Maintaining Supply Chain Efficiency After Layoffs

Retailers may feel pressured into viewing their floor personnel as more of a driver of costs than of revenue, but take those employees away and one group will certainly notice: your customers. The sad fact is that retail is the victim of seasonal buying habits, and the external pressures of the economy at large.

As a result, layoffs are quite common. So, how do these big box stores maintain year-round efficiency even when personnel is absent? Here are a few tips that major players use that any smaller chain can utilize to maintain efficiency when there's a void in human resources.

Find Alternative Methods to Move Product

After layoffs, one of the first things a retailer can do to maintain efficiency is build a list of leading warehouse management systems that can hold and distribute stock at the local level. Picking one depends on how well each option will work with the retailer in terms of movement. One of the key tenets behind companies like Amazon and Wal-Mart is mobility. If your warehouse is close to the local store, or the customer, you can ship product easily and quickly. Instant fulfillment can also command a premium, as customers are often willing to pay extra for expedited shipping.

Closer logistics also means rapid in-store fulfillment becomes a possibility. Think about a customer ordering a TV; they might buy HDMI cables and gadgetry to help enhance their viewing experience. But if you aren't able to properly stock your shelves, they might order those items online from some other company.

Build an Agile Workforce

Better time management software unlocks a great deal of potential for employers. Retailers can track a worker's progress at a granular level, for a high-level picture of in-store productivity. Managers can re-assign remaining employees as necessary. Neglected sections of the store can receive the care they need to keep shelves stocked and products moving.

Investing in contractors for a temporary boost in help is another great idea. Hiring a full-time employee, with the additional cost of benefits, isn't sustainable for some small businesses. In Europe, as well as in the US, companies are turning to contract labor to fill the void. The contractor can do the job and move onto the next company, while the employer reaps the benefits of agility.

Invest in Data

When employees have been laid off, every move becomes critical. Where management allocates the remaining workforce impacts everything from customer service to sales. Knowing customer buying habits helps decision makers determine where personnel is best utilized.

Knowing how customers shop helps a retailer allocate personnel in highly-trafficked areas, making sure shelves are full and customers who require assistance can find it. Big data also automates the ordering process based on customer buying habits to improve logistics.

Retain Employees with Robust Training

Layoffs are going to happen to nearly every business owner, and they're never pleasant. If your workforce is dwindling and you find your efficiency suffering as a result, invest in some training for the employees who remain. Workers who understand protocol are better able to manage themselves, and can provide more efficiency for every hour worked.

Re-training also has value. Legacy employees may not be fully versed in new technology, while others may not be comfortable filling certain roles that may become vacant. Investing in training allows a smaller number of employees to fill a growing number of roles and take on new responsibilities.

The retail landscape is no longer competing with what's in the local area, as smaller shops increasingly find themselves at odds with the Amazons and Wal-Marts of the world. The advantage these smaller stores have is typically their agility. Through smart contracting, better decision making, and planning, logistics can be managed at the smaller scale without sacrificing customer service or incurring huge costs for labor