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What do you do if your warehouse operations face obstacles and challenges during a layoff?

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Layoffs are stressful and challenging for any business, but especially for warehouse operations that rely on efficient and safe handling of inventory, orders, and deliveries. If you are facing a layoff in your warehouse, you need to take some steps to minimize the impact on your operations, your customers, and your remaining staff. Here are some tips to help you cope with the obstacles and challenges of a layoff in your warehouse.

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1 Assess your needs

Before you make any decisions about who to lay off and how to reorganize your operations, you need to assess your current and projected needs. How much inventory do you have and how much do you expect to receive and ship in the near future? What are the essential tasks and processes that need to be performed and maintained? How many staff do you need to cover those tasks and processes? How can you optimize your layout, equipment, and technology to reduce waste and increase efficiency? By answering these questions, you can identify your priorities and gaps, and plan accordingly.

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Tony Pashigian

I turn around struggling Production and pre-launch Projects for operations who want to get back on track or improve efficiency.
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What do you do if your warehouse operations face obstacles and challenges during a layoff? Is that really a question? Why would they be facing challenges in the warehouse during a layoff if management knew what they were doing? If they don't have sufficient resources, isn't that a management problem? Fine. You "made the numbers" but you can't run your operation. So, did you really "make the numbers"? The underlying assumption seems to be that poor management and bad leadership gets a pass and those left standing as their employed victims (as opposed to those that were laid off) have to "figure it out". I guess management better get out in the warehouse and roll up their sleeves.

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Bill Stankiewicz

Member of Camara Internacional da Indústria de Transportes (CIT) at The International Transportation Industry Chamber
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Always remember, employees are the central pillar of warehouse operations, and management’s ability to preempt employee problems as well as implement solutions is the difference-maker for success and efficiency. A high turnover is disruptive to warehouse operations. Twenty-seven percent of businesses believe high turnover caused them to miss delivery timelines and production deadlines. Think about the learning curve all new staff must go through before they eventually take a firm hold of your processes. It comes with costly delays and mistakes. Additionally, there’s all the in-house and external training you invest in for each worker. This takes time and money. Review your needs, plan, and get going!

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Rashid Imtiaz

Supply Chain/ Planning
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When warehouse operations encounter obstacles and challenges during a layoff, it's crucial to prioritize communication and efficiency. Streamlining processes, reallocating tasks among remaining staff, and ensuring clear lines of communication can help mitigate disruptions. Additionally, providing support and resources to the remaining team members to manage increased workloads or unfamiliar tasks can bolster morale and productivity during this challenging period. Regular check-ins and feedback loops can also help identify and address any emerging issues swiftly, allowing the team to adapt and maintain operational effectiveness amidst the layoffs.

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2 Communicate clearly

Communication is key during a layoff, both with the staff who are leaving and the staff who are staying. You need to inform your staff about the reasons for the layoff, the criteria for selecting who stays and who goes, the timeline and procedures for the layoff, and the benefits and support available for the affected staff. You also need to communicate with your customers and suppliers about how the layoff will affect your operations and service levels, and what measures you are taking to mitigate any disruptions or delays. Be honest, transparent, and empathetic in your communication, and address any questions or concerns promptly.

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Bill Stankiewicz

Member of Camara Internacional da Indústria de Transportes (CIT) at The International Transportation Industry Chamber
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Communication is key. A well run company has regular meetings and employees are given the ability to access management even anonymously if needed.

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3 Train and cross-train

A layoff means that you will lose some of the skills and knowledge that your staff have accumulated over time. To ensure that your operations continue to run smoothly and safely, you need to train and cross-train your remaining staff. Training means providing them with the necessary instructions, guidance, and feedback to perform their assigned tasks and roles. Cross-training means teaching them how to perform other tasks and roles that they may not be familiar with, but that they may need to fill in for in case of absences, emergencies, or changes in demand. Training and cross-training can also boost your staff's morale, confidence, and flexibility.

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4 Monitor and adjust

A layoff can have unforeseen consequences on your warehouse operations, such as lower productivity, higher error rates, lower customer satisfaction, or higher turnover. To prevent or address these issues, you need to monitor and adjust your operations regularly. Monitoring means measuring and tracking your key performance indicators, such as inventory accuracy, order fulfillment, delivery time, quality, safety, and customer feedback. Adjusting means making changes to your processes, policies, schedules, or resources based on the data and feedback you collect. Monitoring and adjusting can help you improve your efficiency, effectiveness, and resilience.

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5 Recognize and reward

A layoff can also have a negative impact on your staff's motivation, engagement, and loyalty. To retain and support your staff, you need to recognize and reward their efforts and achievements. Recognition means expressing your appreciation and gratitude for their hard work, dedication, and adaptability. Reward means providing them with tangible or intangible incentives, such as bonuses, raises, promotions, perks, or opportunities for growth and development. Recognition and reward can help you foster a positive and productive work culture, and increase your staff's satisfaction and retention.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What do you do if your warehouse operations face obstacles and challenges during a layoff?

1

2

3

4

5

6

1 Assess your needs

2 Communicate clearly

3 Train and cross-train

4 Monitor and adjust

5 Recognize and reward

6 Here’s what else to consider

Warehouse Operations

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What do you do if your warehouse operations face obstacles and challenges during a layoff?

1

2

3

4

5

6

1 Assess your needs

2 Communicate clearly

3 Train and cross-train

4 Monitor and adjust

5 Recognize and reward

6 Here’s what else to consider

Warehouse Operations

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