generation Z is going back to stores. 98 percent of Gen Z (younger than 18 years of age) prefer to shop in stores. Product quality is most important to them, so the opportunity to inspect these products first-hand is imperative. Retailers will have to closely monitor their buying preferences as they mature.
8. More consumers buy online and pick up in stores (BOPIS). To offset shipping costs and add convenience to the buying process, consumers are increasingly utilizing stores to pick up online orders. Of the 50 percent who have done this, 46 percent make additional purchases at the store.
9. Dimensional weight (DIM) pricing changes packaging profiles. To increase the density of parcel carrier trucks and improve last-mile shipping efficiencies, DIM pricing continues to drive the packaging profiles away from traditional cartons to polybags.
10. Labor challenges persist. With the retail industry labor market at nearly full employment in 2016, warehouse operations are challenged with recruiting, training and retaining talented employees.
It's clear that everyone must have an e-presence to drive and achieve their sales targets moving forward. To do so, retailers will need to develop omnichannel distribution and fulfillment strategies to delight customers and meet challenging service level agreements.
To learn more about trends in the retail space, please view this webinar in its entirety.
Followers of the On The Move webinar series know that we often address a handful of trends that are dramatically reshaping the retail and order fulfillment landscape. Whether we're discussing sortation technologies, put walls, vertical conveyance or labor management, these trends are driving many of the operational decisions that store and distribution center managers must make to survive in today's ultra-competitive retail markets.
This list of retail megatrends includes: the continued growth of e-commerce; the proliferation of SKUs for online order fulfillment; consumer preference for omnichannel integration; and the changing role of the retail store. For more than a decade, retailers have watched these trends evolve and tried to adapt their fulfillment operations to meet changing consumer demands. And as online growth continues to outpace non-web growth, favorable demographic tailwinds are poised to continue this evolution.
In our next On The Move webinar, "Retail trends for 2017 and beyond", we will report on the state of e-commerce and other key retail trends. Hosted by Jerry Koch, Intelligrated's vice president, product management, the webinar will take place on Wednesday, May 31, from 2 - 3 p.m. EDT / 11 a.m. - 12 p.m. PDT. Jerry will explain how the increasing complexity of the flow of goods is creating a disruption in traditional retailer supply chains. He'll also examine the near- and long-term implications of the latest trend data, including:
- From 2013 - 2018, online growth is projected to outpace non-web growth: 13 percent vs. 3 percent
- 2015 e-commerce sales grew 14.6 percent to $341B; projected to eclipse $530B by 2020
- Omnichannel consumers are driving the investment in fulfillment operations by brick-and-mortar and e-commerce retailers
- Retail and manufacturing distribution strategies are evolving to serve consumers in population centers (megacities)
Register now for this important On The Move webinar and make sure you're prepared to adapt to the changing retail environment.
Modern DC operators face a common dilemma: the space they need to meet omnichannel demands is running out. As direct-to-consumer order fulfillment requirements continue to push the limits of service level expectations, the physical constraints of their warehouses have them feeling boxed in. Typical options to solve this problem - such as expansion, new facility construction or outsourcing - are often impractical and require significant capital expenditures. But there is another direction operators often overlook to maximize the use of their existing operations; upward!
Our next On The Move webinar will explore the vertical conveyor solutions available to solve the challenge of diminishing space in the DC. This complimentary webinar is titled, "Vertical solutions: elevating your products to the next level," and will take place on Thursday, March 23, 2 p.m. EDT / 11 a.m. PDT. Presented by Joe Joice, vice president of business development for USS, an Intelligrated company, this informative session will answer many questions about the trend of going vertical, including:
- Why is the option to expand vertically becoming more commonplace?
- How are commerical logistics models evolving from traditional "push" to consumer-driven "pull"?
- What are the pros and cons of today's wide variety of vertical lift and conveyance technologies?
- Which applications are currently benefiting from these vertical conveyor solutions?
- Where is this technology applicable to manufacturing and assembly environments?
Attendees will learn how modern vertical conveyor solutions enable a wide range of input and discharge height customizations for maximum application flexibility. Joice will demonstrate how these systems can expand to heights up to 30 feet and utilize C-shape, Z-shape and T-shape workflow configurations.
Aside from the obvious advantage of maximizing space utilization, attendees will also learn the many ancillary benefits of vertical sortation solutions, including: enhanced safety, increased efficiencies, higher throughput and decongestion.
So if you're ready to evaluate the viability of vertical solutions to alleviate your DC space constraints, you won't want to miss this important webinar. Register now to join Joe Joice on Thursday, March 23 at 2 p.m. EDT / 11 a.m. PDT.