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How Floor-Level Insights Fuel Supply Chain ROI · Speaking of Supply Chain

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Speaker 1: You're listening to Speaking of Supply Chain, a meeboch podcast.
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Speaker 1: This is a show for logistics professionals looking to learn
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Speaker 1: more about the latest innovations in supply chain. Each episode
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Speaker 1: will feature a conversation on topics such as mitigating supply
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Speaker 1: chain disruption and reducing risk, current automation trends, sustainability initiatives,
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Speaker 1: and more. Let's dive right in.
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Speaker 2: Hello, and welcome to Speaking of Supply Chain, where we
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Speaker 2: explore trends, current events, and innovations impacting the logistics and
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Speaker 2: supply chain industries. I'm your host, Ellen Wood. High turnover
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Speaker 2: rates and labor shortages remain pressing challenges in the warehousing industry,
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Speaker 2: further complicated by declining interest and persistent turnover. Given the
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Speaker 2: ongoing expansion of e commerce and the demand for efficient
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Speaker 2: distribution networks, strategic workforce planning is more critical than ever before.
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Speaker 2: Here to speak with me today about a platform seeking
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Speaker 2: to support companies facing these types of challenges is Tim Renier,
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Speaker 2: CEO and founder of smart Access.
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Speaker 3: Welcome Tim, Hello, thanks for having me. Exciting stuff to
1:09
Speaker 3: talk about.
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Speaker 2: Of course, great to have you on the show today.
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Speaker 2: We're here to talk about warehousing industry and staffing and
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Speaker 2: training challenges. So what are some of the primary challenges
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Speaker 2: that distribution centers specifically face in terms of productivity, workplace
1:30
Speaker 2: management and what's going on because this is a huge
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Speaker 2: topic right now.
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Speaker 3: Yeah, Well, I think the thing is is that people
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Speaker 3: think it's a training conversation. And what I have experienced
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Speaker 3: and what I've seen is when I go into buildings
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Speaker 3: and I think about these people in these buildings trying
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Speaker 3: to move the boxes and the volume of goods they
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Speaker 3: need to move, is there's a burden of execution that
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Speaker 3: is on the floor. And so you have these walls
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Speaker 3: and the burden of execution lands on the shoulders of
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Speaker 3: these wonderful people that are general managers, assistant general manager,
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Speaker 3: ops managers, frontline leaders and supervisors. And then you have
2:11
Speaker 3: the frontline workers. And what we see is their job
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Speaker 3: is to scale individual performance and a lot of the
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Speaker 3: things that they've been given and the tools have said, well,
2:21
Speaker 3: we ran them through the program that said that they
2:24
Speaker 3: should know what to do. Now you go and make
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Speaker 3: it happen, and then they have to do that and
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Speaker 3: there's just like for us as we see it, we
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Speaker 3: just like that's the hard part of the work, Like
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Speaker 3: thanks for the program that I went through, and it
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Speaker 3: took me, I don't know, a couple of days at
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Speaker 3: a computer screen. Like now I go to go out
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Speaker 3: there and actually get the job done. And that is
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Speaker 3: the hard part, honestly. I mean, that's what they all
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Speaker 3: exist for. That's why continuous improvement exists, is can we
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Speaker 3: actually do the work at scale in a sustainable way.
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Speaker 3: So their challenges are all those things you said at
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Speaker 3: the beginning, like I got turnover, I got people not
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Speaker 3: that interested in the work. It's hard work, like all
3:01
Speaker 3: that stuff. It's getting more and more complicated, and now
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Speaker 3: I have to make do with what I have and
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Speaker 3: with the people that are there and willing to work,
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Speaker 3: and I don't really have the tools to get the
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Speaker 3: job done. So I think that's the biggest issue is
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Speaker 3: actually executing the job.
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Speaker 2: So these outdated training methods, I mean obviously getting a
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Speaker 2: new job and sitting in front of that computer to
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Speaker 2: go through the orientation module and you know, seeing all
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Speaker 2: the things that you can be doing is not it's
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Speaker 2: not that old, but it is. That's been training modules
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Speaker 2: and that's how training happens and onboarding happens for you know,
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Speaker 2: twenty thirty years. That's a little bit outdated by now,
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Speaker 2: isn't it.
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Speaker 3: I think so, I think, I mean, it's part of it.
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Speaker 3: It's kind of like you go to get your drivers.
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Speaker 3: I have young teenage have teenage kids, and they had
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Speaker 3: to go and they had to do a written test,
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Speaker 3: and that's what we've stopped at. There's the written test,
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Speaker 3: but to get your drivers, actually do a road test.
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Speaker 3: And so when you get out on the floor, it's
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Speaker 3: in the doing that matters. The reason. Like, it hit
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Speaker 3: me like a ton of bricks. We used to sell
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Speaker 3: to like learning and development people and I went to
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Speaker 3: an operator and I said, oh, like, proficiency is someone
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Speaker 3: that has went through the training. And he laughed at me.
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Speaker 3: He said, that means nothing. That doesn't help me at all.
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Speaker 3: Proficiency is can they do the job or not? And
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Speaker 3: that's that's the hard part. And so lots of people
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Speaker 3: do tricks. I see some tricks like let's gamify it,
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Speaker 3: let's treat these people like you know, like candy crush addicts,
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Speaker 3: Like what's like to bring them in and let's like
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Speaker 3: throw stuff in front of them and say let's just
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Speaker 3: do that. I'm like, that's kind of insulting to their intelligence.
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Speaker 3: These people like they're not We're not trying to sell
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Speaker 3: ads to these people. I know it works for Facebook
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Speaker 3: or Twitter, like they want to keep you engaged, but
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Speaker 3: these people there, this is hard and it's meaningful work.
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Speaker 3: So let's treat it that way. And so let's talk
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Speaker 3: about the work on the floor. So that's how I
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Speaker 3: see it, and I think that's where training probably misses
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Speaker 3: the point a little bit.
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Speaker 2: So with smart Access, and you're mission in the supply
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Speaker 2: chain and logistics sector specifically, tell us just a little
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Speaker 2: bit about it in general.
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Speaker 3: So in general, we're trying to drive operational outcomes. Okay,
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Speaker 3: so that's the start put, not learning outcomes, operational outcomes,
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Speaker 3: and that's productivity, accuracy, safety, Those are like the main things.
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Speaker 3: There's more to it, but that's the main performance. And
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Speaker 3: so smart Access the way we look at it is
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Speaker 3: if you can take the standards and the behaviors on
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Speaker 3: the floor and make sure that those are working together,
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Speaker 3: then you have the outcomes that you're looking for. Someone
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Speaker 3: has designed this work specifically, and most people have designed
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Speaker 3: it to be sustainable, and we want to be able
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Speaker 3: to get out on the floor and make sure that
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Speaker 3: the behaviors are matching and supporting the standards, and so
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Speaker 3: smart access brings in the information to first of all,
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Speaker 3: gather that information what are the behaviors from the floor,
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Speaker 3: using supervisors and using leaders that are on the floor,
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Speaker 3: gather that information, expose the gaps where that behavior isn't
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Speaker 3: matching to SOP, and then scale the gap closing. And
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Speaker 3: so to do that, there's mechanisms within the platform to
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Speaker 3: expose the gaps and then close the gaps. And then
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Speaker 3: we bring in all the data that you would need
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Speaker 3: to actually have an engaging conversation with that frontline associate
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Speaker 3: that you can see the data and bring it together.
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Speaker 3: So there's lots of tactics within the platform, but essentially
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Speaker 3: we're scaling individual performance.
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Speaker 2: Okay, so how is this different than another off the
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Speaker 2: shelf LMS, you know, labor management solution.
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Speaker 3: Yeah, labor management. Well, we'll start with learning management. Learning
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Speaker 3: learning management has drives learning outcomes. We drive operational outcomes.
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Speaker 3: So that's the main difference. It's not really on the floor,
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Speaker 3: it's it's in the doing, so that it's where the
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Speaker 3: work happens, is where we want to be. So that's
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Speaker 3: where that when it comes to labor management, I would say,
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Speaker 3: labor management is like the score in a basketball game.
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Speaker 3: The score is fifty to sixty eight or something like that. Great,
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Speaker 3: we know what these people are supposed to be doing
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Speaker 3: in the timeframe, we know what they're trying to hit.
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Speaker 3: But what happens if we're losing? What happens when things
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Speaker 3: are accuracy goes up? It In some ways, I would
7:20
Speaker 3: look at it like that is like a EKG. One
7:24
Speaker 3: customer said this to me, it's like smart access. There's
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Speaker 3: an EKG that tells you, like, that's the score. That's
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Speaker 3: like a labor management system. Smart access is the blood test. Okay,
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Speaker 3: Like these are the actual things that we need to
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Speaker 3: change so that the score goes up into the right
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Speaker 3: So things that work out, And so that's kind of
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Speaker 3: and that's actually where we fit on the floor, is
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Speaker 3: that we're not we take labor management data that those
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Speaker 3: are good pieces of data to have when you talk
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Speaker 3: to someone like what's your performance, your CPH, your UPH
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Speaker 3: your direct time, indirect time, all those things matter, scan
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Speaker 3: times and everything. But when you bring it together with
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Speaker 3: behavior information, then you have something to work with. You
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Speaker 3: actually have meat on the bone.
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Speaker 2: All right, So what ways does this smart access equip
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Speaker 2: those managers to support I mean you said, you know,
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Speaker 2: they've they're entering the information as they're you know, observing,
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Speaker 2: How does it help them, especially when you're looking at
8:18
Speaker 2: all different kinds of levels of ability amongst employees, how
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Speaker 2: does that help them support and improve their teams?
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Speaker 3: So, first of all, the big thing is you have
8:30
Speaker 3: a lot of battlefield promotions out there, right, Like, there's
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Speaker 3: people that have been in the job. They show up,
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Speaker 3: they're nice people and they're willing to work, and sometimes
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Speaker 3: they get to be the managers. And that means that
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Speaker 3: that doesn't necessarily mean they know the job inside and out.
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Speaker 3: And there's some that know it inside and out that
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Speaker 3: are not so warm and fuzzy, and you know, like
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Speaker 3: there's there's different people. Fundamentally, where we start is you
8:53
Speaker 3: have a job function. What is the outcome of that
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Speaker 3: job function? And so what we do when we meet
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Speaker 3: new customers is we ingest all of their SOPs using AI,
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Speaker 3: so if not hard, we take it into our system
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Speaker 3: and from there when we generate an observation based on
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Speaker 3: SOPs so that when they walk out on the floor,
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Speaker 3: they're going to observe someone. So observation is a great
9:13
Speaker 3: tool to engage someone on the floor, and when you
9:16
Speaker 3: get out there, it's job function specific, it's prompt level.
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Speaker 3: It's prompting that person to look for something, and even
9:23
Speaker 3: the responses are telling you how the job is done.
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Speaker 3: So are they putting the labels in the right place?
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Speaker 3: Yes or no? Bad prompt? Are they putting the label
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Speaker 3: in the bottom right corner as of the palette? Are
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Speaker 3: they applying it in a is it sticking the right
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Speaker 3: way or whatever? So it's specific to that and so
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Speaker 3: then they're looking reading the prompt, watching the behaviors and
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Speaker 3: their response, and the back end is getting graded and
9:52
Speaker 3: also being put into such a fashion that when the
9:56
Speaker 3: system says now it's time to talk and coach that
9:59
Speaker 3: frontline meter, it gives them all of the things to
10:02
Speaker 3: think about, all of the things to talk about, and
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Speaker 3: it's all generated from the system. So we give them
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Speaker 3: the ability to walk it on the floor with confidence
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Speaker 3: and have that engaging conversation with that frontline associates. I've
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Speaker 3: seen it once. I walked out with a guy and
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Speaker 3: he was observing someone and he said, well, this person
10:21
Speaker 3: used to work at Walmart. Says, well, at Walmart, we
10:23
Speaker 3: used to park our equipment on the right side and
10:26
Speaker 3: get off on the left. And he said, well, we
10:28
Speaker 3: get off park on the left and get off on
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Speaker 3: the right, like whatever, just for him to have the
10:33
Speaker 3: confidence that that's the difference, like, I appreciate what you
10:35
Speaker 3: did at Walmart, but because of the we're set up,
10:37
Speaker 3: we're not Walmart or something different. You need to do
10:40
Speaker 3: it this certain way because it matters. If that guy
10:43
Speaker 3: didn't have that information with him, then maybe he wouldn't
10:45
Speaker 3: have been successful in saying no, we do it this
10:47
Speaker 3: way because of this reason. And so even also within
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Speaker 3: our platform, there's you can insert videos at every prompt
10:55
Speaker 3: level of how things you know, like if you want
10:57
Speaker 3: to do a pace walk, like this is what pace
10:59
Speaker 3: looks like, you could do it, or you can like
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Speaker 3: if there's a video right there, it says, well, this
11:02
Speaker 3: is what it looks like. And you have videos and
11:05
Speaker 3: you can have articles that support the entire job function.
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Speaker 3: So it's quite comprehensive, so that leader is armed when
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Speaker 3: they go it on the floor to have that conversation.
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Speaker 2: I mean, that's huge to have all of that frontline
11:17
Speaker 2: visibility right there in the moment as you're doing it
11:21
Speaker 2: into where those skill gaps are and as I understand,
11:26
Speaker 2: you know, once you've entered the information, it does give
11:28
Speaker 2: you prompts to then say, oh, well, then this is
11:32
Speaker 2: how you need to coach, or this is what you
11:33
Speaker 2: need to say, or here's a video that you can
11:35
Speaker 2: use to demonstrate. So how is that like really driving
11:41
Speaker 2: that continuous improvement? Is that working to help develop those
11:47
Speaker 2: team members into the more valuable team members that are
11:54
Speaker 2: getting the work done? I mean, is it better than
11:56
Speaker 2: traditional methods of just you know, having the shift meeting
12:00
Speaker 2: at the end of the day and here's where we
12:02
Speaker 2: were and oh I saw this and I saw that.
12:04
Speaker 2: I mean, this feels a lot more personal and intentional.
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Speaker 3: Yeah. I think the first thing is when we think
12:10
Speaker 3: about the operation. Let's say you have two hundred people
12:15
Speaker 3: on the floor. If you look at a bell curve
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Speaker 3: of their performance, it's going to be a bell curve
12:19
Speaker 3: like there's people that fit there, and if we can
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Speaker 3: move that whole thing up into the right, we're winning.
12:24
Speaker 3: And that's the results we see. We see productivity performance
12:28
Speaker 3: depending on how you look at it. We've seen buildings
12:31
Speaker 3: grow to ten percent improvement across the building. And what
12:35
Speaker 3: we do see is we can see individuals improving fifteen
12:38
Speaker 3: to twenty percent. Especially new people where their productivity goes
12:41
Speaker 3: up that much, that's amazing. And the other thing that's
12:45
Speaker 3: surprised us when we started doing this is the even
12:47
Speaker 3: high performance performing people, their productivity went up six to
12:51
Speaker 3: seven percent performance productivity depending again how you look at it.
12:55
Speaker 3: And so that is that's meaningful to organizations where they've
13:00
Speaker 3: invested hundreds of millions of dollars onto the labor on
13:04
Speaker 3: the floor and it increases that return on invested capital.
13:08
Speaker 3: It's like the most important thing that they do because
13:13
Speaker 3: it's usually sixty to seventy percent if their spend is
13:16
Speaker 3: on the labor. And that's just on productivity. We we'll
13:19
Speaker 3: probably talk about retention and ramp time, but driving that
13:24
Speaker 3: is just I mean, that's what they're looking for. That's
13:26
Speaker 3: why these continuous improvement engineers are at these buildings, is
13:29
Speaker 3: to support that execution and increasing that productivity from every
13:35
Speaker 3: person on the floor.
13:36
Speaker 2: So you've given us a couple of examples of measurable outcomes.
13:41
Speaker 2: What is like a standout, like the best customer significant
13:48
Speaker 2: change that you've experienced with this tool.
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Speaker 3: There was a large retailer. We started out with them
13:57
Speaker 3: and we did three buildings and used the system, and
14:01
Speaker 3: we were able to compare before and after, and there
14:04
Speaker 3: was a couple of things that mattered. One is that
14:06
Speaker 3: we saw buildings improve performance by ten to fifteen percent,
14:10
Speaker 3: so that was huge. Then the other thing that was
14:12
Speaker 3: exciting for them was retention, and retention increased before we
14:20
Speaker 3: were there, they were at about forty eight percent retention
14:24
Speaker 3: at one hundred and eighty days. And so this study
14:27
Speaker 3: actually was over two years, thirty five hundred people. Okay,
14:30
Speaker 3: so it was a big study. So forty eight percent
14:33
Speaker 3: at one hundred and eighty days quick quits. They're just tough, right,
14:36
Speaker 3: Like you lose people. If you can keep them using
14:38
Speaker 3: to one hundred eighty, they're going to stay, right, So
14:41
Speaker 3: that that's the goal. I mean, there's a lot of
14:43
Speaker 3: ninety day quick quits, but we're thinking how do we
14:45
Speaker 3: get them to one eighty because then they stay and
14:47
Speaker 3: they are valuable to you've recouped your investment to get
14:50
Speaker 3: that person's skill after using smart access. Again, this is
14:53
Speaker 3: a two year study, thirty five hundred people. That retention
14:57
Speaker 3: at one hundred eighty days was eighty five percent, so
15:00
Speaker 3: they're only losing fifteen percent rather than fifty two percent.
15:04
Speaker 3: So yeah, and we attribute that to a scaled engagement.
15:09
Speaker 3: People know what they talk about when they get on
15:11
Speaker 3: the floor, and they have that engagement across that network.
15:15
Speaker 3: And you've been in these buildings. Some of them are dark.
15:19
Speaker 3: Sometimes you're in the back corner in the stacks. It's
15:21
Speaker 3: not like some people love it, like just don't talk
15:24
Speaker 3: to me. But people are human. I treat them like humans.
15:27
Speaker 3: They want to like, what does my boss even think
15:29
Speaker 3: about me? Like? Am I going to get fired? And
15:31
Speaker 3: what did I do? I didn't hit my goals? I
15:33
Speaker 3: might like. So it just don't treat the people in
15:36
Speaker 3: these buildings like just a number and just a unit
15:40
Speaker 3: per hour, Like we got to think a little bit
15:42
Speaker 3: differently about them. So anyway, that that was pretty exciting
15:45
Speaker 3: for them, and they've since rolled across their entire network
15:48
Speaker 3: and they spend about twenty five thousand hours a month
15:50
Speaker 3: in the platform. They have a big network, so it's
15:53
Speaker 3: a big deal.
15:54
Speaker 2: Oh wow, that's huge. Well, and so I guess that
15:58
Speaker 2: that leads to kind of a follow up question of
16:01
Speaker 2: you know, yes, we do have workers who care and
16:05
Speaker 2: who want to do a good job. We want to
16:08
Speaker 2: treat them like humans. But we all know that there
16:11
Speaker 2: are those employees that don't care, that are just there
16:16
Speaker 2: because they need a paycheck or because lots of reasons.
16:21
Speaker 2: My father worked in a production facility of food production
16:25
Speaker 2: facility and warehousing in the Deep South, and there are
16:30
Speaker 2: different attitudes toward work and especially toward manual, blue collar labor.
16:36
Speaker 2: So how does this help when you're when you're dealing
16:39
Speaker 2: with those individuals that are only there because they have
16:43
Speaker 2: a bill to pay that would normally just you know,
16:46
Speaker 2: make enough money to get to get by that month
16:49
Speaker 2: and then say, Okay, well I don't want to work here,
16:51
Speaker 2: so I'm not going to anymore.
16:53
Speaker 3: Yeah, well, sometimes just having a bill to pays enough
16:57
Speaker 3: to keep you there. So that's a real like we
17:02
Speaker 3: have all been there where it's like I got to
17:04
Speaker 3: do this thing I don't like because I need, you know,
17:07
Speaker 3: to pay my electricity bill. I think the way I've
17:09
Speaker 3: always tried to build the software is to think about
17:12
Speaker 3: the human that's on the other side, both the supervisor,
17:17
Speaker 3: leader and the frontline worker. And when you engage I believe,
17:21
Speaker 3: I mean, this is what I believe is that people
17:23
Speaker 3: want to do meaningful work and if you can be
17:26
Speaker 3: good at your job, even if it's just because I
17:30
Speaker 3: need to pay the bills, I think that gives you,
17:34
Speaker 3: I don't know, maybe a level of joy or completeness
17:37
Speaker 3: as a human. So I think helping people be even
17:41
Speaker 3: masters of the work, even if it's like a creuddy job,
17:45
Speaker 3: I think is really important. Every one of us wants
17:48
Speaker 3: to succeed in life, like we want to like make
17:50
Speaker 3: progress and learn and be better. I think that's something
17:53
Speaker 3: that's human. And so helping someone be excellent at work,
17:57
Speaker 3: I think is a really noble thing. And these organizations,
18:01
Speaker 3: if they can do that, that's the hard part is
18:04
Speaker 3: like how do you make people care? And you see
18:06
Speaker 3: it in these buildings, wonderful people that really do care
18:09
Speaker 3: about these workers. Like you've been to their stand ups.
18:12
Speaker 3: You've seen the way they congratulate each other, how they
18:15
Speaker 3: help each other out. It's a really lively environment. And
18:18
Speaker 3: sometimes people, you know, you just want to I've seen it,
18:21
Speaker 3: like that guy's in the like odd shaped section of
18:26
Speaker 3: shipping and like packaging and we just leave them be
18:30
Speaker 3: and whatever, and that there's people like that and you
18:32
Speaker 3: just need to me. But ultimately, if people can do
18:35
Speaker 3: good work, I think that's what you can offer them
18:37
Speaker 3: is that they can get their job done and do
18:39
Speaker 3: it well. People will go through what they will. So
18:42
Speaker 3: that's the way I see it.
18:43
Speaker 2: I don't know well, and it reminds me. I don't
18:45
Speaker 2: know if you've ever read the book Gung Ho. It
18:48
Speaker 2: was really popular about twenty years ago. Was the first
18:52
Speaker 2: time I was introduced to it, and it's a great book.
18:55
Speaker 2: I've got it on my desk actually, and that was
18:57
Speaker 2: one of the things I forget. It goes through a
19:00
Speaker 2: couple different examples of animals, and one's the spirit of
19:05
Speaker 2: the squirrel and then another one's a beaver. But one
19:08
Speaker 2: of them is that, you know, people need to feel
19:10
Speaker 2: like their work matters at the end of the day.
19:12
Speaker 2: And I can see from a from a company's perspective,
19:15
Speaker 2: of course you have you have goals, you have operational goals,
19:19
Speaker 2: you have you know, throughput goals, But what does that
19:22
Speaker 2: mean to the person and really personalizing that information and
19:26
Speaker 2: not just you know, yeah, you hit the goal, congress,
19:29
Speaker 2: you know you did your job, or you didn't hit
19:31
Speaker 2: the goal. Now we're going to have corrective you know,
19:34
Speaker 2: corrective action. And so I feel like this tool gives
19:39
Speaker 2: them at least a little bit more insight into Okay,
19:43
Speaker 2: not only how to do this more effectively or more efficiently,
19:47
Speaker 2: but why it's important to or you know, there's probably
19:51
Speaker 2: a safety concern. I know we're going to get into
19:53
Speaker 2: that subject in just a minute, but it feels like
19:56
Speaker 2: this this really gives that that supervisor, and to your point,
20:00
Speaker 2: might be someone who doesn't necessarily have supervisory or managerial
20:04
Speaker 2: training or expertise, but it gives them the ability to
20:08
Speaker 2: put that that work into perspective for the employee.
20:13
Speaker 3: Yes. Yes, And it's such an interesting at least in
20:17
Speaker 3: these buildings, is that it's an ecosystem, Like what you
20:19
Speaker 3: do matters. Like if you don't clean as you go,
20:22
Speaker 3: that means the next person does. If you don't level pick,
20:25
Speaker 3: that means that the next person's got to reach in
20:27
Speaker 3: to pick. You know, like it all matters. And if
20:31
Speaker 3: you can work together and see that, I think it
20:33
Speaker 3: makes a difference, then you feel like you're actually part
20:35
Speaker 3: of a team. But if you don't have a mechanism
20:38
Speaker 3: to bring that thinking in and scale it, then I
20:42
Speaker 3: mean I had a customers say to me, you know
20:44
Speaker 3: we did what smart Access did. We can't We tried it,
20:49
Speaker 3: like we tried to get this done and maybe we
20:52
Speaker 3: can find a good manager and a good couple of agms,
20:55
Speaker 3: oms or whatever to do the work. But to scale
20:58
Speaker 3: that across our network, we've tried and we can't do it.
21:01
Speaker 3: And so this is just a tool to scale what
21:03
Speaker 3: they already do. They all know that this stuff is important,
21:06
Speaker 3: but now let's make it easier for them. Let's give
21:08
Speaker 3: them the tool so they can stand on the tool
21:10
Speaker 3: and just actually be engaging in connect with the people.
21:13
Speaker 3: And these numbers that I was sharing, that's the proof
21:17
Speaker 3: in it, and that's I think. We've talked to our
21:20
Speaker 3: frontline workers and say, well, what do you think of
21:22
Speaker 3: this observation, like we are observing you every ninety days,
21:25
Speaker 3: and they say they really like it because it's like
21:28
Speaker 3: someone's talking to me about my work. They're helping me
21:30
Speaker 3: get better. And it's hard as a manager to get
21:34
Speaker 3: off your seat you're looking at all these dashboards and
21:37
Speaker 3: data points in their office, get out on the floor
21:40
Speaker 3: and talk to the people that are producing for the business.
21:44
Speaker 3: And so that retention number says to me a lot
21:48
Speaker 3: about it's one thing to keep people, but it means
21:51
Speaker 3: that we're doing the right things and helping them because
21:53
Speaker 3: if they don't like it, they're out of there. Like
21:55
Speaker 3: it's not it's their choice, like they have opportunities.
21:59
Speaker 2: Yeah, so does the platform interface with other functions of
22:07
Speaker 2: personnel and employee retention, like you know, HR timekeeping or
22:11
Speaker 2: even I mean we're talking about warehousing and distribution like
22:14
Speaker 2: the WMS or the ERP system.
22:16
Speaker 3: Yeah, so we bring the system is an open architecture,
22:20
Speaker 3: so we love taking data and it's kind of the
22:23
Speaker 3: place that data should reside because this is where the
22:26
Speaker 3: rubber hits the road, right, it's on the floor. So
22:28
Speaker 3: we take HRS data for your rosters and we push
22:33
Speaker 3: information into learning management system. So almost every one of
22:36
Speaker 3: our customers has a learning management system and uses us
22:39
Speaker 3: as well because we're just we're at different angle on it.
22:43
Speaker 3: We take in LM data if they don't have it.
22:46
Speaker 3: Sometimes we'll take in WMS data. Time and attendance is
22:50
Speaker 3: something that I think we're working on right now to
22:52
Speaker 3: bring in. It's not that it's complicated, but we're using
22:55
Speaker 3: that to make sure we know who's on shift so
22:58
Speaker 3: that we can say, okay, like here's your labor, here's
23:01
Speaker 3: your volume for the day, here's the people you have
23:03
Speaker 3: on shift. Let's make sure that we have the right
23:06
Speaker 3: people in the right places. And if we need to
23:08
Speaker 3: move people, like if thing some conveyor goes down and
23:11
Speaker 3: you've got to go fast and you've got to get
23:13
Speaker 3: your cut time, we've got to move the right people over.
23:15
Speaker 3: Sometimes you want to bring your best people. Sometimes you
23:18
Speaker 3: want to bring those that need to become the best people,
23:20
Speaker 3: and that decisions made on the floor. So giving that
23:22
Speaker 3: visibility to frontline leadership is really valuable.
23:27
Speaker 2: Yeah, which which asset, which individuals not assets? Which individuals
23:31
Speaker 2: are available at any time?
23:34
Speaker 3: Yes?
23:34
Speaker 2: Yeah, So I had touched on safety a little while back.
23:39
Speaker 2: What types of what types of safety awareness or improvements
23:44
Speaker 2: are ingrained or or a part of smart access. I
23:49
Speaker 2: mean obviously you were you were talking about the the
23:53
Speaker 2: forklifts or the machinery and getting out on the right
23:55
Speaker 2: versus on the left, and you know that that comes
23:58
Speaker 2: down to it's it's a safe safety issue because everyone
24:01
Speaker 2: knows what the expectations are and when we're in these
24:05
Speaker 2: large facilities, there's a lot of heavy moving equipment, there's
24:08
Speaker 2: a lot of heavy palettes, and it's a dangerous working environment.
24:14
Speaker 2: So safety has to be top priority for not only
24:19
Speaker 2: the employees, but the managers and so what kind of
24:24
Speaker 2: safety I guess awareness or learning and education is built
24:29
Speaker 2: into these these standard operating procedures that you are showing
24:34
Speaker 2: and evaluating.
24:35
Speaker 3: So there's two ways. One is consistently bringing a top
24:38
Speaker 3: of mind. So there's organizations use smart access to do
24:43
Speaker 3: safety observations, audits, and and because of the system manages compliance,
24:49
Speaker 3: it helps you because it's easy to do. You pull
24:51
Speaker 3: up your mobile device or a laptop or whatever, a
24:54
Speaker 3: tablet and it's like you need to get your coverage.
24:58
Speaker 3: It will tell you like who you need to speak
24:59
Speaker 3: with and observe and coach people on. So that's a
25:04
Speaker 3: very specific part of it that helps deliver the way
25:10
Speaker 3: we need to behave to be safe on the floor,
25:12
Speaker 3: and that's just scaling that and being consistent. That's number one.
25:17
Speaker 3: But the other thing that happens is that sometimes we
25:21
Speaker 3: think that we've told everyone how to be safe, but
25:24
Speaker 3: we haven't. And so there is an interesting situation organization
25:28
Speaker 3: they were doing breakpack and the person was not using
25:33
Speaker 3: kevlar gloves to open up right, So that's a safety issue.
25:38
Speaker 3: So the person raises it. They raised it within smart
25:41
Speaker 3: Access or feedback loop and it goes back and we
25:44
Speaker 3: have the sop and the doesn't say that you need
25:46
Speaker 3: to use kevlar gloves. So nobody is saying use kevlar gloves. Well,
25:50
Speaker 3: obviously that's an oversight. Let's fix that, right. So what
25:53
Speaker 3: happened it was actually fascinating. So this was in Dallas,
25:56
Speaker 3: someone says, we don't have the sop for using flour gloves. Well,
26:01
Speaker 3: change it in the sop immediately in smart access. That
26:05
Speaker 3: then changes it in the observation. The very next day
26:09
Speaker 3: in Sacramento, the same observation was completed and they said
26:14
Speaker 3: we don't, oh, we need to use kevlar gloves. We
26:18
Speaker 3: actually don't have kevlar gloves on site. We need to
26:20
Speaker 3: get Keller gloves. And so from the fundamental way of operating,
26:26
Speaker 3: because the system is on the floor pulling in information
26:30
Speaker 3: from the floor and has all of the standards inside
26:33
Speaker 3: of it, we can now change and so for safety,
26:36
Speaker 3: the change just happened organically. Everyone just like, oh, now
26:39
Speaker 3: we need gloves and let's get that going. And then
26:42
Speaker 3: the platform also does. This is something new for us
26:45
Speaker 3: is that this is a funny example in some ways
26:48
Speaker 3: is we have what are called action plans where we
26:50
Speaker 3: can roll out change to the buildings. So now we
26:53
Speaker 3: have an action a way to build in the platform
26:56
Speaker 3: to say, okay, everyone, Kevler gloves are coming to your building.
26:59
Speaker 3: Do you have it? Now that you have it? Is
27:01
Speaker 3: it on the floor now that program's running SOPs change observations.
27:06
Speaker 3: It's our new standard we use Kevler gloves in this area.
27:10
Speaker 3: So it does everything because we're trying to think like, well,
27:13
Speaker 3: what are these this is the job of these execution,
27:15
Speaker 3: these people to execute. The burn of execution is on them.
27:18
Speaker 3: How do we scale that? And that's one thing the
27:19
Speaker 3: platform does, and it helps with the change management as well,
27:22
Speaker 3: because it's all about getting the sustainability out of the
27:25
Speaker 3: front line. So that's how we care about.
27:29
Speaker 2: That's huge.
27:30
Speaker 3: That is that is so huge.
27:32
Speaker 2: So what really brought about the inspiration for this, because
27:37
Speaker 2: you seem incredibly passionate about it. Is this something that
27:41
Speaker 2: you saw the problem and decided to develop a platform
27:47
Speaker 2: or was it something that was just always kind of
27:49
Speaker 2: in the back of your head getting percolating and working on.
27:53
Speaker 2: Was it one horrendous incident.
27:57
Speaker 3: No, it was more of I think I'm interested in
28:02
Speaker 3: systems and when you go into any process driven labor market.
28:09
Speaker 3: What you see is there's things happening on the floor
28:12
Speaker 3: and there's management, and management says they just need to
28:16
Speaker 3: do this thing, and the front line says, if management
28:20
Speaker 3: understood how things really work, they wouldn't ask us to
28:23
Speaker 3: do that one thing. So you just see that and
28:26
Speaker 3: it's like an age old problem, like this is around forever.
28:30
Speaker 3: And I was it was a weird thing. I was
28:32
Speaker 3: reading about Napoleon and it was just a small thing
28:35
Speaker 3: about his rise to power. And the reason why Napoleon
28:38
Speaker 3: rose to power is he allowed his armed forced people
28:43
Speaker 3: to have backpacks. And I believe they'd never backpacks were
28:49
Speaker 3: never used until this moment. I may not be like,
28:51
Speaker 3: I might be remembering it wrong, but essentially it gave
28:54
Speaker 3: everyone backpacks. So there's these people and they were fighting
28:57
Speaker 3: the Prussians, and the Prussians were very like in line,
29:01
Speaker 3: executed to perfection, and Napoleon said, here's a backpack. Take
29:05
Speaker 3: everything you need so when you're on the battlefield you
29:07
Speaker 3: can make the changes and you can address the enemy.
29:10
Speaker 3: And so they would hide because they didn't do it
29:12
Speaker 3: like the Prussians. They would hide behind fences and go
29:14
Speaker 3: on rooftops and they decimated them. And what happens is
29:18
Speaker 3: you brought down the information to the level of the battlefield.
29:22
Speaker 3: You gave them the power to make changes and to
29:24
Speaker 3: attack the problems as they saw. And so that was
29:27
Speaker 3: the inspiration. I was like, Oh, all these software systems
29:30
Speaker 3: are top down pushing, pushing down. What happens And the
29:34
Speaker 3: experiment was, what happens if you give the power to
29:36
Speaker 3: the floor and will they push up? And that's exactly
29:39
Speaker 3: what they do. The truth is on the floor, it's
29:43
Speaker 3: in the execution, it's in the behaviors. So let's give
29:47
Speaker 3: them the ability to see the behaviors and then the
29:51
Speaker 3: feedback loop to make the changes. And that is what
29:53
Speaker 3: is so powerful about smart access. It's not the software,
29:57
Speaker 3: it's the frame and the system of pushing from the
30:00
Speaker 3: bottom up into from the floor up, and that's where
30:05
Speaker 3: the power is because that's where all these people are
30:07
Speaker 3: there for one reason is to support the front line,
30:10
Speaker 3: and that's why we built the software. So there's a
30:12
Speaker 3: long story on how we got there. We were working
30:14
Speaker 3: with a retailer and they just introduced us to distribution.
30:17
Speaker 3: I was like, oh my gosh, these people really need
30:19
Speaker 3: this help because it's a really defined and necessary work,
30:22
Speaker 3: like we really actually need you to do it this
30:25
Speaker 3: way because it matters to us. And trying to do
30:28
Speaker 3: that to a person is very hard. No one, I'm
30:31
Speaker 3: not easy to Like, maybe you're the same, but if
30:33
Speaker 3: someone tells me to do something exactly a certain way,
30:36
Speaker 3: I don't want to do that.
30:38
Speaker 2: Naturally, Absolutely, there's that just don't. I don't know if
30:44
Speaker 2: it's it's some sort of edo something, just pushing back
30:48
Speaker 2: and saying no, why why.
30:52
Speaker 3: I don't want to do it that way.
30:54
Speaker 2: I'm smarter than the exactly that would be my sixteen
30:58
Speaker 2: year old pushing back and say saying why do I
31:01
Speaker 2: need to do this this way? And so then you
31:03
Speaker 2: have to go through the whole explanation of well, if
31:06
Speaker 2: you do it your way, this is the result, and
31:08
Speaker 2: if you do it my way, this is the result.
31:11
Speaker 3: Yeah, And it's a great example. And that's what it's
31:16
Speaker 3: like in these buildings, Like we meet organizations and it's like, well,
31:20
Speaker 3: at our building, we do it this way, and then
31:23
Speaker 3: the continuous improvement person's going, are you kidding me? That is?
31:29
Speaker 3: I get it, but that doesn't like we have the
31:31
Speaker 3: whole picture. And so that's the struggle. And so we
31:34
Speaker 3: want to bring that information down to the floor so
31:36
Speaker 3: that everyone can see what's happening, so we can make
31:39
Speaker 3: it make it work for everyone. So that's the inspiring.
31:44
Speaker 2: Do you get a lot of pushback from employees who
31:46
Speaker 2: are who are in these situations where they're like, yeah,
31:49
Speaker 2: there's there's what said, and then there's what's done. You know,
31:53
Speaker 2: this standard operating procedure is not standard in the least.
31:56
Speaker 2: This is not the way we do it here. But
31:59
Speaker 2: it's because this is the way we've always done it.
32:02
Speaker 2: Overcoming that objection and that that attitude that just straight now,
32:10
Speaker 2: how does how does that work?
32:13
Speaker 3: Because yeah, I built this software. I wish I could
32:18
Speaker 3: experience it more, but I'm in buildings a lot. I
32:22
Speaker 3: think that there is that part. But that's what we
32:24
Speaker 3: built into the software to surface that information. So anywhere
32:29
Speaker 3: along when you're observing or skill building someone or certifying someone,
32:34
Speaker 3: there's places in the software to feedback in and we
32:36
Speaker 3: get it a lot. This doesn't apply to us, We
32:39
Speaker 3: don't do it here. All that that information is rich
32:42
Speaker 3: for continuous improvement and industrial enginey they what do you mean
32:45
Speaker 3: you don't do it that way? This is the way
32:47
Speaker 3: we need you to do it well why, and they
32:49
Speaker 3: can actually collaborate and dialogue within the platform to surface
32:53
Speaker 3: those things that are like and people learn like there's
32:57
Speaker 3: there's people on the floor can tell you how to
32:59
Speaker 3: do it better, and if they listen to it, they're
33:02
Speaker 3: going to improve their organization. It's just there's all these
33:06
Speaker 3: minds out there that could be helpful. You might as
33:08
Speaker 3: well leverage them. You're paying them to be in your building.
33:11
Speaker 3: They are a resource for you on how to make
33:14
Speaker 3: things better, and so it goes both ways, of course.
33:17
Speaker 3: But yeah, we've been we really were conscious that in
33:19
Speaker 3: the platform, let's allow them to feedback that we need
33:22
Speaker 3: to hear from them.
33:23
Speaker 2: And that's huge because there are a lot of in
33:27
Speaker 2: the logistics industry. There's there's a lot of especially in
33:30
Speaker 2: the past few years, we lost a lot of people
33:33
Speaker 2: through COVID just because you know, the world shut down.
33:37
Speaker 2: Some of this work was deemed necessary, some of it wasn't,
33:41
Speaker 2: and people just decided, I mean a lot of the
33:43
Speaker 2: older workforce just decided this is this is not worth
33:46
Speaker 2: my effort anymore. I'm just going to retire now, retire
33:48
Speaker 2: a little early and just be done with work. And
33:51
Speaker 2: we lost a lot of tribal knowledge and just a
33:55
Speaker 2: lot of historical data that went with them because it
33:59
Speaker 2: was their way of doing it and not the standard
34:02
Speaker 2: operating procedure that's outlined in a dusty binder somewhere on
34:06
Speaker 2: the shelf. So I feel like this gives at least
34:11
Speaker 2: the opportunity to capture some of that while it's still there,
34:14
Speaker 2: while these people are still on the floor, at least
34:18
Speaker 2: from the ones who are still around, to not lose
34:23
Speaker 2: potentially good information because the reason they're doing it differently
34:29
Speaker 2: may not make sense to management, but it does make
34:31
Speaker 2: sense to those people on the floor. They do it
34:34
Speaker 2: that way for a reason. They buck the system for
34:37
Speaker 2: a reason, because whatever they've decided to do or however
34:42
Speaker 2: they've decided to do it was born out of a
34:44
Speaker 2: necessity somewhere along the line.
34:46
Speaker 3: And it's either I need to be faster, I got
34:49
Speaker 3: to get my job done, or this doesn't hurt my
34:52
Speaker 3: back to do it this way, and the way you
34:54
Speaker 3: told me to do it might hurt, like you know
34:55
Speaker 3: what I mean. There is a reality to execution that
35:00
Speaker 3: isn't in the binder, and that's why we built our
35:02
Speaker 3: SOP module. We weren't thinking about it, but we're just like, oh,
35:06
Speaker 3: like this is a dead document. If it became a
35:08
Speaker 3: living document with inputs from the floor all the time,
35:11
Speaker 3: it gets better, like it becomes stronger, and it helps
35:14
Speaker 3: everyone in the whole chain of operations make better decisions.
35:19
Speaker 3: And so we see people and sometimes people will chase
35:25
Speaker 3: the dollar and the pay, like, let's give them more
35:27
Speaker 3: money to do that, and I think you should like
35:29
Speaker 3: pay them really well, like this is hard work and
35:31
Speaker 3: they deserve it. But chasing people with the dollar is
35:35
Speaker 3: one way to do it. But also chasing them but
35:37
Speaker 3: let's do excellent work, I think is more sustainable and
35:40
Speaker 3: long lasting. And we all part of the stories of
35:42
Speaker 3: certain organizations that if you don't hit your number, you're out,
35:45
Speaker 3: and those people end up at other organizations and they
35:48
Speaker 3: want to be in a rich environment where they can
35:50
Speaker 3: do their work. And so if you can make that
35:53
Speaker 3: a better place for them to work, they can do
35:55
Speaker 3: good work. They aren't going to chase the dollar. They're
35:58
Speaker 3: going to chase being part of the team. And that
36:01
Speaker 3: does not mean that we're just trying to drive down
36:02
Speaker 3: the pay, like we need to be able to make
36:05
Speaker 3: a living here. But it maybe brings the wrong behavior
36:09
Speaker 3: if you're chasing that potentially.
36:12
Speaker 2: Yeah, possibly, So what other trends? I mean, we've seen
36:18
Speaker 2: a decline in the amount of labor in this sector,
36:23
Speaker 2: so people are not looking for these jobs. They're not
36:26
Speaker 2: searching for them, they're not interested in them. In many cases,
36:31
Speaker 2: they tend to just go to whoever's available in that
36:34
Speaker 2: geography who needs jobs. And it's even that's declining because
36:39
Speaker 2: better and more fun jobs are available out there. Like
36:43
Speaker 2: you said earlier, you know, standing around in a warehouse
36:46
Speaker 2: is not the most glamorous job. So I mean that's
36:51
Speaker 2: one trend that's on the horizon, is we're losing labor
36:54
Speaker 2: force in this area. But what other.
36:56
Speaker 3: Trends are you seeing?
36:57
Speaker 2: I mean you see fulfillment centers and distribution centers and warehousing.
37:03
Speaker 2: What's happening there that we need to get ahead of
37:06
Speaker 2: and what is smart access trying to get ahead of there?
37:09
Speaker 3: I think number one is we're trying to not I
37:12
Speaker 3: think we're starting from a position is this is valuable,
37:14
Speaker 3: important work and we need to respect the effort. I
37:17
Speaker 3: think that's like the fundamental part of it. And that
37:21
Speaker 3: doesn't mean it's not hard and that we don't have
37:23
Speaker 3: high expectations, but we make sure that and I see
37:27
Speaker 3: that in the people and the folks in the buildings.
37:31
Speaker 3: I think that automation is coming. It's getting more and
37:34
Speaker 3: more prevalent, and so I think people's jobs may become Again,
37:40
Speaker 3: this is all active theory. I would say, I'm not
37:43
Speaker 3: an expert on labor markets or anything and how they
37:45
Speaker 3: really work, but I think that automation will change the
37:49
Speaker 3: work that's done in these buildings and people will interact
37:51
Speaker 3: more with machines and help those machines run. And so
37:56
Speaker 3: I think that's a positive thing. Like if a machine
37:59
Speaker 3: can do the work, the heavy lifting, so to speak,
38:01
Speaker 3: then you can be part of that that that's a
38:03
Speaker 3: good thing. I think that I know that we're bringing
38:08
Speaker 3: a lot of AI into the work, into the leadership
38:11
Speaker 3: on the floor, and that's supporting the work. And then
38:16
Speaker 3: of course, I mean people think about robots and they
38:18
Speaker 3: think that they're coming and they're going to replace people
38:21
Speaker 3: and different things, and I would just I get the
38:23
Speaker 3: sense of expansion. If AI increases GDP by ten percent.
38:27
Speaker 3: I heard someone say, well, what do you think is
38:29
Speaker 3: going to happen? Just more so there's going to be
38:31
Speaker 3: more demand, more complexity, more like I want my stuff
38:36
Speaker 3: delivered faster, and I want it done more precise, Like
38:40
Speaker 3: it just becomes more so that I think that the
38:42
Speaker 3: work is actually going to get harder to satisfy that
38:46
Speaker 3: end user, your SLA, if you're a third party logistics company,
38:49
Speaker 3: it's just it's going to get harder. So we're going
38:51
Speaker 3: to need more systems, more automation. I think overall it's
38:55
Speaker 3: just expansion, and we're going to need even more people too.
38:59
Speaker 3: I don't think it's going to be less people. I
39:01
Speaker 3: think it's gonna be more. Like I was on site
39:02
Speaker 3: with an organization. They're putting in this huge like hive
39:07
Speaker 3: cold storage hive and they're moving everything. It's like a
39:09
Speaker 3: dark place. That building is going to double in size
39:12
Speaker 3: headcount to support that. So it's not like it's shrinking
39:16
Speaker 3: now the work they're doing the stream they need less
39:18
Speaker 3: of this certain thing, but more people managing the robots
39:22
Speaker 3: and the thing. So I guess I would just my
39:25
Speaker 3: belief in transit. It's more expansion, bigger, faster.
39:31
Speaker 2: That's great in our industry.
39:32
Speaker 3: Yes, absolutely, yeah it is. It is so, and I
39:37
Speaker 3: think this group is really resilient, like they're getting hit
39:39
Speaker 3: like tariffs are happening. And this is just a comment,
39:42
Speaker 3: but the tariffs are happening. And I asked them what
39:43
Speaker 3: do you think? What do you think? And they just say,
39:45
Speaker 3: We're just going to keep executing. We know how to
39:47
Speaker 3: do this. We've been through COVID. We figured out how
39:50
Speaker 3: to survive difficult times and there was more resilient than ever.
39:54
Speaker 3: So more change, they're going to be able to handle it.
39:57
Speaker 3: I'm excited about watching these people figure it out. It's exciting.
40:00
Speaker 1: Yep.
40:01
Speaker 2: Absolutely, Just like me sleeping in the Miami Airport at eighteen,
40:05
Speaker 2: I learned how to manage to get through anything.
40:09
Speaker 3: That's fine, that's right, absolutely absolutely well.
40:15
Speaker 2: That brings us to the end of our episode. Thank
40:17
Speaker 2: you so much, Tim for joining me today and telling
40:20
Speaker 2: us a little bit more about this tool and what
40:23
Speaker 2: you've seen going on in these types of facilities. It's
40:26
Speaker 2: been great to have you on the show.
40:27
Speaker 3: Thank you so much. This has a great conversation.
40:30
Speaker 2: Thanks Ellen to our listeners. If you've found today's episode valuable,
40:34
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Speaker 2: someone who's shaping the future of operations.
40:48
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