Order fulfillment operations come in all sizes, shapes and types, including a basket of challenges that diversity creates. One of the most difficult challenges in this industry is developing order picking talent. It’s competitive these days, as you know, for distribution facilities and e-commerce fulfillment centers. One of the best ways to enhance those operations is to develop your labor force more fully. What can you do?

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We had the opportunity to sit down with Brian Neuwirth, President of UNEX, for a wide-ranging discussion on the state of manufacturing. He shared his insights on key issues facing the industry from improving customer experience to addressing the skills gap.

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We published an article in the third quarter of the MHEDA Journal, Automation and Labor: Can’t They Get Along? The point of that article is that for American labor, robots aren’t currently reducing employment so much as changing it. Automated industries tend to be more profitable and less vulnerable to offshoring and other job-reducing factors.

Our friends at AutoQuip brought up another point—that automated systems and lifts can add valuable years to the working lives of high-skill, aging employees.

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Manufacturing skills gap. Talent shortage. Shifting workforce demographics. What are the trends?

Call it what you will, but the fact remains that the U.S. manufacturing industry faces a pressing issue in the coming years if current worker retirement rates continue to accelerate and projections for industry expansion prove accurate. Research from the Manufacturing Institute and Deloitte indicates there could be as many as 2 million unfilled manufacturing jobs by 2025, up from initial estimates of 600,000. As noted in a Huffington Post article on the research findings, retirement and rapid industry growth are the two driving factors contributing to the skills shortage.

To get a better sense of how the industry is addressing the challenges (and potential opportunities) associated with the increasing skills gap, we recently conferred with industry partners, leaders, and subject matter experts.

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Incentive programs are surprisingly common for industrial operations, and they can produce significant savings, quality increases and improved employee satisfaction – if the program is built correctly. In manufacturing, assemblers are often incentivized for quality and speed. In warehousing, it can be reduced product damage, pick rates, error rates or any number of other categories. When companies build out these programs, there are opportunities to create great value. How are companies going about this?

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Like the Paul Simon song goes, there are 50 ways to pick an order—except in reality there are far more.

With such a variety of methods, processes, technologies and equipment options out there, it can be challenging to determine the best ways to improve order processing efficiency and productivity. In this article, LIDD’s Charles Fallon discusses 10 ways for distribution center managers to boost their order picking crew’s performance.
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In its 2011 “Skills Gap in Manufacturing” report, the Manufacturing Institute laid out the situation: as American manufacturing continues to expand, a lack of critical skills in the workforce is becoming an increasingly common limitation. In many places, we see classified ad pages full of jobs for skilled positions like CNC machinists, high-volume assembly technicians, welders, or electricians. With a reported 600,000 unfilled jobs in the manufacturing sector, it’s something that has to be addressed.

Certainly, lower-cost foreign labor is still a drain, but there is little manufacturers can do about that. What can manufacturers do?

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Earlier this year, Food Logistics published a provocative article, “Automate or Die”.  Do you have to automate? Of course not. But it brings to mind a good question: where is the point of acceptable ROI for automation projects? When does it make sense? What aspects are potential pitfalls?

We’re  inside warehouses, distribution centers, commercial operations, and manufacturing facilities every day. We don’t see full scale automation in all — or even most — of these operations. We’ve even seen some companies who have automated go back to picking with carts. We’ve seen others thrive due to their automated projects. The point is, you certainly won’t “die” if you don’t automate. But that doesn’t mean that you should not automate some or all aspects of your operation.

In some cases, we try to make the case that automation isn’t needed. In others, we try to help these companies understand when a capital investment in automation equipment and/or software will save money, increase productivity, reduce problems, and improve their business. It’s not  something that you can do from a distance.  It requires a command of the facts on the ground, in the servers, and throughout the supply chain.

So, the question is, why automate? 

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Merging two formerly separate industrial operations can be more difficult, expensive, and time consuming than creating an entirely new plant. After all, even in the best of scenarios, it’s almost always easier to start with a blank slate. But in these days of consolidations and cost cutting, this can happen to almost any company.  Planning and open communications is the key in general, but there are specific issues you should be aware of.

What are some pitfalls, and how can you avoid them?

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The warehouse. The office.

Sometimes it’s as if one doesn’t exist to the other. As one of our customers told us, “it’s like we have two companies here, and one doesn’t know what the other is up to.”

But when you’re trying to operate better, it’s impossible to separate the two functions. Decisions can be made in one area that can impact the other severely, so communication and cooperation are vital. Too bad it doesn’t always work that way. How can you improve it?

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