Due to surge demand, contract manufacturers and contract packagers frequently need more people and more flexibility to package products, run fill lines and do a host of manual tasks. Until recently, operations leaders have typically relied on temp agencies. But hiring a temp agency is a ‘cost-plus’ model rife with risk.Today, there are more innovative ‘fixed-cost’ alternative labor solutions to consider as explained in this infographic.
First, we’ll look at the costs and risks of using temp agencies. Then we’ll explore an alternative and smarter way to manage labor-intensive operations.
Today, contract manufacturers, contract packagers and other packaging operations leaders can think smarter about staffing for demand surges. Instead of using a ‘cost-plus’ model, consider a ‘fixed-cost’ model with an outsource partner. A fixed-cost outsource partner will charge a fixed cost-per-unit (CPU) to run a line, a job or an entire program. You know your exact costs and can shift all the risk of managing labor to them.There are several flexible ways to work with an outsource partner:
The benefits of using an outsource partner are numerous and include:
Many supply chain experts recommend outsourcing manual labor just as you would other non-core competencies or low-profit areas of your business. However, not all outsource partners offer the same versatility. To win the labor game of the future, begin exploring smart ways to partner with others who specialize in flexible labor management for your packaging operation.Have questions about fixed-cost flexible labor programs? Give Brendon McGann a call at (704) 559-9272. Brendon is Productiv’s SVP Supply Chain and has worked with many contract manufacturers, packagers and other companies to implement profitable fixed-cost labor programs.
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