What is Variable Demand in Warehousing?
Variable demand refers to fluctuations in volume orders, inventory movement, or staffing needs over time. These fluctuations can be driven by factors such as seasonal spikes, promotional events, product launches, supply chain disruption, or unexpected surges in demand.
Being able to adapt to variable demand is crucial for success in warehousing. The cost of poor adaptation is lost efficiency and lost money. If your business is overstaffed you are wasting money on idol warehouse temp staffing. If you are understaffed you could miss SLAs, see warehouse worker burnout, and pay for overtime work.
Smart Strategies to Stay Flexible
There are three effective strategies warehouses use to handle demand swings. They are cross training core team members, optimizing warehouse workflow, and using on-demand staffing apps.
Cross-Training Core Team Members
The first strategy for handling variable demand is to train full-time staff in multiple roles. These roles could include picker, packer, inventory, forklifts, etc.
The benefit of training warehouse staff in multiple roles is better coverage without hiring more FTEs. This can help balance warehouse operations but does not provide more workers.
If the increased or decreased demand is only in one department this is an effective strategy. However, if the demand is increased in multiple or all departments then this strategy will be ineffective.
Warehouse Layout & Workflow Optimization
Designing a warehouse with adaptable zones for fluctuating workloads is a strategy to systematically be able to handle variable demand.
Utilizing visual management and mobile racking to quickly shift operations to meet real time demand.
AI and WMS are developing to reshape operations with real-time forecasting. Using AI and human warehouse workers together create the most efficient warehouse optimization.
Pairing data driven operations with warehouse job apps creates an effective warehouse strategy for variable demand.
Using On-Demand Staffing Apps Like Bacon
On-demand warehouse job apps allow warehouses to post shifts last-minute or schedule ahead. Find warehouse staff and gain access to background checked temporary warehouse workers instantly. And staff warehouse shifts with workers who have accurate ratings and reviews.
Traditional temp agencies near you rely on outdated processes which results in slower response times and inflexibility. For temp labor to be optimized for variable demand it needs to have the flexibility to meet real time demand and temp agencies can not provide this.
Bacons is a warehouse job app built for flexibility. Businesses can post shifts just for when they need them. Workers can pick up warehouse shifts on their phones.
Bacon has transparent and scalable pricing with warehouses getting to choose what workers wages are. Temp agencies are not transparent leaving you to wonder how much does a temp agency charge per hour?
Staffing apps have the ability to staff all kinds of warehouses with all kinds of general labor. Bacon can be used to hire picking and packing workers during peak hours or find pickers and packers for inventory cycles or returns.
Building a Flex-Ready Warehouse Staffing Plan
To prepare your warehouse for variable demand there are 4 steps you can take.
First use data to forecast demand spikes. AI learning warehouse management systems have been developed to help with this need.
Second, build a bench of trusted on-demand workers using platforms like Bacon. With features like Bacon Score and Invite Back, Bacon is designed to build a plug and play bench of workers.
Third, identify the roles most impacted by variability. These roles could include packers, loaders, receivers, etc.
Lastly, regularly evaluate fill rates and labor efficiency. Being on top of evaluating warehouse operations helps managers catch problems in efficiency before they become difficult to fix.
Flexibility Is the Competitive Edge
The best warehouses don’t guess, they plan ahead. Using strategies they create a plan that can flex with variable demand to allow for them to work efficiently in any situation.
On-demand staffing platforms give warehouses agility without the overhead of overstaffing. Look beyond temp agencies and explore warehouse job apps that let you find warehouse workers when you need them most.
