The Logistical Lowdown

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Outsourcing: An Outside of the Box Solution to Labor Shortages

Posted by Bryan Keller on 6/15/18 2:18 PM
Bryan Keller
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Employee filling candy cane tree with product, employee sealing end of a plastic wrapped box, employee running packaging machine

On June 1st 2018, the Bureau of Labor Statistics released a statement saying, "The unemployment rate edged down to 3.8 percent in May." This is the lowest unemployment rate since 2000 and a sign that the job market has become even more competitive and "manufacturing employment continued to expand over the month (+18,000)." Additionally, their workforce statistics have preliminary job openings in manufacturing at 451,000 for April 2018.

As the competition for qualified workers continues to grow, manufacturers are needing to come up with outside of the box solutions for labor and staffing in order to meet customers' product demand. One way to combat the shortage in the labor market is to outsource aspects of your manufacturing to a contract packager.

We've talked about the benefits that can be realized by outsourcing to a trusted Contract Packaging partner in our blog such as:

  • Overcoming space constraintsBy outsourcing temporary or seasonal items, you open up your own facility to space needed for your primary products throughout the year
  • Focusing on core businessStrategic partnerships allow for the opportunity to focus on what you do best and allow your partner to fill the void where your team may lack experience or infrastructure
  • Increased Productivity: Contract Packagers use their knowledge and experience to eliminate inefficiencies to reduce costs and increase customer satisfaction in the long run
  • No capital investment for new products: As with many new product launches, demand is uncertain. A contract packager can focus on meeting demand levels while you focus on increasing sales
  • Access to a 3PL for Transportation and Warehouse management3PL companies can take over the supply chain processes that plan, implement, and control the flow and storage of goods for customers

With the current job market as it stands, how can a contract packager help you meet your demand for labor?

At our Keller Warehousing & Co-Packing facility in Napoleon, Ohio we have 70 full-time professionals with extensive experience in a wide variety of packaging methods including manual assembly and display building, ready to lend a helping hand. 

We are also adept at quickly on boarding new staff as needed to increase productivity to handle variations in customer demands. 

Scenarios when outsourcing packaging/assembly works:

  • Seasonality; ramp up (WHS) and meeting highly variable demand
  • New/frequent product launches 
  • High labor content packaging
  • Capability you don't possess like e-commerce
  • Quality inspections for manufacturing errors
  • Sorting
  • Labor constraints

And we can't forget to mention the other Keller affiliates, Keller Trucking and Keller Warehousing & Distribution that can help transport your product to be finished, store it, then send it on to your customer.

As a 3PL, we deal with a variety of projects that make us a Jack-of-all-Trades. We utilize lean manufacturing techniques to maintain efficiency with a high level of quality. We are very skilled at setting up quick projects in cells to assemble, sort, inspect and package products for the end consumer. We are prepared to help you meet your manufacturing demands. 

This is what we do ALL DAY, EVERYDAY! 

Submit a Request For Quote for Your Packaging Project

Topics: Co-Packing

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