Labor availability is a chronic issue for supply chain facilities. Distribution is people-intensive but it is growing increasingly difficult to hire and train high-quality operations personnel. The work is physically demanding, schedules can be erratic, and while wages are competitive with other hourly positions, there is limited opportunity for income growth. Collectively, these issues make it challenging for fresh produce facilities to avoid turnover.
Finding capable employees, training them to be productive, and retaining them requires great effort—but it can help reduce turnover and improve performance.
“I can’t say enough about training,” reaffirms Treacy. “Training your people on product knowledge, order assembly methods, and proper pallet-building techniques so product arrives safely at the store is crucial. I’ve seen facilities boost productivity 25 to 30 percent by having a robust training program.”
Demand variation is problematic for fresh produce facilities. During peak harvest, storage capacity and processing capabilities are maxed out. In the offseason, large portions of these facilities are idled. Labor issues can also arise—for example, not enough help is available to fulfill orders during the critical season but little work is available at other times. Facility managers must smooth out the flows when possible or they will find it difficult to effectively utilize the space, equipment, and labor throughout the year.
An alternative to sizing a facility for peak volume is to temporarily leverage the capacity of third-party processors and storage facilities. “Using a third party allows you to shave off that peak volume and avoid the capital investment and fixed costs of a larger facility,” notes Treacy.
Collectively, these strategic responses help facility managers win those daily battles. The outcome is safe, productive, and profitable production and distribution operations.
FACILITATING RESOURCES
While strong processes executed by well-trained people provide the foundation for facility success, additional support is required. Technology plays a pivotal role in accurate, timely throughput. External auditors help companies avoid costly compliance errors. And logistics service providers (LSPs) create contingent capacity and value-adding services. Collectively, these resources promote facility excellence.
As regulatory and customer requirements increase, produce facilities can no longer be managed with pencil and paper. Technology is needed to maximize performance. For example, a warehouse management system captures inventory arrival and departure information, manages stock rotation, and synchronizes fulfillment activities within the facility. “Technology helps us find ways to streamline our processes, to get trucks in and out sooner, and to help produce arrive fresher at its destination,” explains Aguilar. “It has changed the way we communicate with customers through EDI (electronic data interchange), the way we transmit traceability data for Produce Traceability Initiative compliance, and how we receive and account for inventory.”
Understanding complex and changing regulations is no simple task. Even the most compliance-savvy facility managers can get tripped up on occasion. The expertise of an external auditor can be highly beneficial. The auditor’s job is to ensure the facility’s internal controls, processes, guidelines, and policies are adequate, effective, and in compliance with governmental requirements, industry standards, and company policies.
