Peak season is a stressful time for many in the manufacturing, distribution and fulfillment sectors. With timelines significantly shortened and expectations high, staffing your operations is critical to a smooth peak season. There are many staffing model options available but cost per unit (CPU) can bring significant advantages to your business. Learn how a CPU model could help operate flawlessly during peak season.
What is CPU?
Simply explained, CPU is when you manage your workforce based on output, not headcount. For example, a CPU model would manage staff based on the amount of returns you need to process, the number of packages that need to be shipped or loaded onto trucks, etc.
The CPU model offers operations the chance to reduce the amount of steps in their production and increase efficiency quickly. Both are factors that become critical during peak season.
During peak season, high turnover becomes a huge risk. Due to quick turnaround times, the chances of overworked employees and more demands increases. Couple that with a large amount of employee choices and competitive wages and you have the recipe for a high turnover rate. You may be able to quickly fill positions again, but it takes time to fill and train for those new positions, reducing your productivity at a critical time and increases cost.
With a CPU model, your CPU partner takes on the responsibility of finding and training new staff to be efficient. But your cost does not change. New associates will get up to speed faster without any risk to you of money lost.
2. Productivity costs
During peak, associates may not be productive or avoid participation in production. As a result, you’ll have to pay to rework the product and risk your client relationships. Conversely, a CPU partner would be accountable for productivity results and utilization without any increase in cost to you.
3. Headcount swings
Peak and post-peak increase the changes of headcount swings. It’s very likely that you may find yourself short of staff on your busiest days or sending people home when things slow down. Either way, you absorb the cost of either falling short on production or paying too many workers. A CPU partner would be able to manage swings in headcount and get the right amount of workers for each day of peak, with no increase in cost.
During peak, productivity and output is critical to the success of your operation. A CPU partner, such as SIMOS Solutions, is on the hook not just to deliver people, but to deliver a service level within the confines of a fixed cost. When you partner with SIMOS, you can expect enhanced labor performance, streamlined processes, budget certainty and measurable improvements across KPIs.
Partner with us to see what SIMOS Solutions can offer your operation during peak season and beyond.
About the AuthorFollow on Linkedin More Content by Casey Nighbor