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Material Handling Information - High Labor Cost
   
Labor
High Labor Cost

Workers at Excel previously hand to manually handle 100-150 lb. boxes of beef in a 28ยบ F refrigerated environment.

Automated storage and transport systems at Excel's new distribution center eliminate most manual processes, improving speed and productivity while reducing labor costs.
Problem
  • High use of labor-intensive material handling processes increases costs.
  • Conventional labor costs increase proportionally with sales growth.
  • Hazardous work conditions reduce labor productivity, increase wage scales.
  • High employee turnover rates increase training costs, reduce productivity.
  • Reduced available labor pool increases wage scales.
Solution
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