Preparing for Christmas Orders
As we begin to enter the autumn and winter months many companies and factories will be preparing for the busiest time of the year.
For some companies this time of year yields 80% of their business orders and preparation for this is key to success. How do they manage to keep up with the huge demands?
Large warehouses and despatch depots ramp up their production annually. The last two months of the calendar year in America take many business from the negative red to the positive black. Companies plan for this huge spike in spending, benevolence, giving gifts, and personal consumption of gifts. The season brings a rapid explosion of purchases that must be met with professionalism and timeliness.Therefore, large companies with large amounts of capital prepare for this surge in sales through increased productivity. The productivity of these warehouses and despatch depots is based on both human capital, brick and mortar capital, and technology capital.
While a surge in machinery is not really possible due to specialized training, maintenance, costs, etc., it still does happen to some degree. Additional forklifts are employed for use through rental companies. Pallet turners are used in abundance. Picking and packing robots are used throughout the calendar year and are really tested for productivity during the final two months of the calendar year.
Surprisingly, while machinery and technology maintain an increasing hold in our economy, nothing can really replace human capital, especially in a time pinch. Without fail, most warehouses experiencing a spike in seasonal productivity rely heavily on human capital. Temporary hiring agencies experience a frenzy of activity during November and December annually. Often, October also displays increases in temporary hiring movements.
Temporary workers are efficient for many reasons, thus making them ideal choices for seasonal spikes in productivity. Seasonal workers can be paid less, do not require certain types of insurance, can do basic labor with minimum training, and do not require long-term investment by the company. Furthermore, they can more easily be released due to the seasonal nature of purchases in material goods in America.
Companies will begin to hire these temporary workers as early as September and as late as December. For the most part, these seasonal workers will be let go immediately after the spending frenzy has ended in the first two weeks of January. Their work in warehouse productivity is not seen by most of America, but is certainly necessary to field the amount of demands that the American people present during the final months of the calendar year.
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ABOUT THE AUTHOR
Colin McDonald writes on behalf of Paynes Pallet Inverters