1STRATEGY

Increase EngagementThrough Culture

For over 70 years, Fortna® has partnered with the world’s top brands to transform their distribution operations into a

competitive advantage. Fortna helps Clients make and keep bold promises to their customers – fast, accurate and cost-effective

fulfillment consistently at every touchpoint, across every channel. Fortna’s expertise spans distribution strategy, distribution

center operations, material handling automation, supply chain systems and warehouse execution software systems. We built

our firm on a promise – we develop a solid business case for change and hold ourselves accountable for results.

© 2019 Fortna Inc.

Sources: Bureau of Labor Statistics, DC Velocity, Pew Research Center, RILA, Manhattan Associates, Harvard Business Review

www.fortna.com

info@fortna.com

The Distribution Experts®

Use Technology toImprove Productivity4

STRATEGY

Distribution Labor ShortagesContinue, with No Signs of Abating

Go beyond compensation& benefits.

Create programs to engage employees.

Engaged employees increase profitability,

reduce turnover, and reduce the number of

safety/quality issues.

Millennials are now the largest generation in the workforce.

Millennials have different expectations for work.

Fix the

feedback

disconnect.

2STRATEGY

Look to UntappedLabor Pools

There are untapped, non-traditional sources of labor if you can

offer part-time or flex hours to accommodate them.

3STRATEGY

Make Work Funand Convenient

Add high-quality common areas,

multiple break rooms, cafeterias with

subsidized food, outdoor spaces,

fitness facilities and wellness

initiatives, child care and social

events that include family members.

Millennials value flexibility.

Crowdsourcing platforms can help

you offer part-time,

self-scheduling, and variable start

times while keeping full shifts.

Motivate employees through

smartphone apps and trackers

that reward desired behaviors.

Don’t let labor challenges stand in the way ofgrowth and profitability.

Now is the time to stand out as an employer and to implement creative

strategies to overcome the challenges. Choose a partner with the

experience to help.

Four Things Companies Are Doingto Overcome Labor Challenges

$15minimum wage for

warehouse employees at

U.S. Labor Force by Generation

1995

In millions

0

10

20

30

40

50

60

70

2000

Millennials

Gen Xers

Boomers

2005 2010 2015

A job you enjoy 50

40

36

34

27

24

19

44

38

39

36

30

20

22

38

31

26

31

15

20

17

Job security

Time off to meet

family or child

care needs

Good benefits

Opportunities for

promotions/

advancement

A job that

helps society

A high-paying job

2014 2016 20182008

500

1100

20182014

Unemployment in

US, UK and parts

of Europe

4%

<10% 39.2%

10-25% 29.5%

25-50% 21.0%

50-100% 8.0%

100-200% 1.7%

Over 200% 0.6%

annual turnover experienced

by 50% of employers >10%

increase in the number of

warehouse and transportation

jobs since 2014

50%

Hourly wages

continue to increase.

of employees want

daily feedback

60%ONLY

18%

of supervisors spend most

of their time interacting

with employees

Look for new

ways to justify

investments.

Get creative in expanding the pool of labor.

High School/

College Students

Mothers with

school-age

children

Veterans and

their spousesRetirees

Special Needs

WorkersEx-Convicts

Workers

Looking

to Supplement

Primary

Income

Crowdsource

Shifts

Use

Gamification

Automated visual or

audio clues to improve

picker productivity

and accuracy and

speed up onboarding.

Pick to Light

& Voice PickWorkers wear supportive gear to

reduce fatigue, enhance

movement and increase safety.

Exoskeletons

Realtime instruction displayed on

smart glasses - to increase

productivity and reduce errors.

Augmented Reality

Even mainstream

technologies are now more

cost-justified due to the

labor shortage – tote

stackers, wearables, etc.

Other

Technologies

Use

Human-Centered

Design Concepts in

your DC

The Distribution Experts®

Presented by

Labor Challenges, Trends

and Practical Strategies

22% Profitability

26% Employee Turnover

41% Quality Issues

48% Safety Incidents

Engaged Employees:

Fortna, The Distribution Experts®, can help.

helped justify investments in programs that engage workers and

enhance culture, aimed at increasing retention

$10 million in annual turnover cost