In any manufacturing, retail, or service business, labor is a critical component of operating and financial success. In many industries, labor costs are one of the highest areas of controllable expense. However, cost management is only one element of labor optimization. Companies must balance labor cost management with customer service and delivery. Reducing labor costs too aggressively can sub-optimize results and lead to lost revenue and profits. AlixPartners’ senior teams bring the expertise required to balance service and costs, and achieve the best outcomes.
Our expertise in labor optimization begins with understanding the strategic drivers of labor needs – from shop floor productivity and quality in manufacturing to the consumer experience in retailing and service businesses. We also bring insights into labor policies and requirements spanning US and international legal requirements. Our teams bring hands-on experience to all aspects of labor optimization – planning, budgeting, scheduling, allocation, incentives, and policies. Our approach to optimizing labor leverages fact-based analysis to identify opportunities, and we ensure that each dollar of invested labor has a payback that meets business hurdle rates.
We have partnered with business leaders across industries as they navigate these highly sensitive decisions. Our competitive advantage is our ability to bring external expertise and facts to critical labor-related situations coupled with our focus on implementable, high-impact outcomes.