Many companies underestimate the HR and operational challenges that come with today’s omni-channel environments. Attend this session to hear what makes these environments more complex and demanding. Learn about the specific business challenges that come with omni-channel. And see the tools that can help executives plan and launch successful operations. Attendees will learn: The five steps for successful omni-channel operations The labor and HR risks in omni-channel operations

1. 3 Reasons Talent is Even More Important in Omni-Channel
Presented by:
Blaine Kelley, CBRE

2. 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…

3. Reason #1: The Big Picture
•Bloomberg Video “How Amazon’s Largest Distribution Center Works” 1.2 MSF – Phoenix, AZ | 50,000 seasonal workers

4. 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

5. 0%
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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

6. Reason #1: The Big Picture
•Household Job Growth – 2014 Source: CBRE Labor Analytics

7. Reason #1: The Big Picture
•Income Growth – 2013 Source: CBRE Labor Analytics

8. 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

9. 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

10. Distribution Skill Set
Unfavorable
Favorable
Resources & Tools

11. 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+

12. Questions & Answers
CONTACT
Blaine Kelley
CBRE
404.923.1496
blaine.kelley@cbre.com @supplychnblaine
Q & A