The right framework and training are crucial to lowering costs in labor management and freight consolidation operations, says Jeff Clark, executive vice president of ODW Logistics.

Clients are always looking for ways to lower costs, Clark says. Today, many are hoping that artificial intelligence can help them do that. In the warehouse, for instance, AI is helping operators see where order picking can be done in a more timely and cost-efficient manner. “It’s done in an encouraging way,” Clark says. “It’s not meant to degrade pickers at all. It's meant to say, if you did this, you will be more effective.”

Inefficiency factors into a number of situations, he says. For instance, how much time is wasted in starting up a shift, or on breaks or in restrooms? Clark says reasonable standards can determine if employees are not in a productive environment. Ascertaining that is not meant to put people in a “bad light,” but to increase productivity. “You can manage that. You can make a decision about what the right process is.”

Price doesn’t determine which is the right labor-management tool, Clark says. “I would tell you the most important part is about the level of training.” 

Retailers know that truckload means fewer deliveries versus less-than-truckload, but they probably don’t know how to build loads, Clark says. They may not know how to marry one’s freight with that of other retailers, so a full truckload can be delivered. A third-party logistics provider or consultant can advise on that. It’s also important to ensure that the right pallet heights and weights are used throughout the vehicle. so the truck can be maximized.

“That’s better for the retailer from an unloading standpoint.,” Clark says. “All of this goes back to answering: How do we deliver freight more effectively via retail?”