Outsourced solution speeds turnaround, avoids penalties

Three years since its
launch, Outsourced
Project Solutions
(OPS) is making
major inroads in the
warehousing environment
with a solution that general
manager Tyron Hubbart
believes is unique.
The company was launched
in response to an increasing
demand for an outsourced
solution for labour-intensive
activities that are not part
of a company’s core business
model.
“Most labour-intensive
activities require special
supervision and management
in order to ensure that
productivity levels are
maintained,” he said. “We
build a project model to
ensure that we can take these
labour-intensive non-core
activities from the client and
turn them into individual
projects. Work is then
invoiced on a per item basis
to the client, and in many
instances the
staff are also
remunerated
per completed
activity or
task. Thus
OPS is able to
ensure that
staff are never
idle and are
only paid for
completed
tasks –
which has
a dramatic
and positive
effect on
productivity
rates.”
This has proved
particularly valuable in the
warehousing space.
“A major challenge for
warehouses is to keep to
the strict turnaround times
set by container lines and
transporters for the packing
and unpacking of containers,”
he said. “Adhering to these
deadlines often requires the
use of labour
that has
limited time
to load each
container.
The same
constraints
exist in
bagging
operations,
where clients
order the
cargo to be
bagged but
have very
tight delivery
times. This
often requires
the bagging
plants, block stacking and
loading to be completed on
very strict deadlines.”
According to Hubbart
these activities often take
longer than planned resulting
in additional labour costs
and punitive charges from
transporters and shipping
lines for delays.
“The secret is to maintain
the required productivity
on these activities to avoid
any unnecessary costs. Most
of these challenges are best
solved by outsourcing these
labour-intensive activities
so that each activity can be
managed by the contractor
as a small project, with
specific production targets
and direct supervision,” he
said. “Also, the contractor
often charges a fixed per
item rate, so there are never
any variable costs for the
warehouse. The warehouse
pays a fixed rate per ton or
per container, and it’s up to
the contractor to ensure that
he maintains productivity
and manages the risks. The
warehouse manager can then
focus on the job of logistics
as he no longer has to spend
his hours chasing up teams
of labour.”
INSERT & CAPTION
OPS is able to ensure
that staff are never
idle and are only paid
for completed tasks —
which has a dramatic
and positive effect on
productivity rates.
– Tyron Hubbart