The Impact of Recruiting and Hiring on Order Management and Delivery Performance

  • jobs & the economy, workforce insights
  • June 09, 2014
Today’s manufacturing and logistics operations are at the center of rapidly evolving industry trends that impact operational efficiency and influence customer retention. In particular, the intricacies of inventory management and order fulfillment have escalated as both order and distribution channels proliferate and customers demand faster and less expensive delivery options.
Issues related to technology, safety, ergonomics and cost pressures help to define how an enterprise moves and delivers its goods. They also illuminate the importance of hiring and maintaining a well-trained and stable workforce.

Right hiring boosts order management goals

Hiring in today's manufacturing environment

On a day-to-day basis, shift managers and supervisors must align their recruiting and hiring efforts to fill orders more quickly and meet promise dates by positioning the right leaders on the floor and the right individuals on the line. To find out more about how manufacturers recruit and hire talent, Randstad recently surveyed approximately 2,800 manufacturing professionals. Their responses on the following pages reflect both areas of success and opportunities to improve recruiting and hiring efforts.

in summary

The Employee Effect on Order Management and Delivery Performance
With over one-third of manufacturers reporting they are below headcount and a strong majority reporting longer hiring times, shift managers are incentivized to optimize recruiting and hiring processes that create workforce stability and reduce labor expense. Considerations include:

Cost Control
Manufacturers must be flexible to cyclical conditions, changing customer dynamics, governmental regulations and evolving technology systems, and therefore must carefully balance resources to meet rising expectations that in turn increase operational costs. For example, a recent supply chain management study by Peerless Research Group reports that a majority of manufacturers across all industries report increased costs of transportation (85%), raw materials (77%), labor (67%) and operational processes (62%).
While manufacturers cannot control external costs, they can—and have great impetus to—impact labor costs by hiring and training a stable workforce. Advanced fulfillment processes, such as paperless picking systems and SKU management tools, provide greatest ROI when worker transition and training is minimized.

According to the Peerless study, manufacturers indicate they will increasingly outsource particular
functions, with 46 percent saying they will rely on outside vendors for transportation and logistics. Slightly more than one-third will outsource production and warehousing work. The complexities of shift labor management are well-suited to outsourced labor solutions, are often particularly effective at improving attendance, accuracy and engagement of second and third-shift teams.

Staffing Partners
Systems and solutions that help boost order management and delivery performance while also reducing labor spend can differentiate an enterprise on many levels. Staffing partners offer the benefit of a reliable, qualified talent source, enhanced safety, outcomes and reduced employment management costs. Randstad is ready to share its labor management expertise and talent resources so your teams can operate at the highest levels and achieve operational success.