Marketplace Dynamics for Larger Companies
Matt HorineJul 29, 2019
Operations leaders know what a great economy can mean for their business – expansion opportunities, bringing in more orders, engaging new projects, and building a lasting model for unexpected variations in future economic climates.
The most under-rated operational constraint a business faces with a surging economy is labor. The realists know the challenges – how do you capitalize on growth opportunity, while simultaneously facing enormous constraints in operational capacity? What about seasonal demand spikes in an already constrained environment?
Flexing too quickly can leave a business exposed to unexpected economic events – and moving too slow will allow room for competitors to maximize market share and potentially gain sustained dominance in your space. Great economic environments produce real opportunities, and the winners are those who adapt quickly with a sustainable model. Operations leaders know exactly what a tight labor market can produce. The challenges are well defined, but the reality is something that must be faced. The traditional problems in a tight labor market include workers leaving for nearby opportunities for cents on the dollar, creating instability and turnover, which can lead to aggressive hiring initiatives or utilizing temp staffing to address headcount. Trying to address traditional problems can leave your business open to the following solutions, explained in a recent Dallas Morning News article:
Instability in the labor force can leave your business in a tight spot, trying to answer challenges through a combination of options listed in the survey. Solutions like those expose a foundational flaw in the mentality around building labor flexibility – it means that growth never occurs, and everyone is working with a fixed amount of resources.
Moving beyond the go-to answers like “spend more money” requires a different kind of solution – and a marketplace concept for labor can address each of the "fixed resource" options. Unemployment numbers only address a certain part of the population – there is a large, untapped group of people who face real constraints of a standard nine-to-five schedule. There is also a new reality in the labor force – more people are looking for flexibility in the hours, scope, and variety of work they do. Manufacturing and distribution have never been an outlet for this highly qualified but under-served component of the labor force. The Veryable platform attracts workers, or “Operators”, specifically focused on manufacturing, warehouse and distribution environments.
What this means for your business – allowing you access to qualified workers who opt into the work as you describe it, and are rated by the marketplace of businesses where they’ve had experience.
If you’re looking for a solution to labor challenges, there is no reason why you would limit that to a single site just to address a specific problem like headcount. The real impact of using a marketplace is to build a sustainable solution – to receive real value, it must be built for the enterprise and not just a specific pain point. This approach can be taken in two ways to receive maximum operational value:
If your business has multiple locations in a specific market, you can use Veryable to bring in workers to address immediate problem areas like order backlog, special projects, or address seasonal demand. Unlike a temporary worker or a traditional full-time hire, the Operator is used exactly for the labor you need, with no commitment to continue when the pace is slower. When demand spikes back up, you now have a person with experience in “your labor pool” – meaning the work can be posted on-demand, and at any of your locations within the geographic market:
To gain the best operational value and maximize impact across the enterprise, businesses should utilize the marketplace at multiple sites to build impact – the more locations that utilize, the more standardization will occur – meaning more of your sites become flexible and able to respond to challenges when presented with growth opportunities.
For more information about Veryable on-demand labor for manufacturing, warehouse and distribution operations, please view our website at www.veryableops.com or create your business profile at company.veryableops.com.