Several years ago having just completed the installation, debug, and startup of a major new batch order picking and sorting system, I was “invited” to stay onsite through the first peak volume season (September through mid-December) leading up to Christmas. I used this as an opportunity to gain first-hand experience on just how challenging this period can be.

This is true regardless of economic conditions. However, for some DCs which have been forced to reduce their full-time work force, the upcoming peak period may be more challenging than it normally would be.

As a result, many businesses are concerned as to how they can get through this year’s peak shipping season without disappointing customers or killing their already over stretched work force.

Hands-on Training is Key to Having a Successful Peak Season

Of course, it's normal to hire additional part-time staff to cover peak periods of activity. How many people are needed depends heavily on how well-trained they are and whether or not they stick it out through the toughest times. Some will leave after receiving their first paycheck, while others will hang on for a few weeks before withering away.

Given the typically high turnover rate for temps, if you wait until the demand hits to bring them in, you risk losing capacity until they are fully trained and you are adequately staffed. In light of this reality the training investment may seem costly. Still, the better trained they are, the fewer you will need at crunch time.

The following are a few practical staffing suggestions for temps: 

• People referred by current full-time employees generally make the best part-time workers.
• Realistic opportunity for full-time employment for the best performers is a strong incentive. This is especially true given the current high unemployment rate.
• Begin hiring a month or two before the peak. Since demand is actually lower at this time, the total hours required to get the work done won't keep everyone busy for eight hours a day. Take some of the surplus hours away from the full-time employees in order to maximize training time and make it worthwhile for the part-timers to show up. There will be plenty of time to go around once the season hits.
• 100% quality checks on the temps for the first week or two is feasible during this period of lower activity. It will help in identifying additional training needs.
• Train on the simplest tasks first, but allow time to cross-train on tougher tasks. When things get crazy, you'll be glad you did!
• Bonuses for sticking it out through the season are appropriate. Include something for the full-timers who helped with recruiting. Their example and peer pressure help to keep the team together.

Additionally, you might try some of these: 

• Divide complex tasks into two parts; one simple and the other more difficult. Then staff with a team of a full-timer paired with a part-timer.
• Some processes, like gift-wrapping, are in much heavier demand at the Christmas peak. Consider an assembly line approach with short, well-defined work steps. Be careful to keep the line balanced. And, make sure that there is an experienced full-timer in place for quality control.

Eliminate Speed Bumps

In large operations, high-speed unit sortation systems often represent the most critical constraint. There are a number of opportunities to squeeze a little more capacity from them: 

• Test different wave picking strategies like limiting the pickers to no more than two active pick waves at a time. This should reduce the amount of cases being re-circulated.
• Review critical path conveyor speeds to determine if they can and should be increased.
• Increase the batch size by putting more orders in a chute (after-sort lane), possibly combined with the teaming suggestion above.
• Bypass sortation with orders that may be completed with a sub-set of popular products.
• Increase the use of the chutes (after-sort lines) by dynamically assigning orders to them as products appear from picking. An extension of this approach will result in a continuous flow, waveless process that enhances both picking and sorter utilization.
• Maintain a steady flow through critical capacity bottlenecks such as manifesting and shipping by balancing labor in upstream processes.
  
  

Final Thoughts

There are many ways to survive the peak season, but all of them require starting the planning well before the bow-wave hits.

Agree or disgree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

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