3 Reasons Talent is Even More

Important in Omni-Channel

Presented by: Blaine Kelley,

CBRE

NEWS FLASH

September 19, 2014, 2:15 PM

Kohl’s is adding 9,300 people to

warehouse workforce...

FedEx expects to add 50,000 package helpers, drivers...

UPS announced

plans to hire 90-

95,000 workers to

handle the

anticipated surge

in package

deliveries between

October

and January…

Reason #1: The Big Picture

• Bloomberg Video “How Amazon’s Largest Distribution Center Works” 1.2 MSF – Phoenix, AZ | 50,000 seasonal workers

Reason #1: The Big Picture

• Omni-channel requires a

different level of Talent

making it easy for the

consumer.

• This makes it very

complicated on the

backend.

• Today’s focus is on talent,

specifically within an “o.c.”

fulfillment center, but the

talent conversation must

sit at the top of your

organization.

• If you don’t have talent,

you don’t get orders out

the door… COMPLEXITY =

speed + flexibility

+ cost service

balance + talent

0%

20%

40%

60%

80%

100%

Effective TDprogramimpacts

performance

Our TDprogram isexcellent

Agree Neutral Disagree

Reason #1: The Big Picture

“It always comes back to

this: Do you have the right

talent that is able to lead the

organization in the future?

If anybody asks about what

keeps me awake at night,

that’s still it.”

• Source: Brian Gibson, Auburn University

Reason #1: The Big Picture

• Household Job Growth – 2014

Source: CBRE Labor Analytics

Reason #1: The Big Picture

• Income Growth – 2013

Source: CBRE Labor Analytics

Reason #2: Omni-Channel DC Labor

• 3x typical warehouse environment

• Flexible workforce to fulfill at any given time

• Part of customer experience (not considered an expense)

• Formal training is required

• Availability of temporary labor

• Competitive environment, growth in retail/construction

• New skills require 3x screening, training & leadership

MORE DEMAND

+

MORE RISK

Reason #3: Competitive Advantage

1. What tools are available to you in the planning process?

2. What should you be looking for?

3. How will you do it?

– Internally

– Word of Mouth

– SWAG

– Empirically

OPPORTUNITY

Do Your Homework….Make it an Advantage

Distribution Skill

Set

Unfavorable

Favorable

Resources & Tools

Summary

• Labor represents 15-20% of Supply Chain costs

• New market frontier, especially with surge demand

• $1/hr means $1 million (500 employees)

• Strategic planning = competitive advantage

$1 x 500 people

2080 annual hours

$1 MM+

Questions & Answers

CONTACT

Blaine Kelley

CBRE

404.923.1496

blaine.kelley@cbre.com

@supplychnblaine

Q & A