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## Properties - Meeting Date: Unknown - Meeting Type: 1x1 - Note Type: Summary - Attendees: Scott Warner, Steve Wade ## 1. Meeting Summary I spoke with Steve to get a quick read on current warehouse and logistics conditions, particularly staffing pressure and order flow volatility. He had just visited another operation to review 'speed cells', which appear to be a potential storage/picking solution for small-item inventory, especially marketing goods and Fan Shop products. It sounds like a proposal may be coming later. The larger focus of the discussion was labor capacity in the warehouse. Steve outlined that the team is carrying six temps, has recently lost two full-time employees, and had also released some temporary workers before a recent disruption pushed them back behind. The issue is being compounded by ongoing back orders coming in from container receipts, which is creating significant operational workload even if it is not highly visible in standard business metrics. As of yesterday, they were managing 341 SKU back orders totaling roughly 44,000 units and about $2.9 million, which is driving a high volume of fragmented deliveries and added handling effort. We discussed whether to add temporary labor back into the operation or manage through overtime. Steve's view was that they may need to bring in another temp specifically to support end-of-line box handling so full-time pick/pack staff are not pulled away from core work. I told him to use his judgment operationally and not let potential pushback on temp agency invoices slow down the work. If Finance raises concerns, I will handle that. My priority is making sure the team can get the work done. There was also some underlying concern from Steve about limited visibility and access to Robert, along with a general sense that the operation is being forced to react to issues outside its control. Overall, the discussion reinforced that logistics is absorbing a lot of disruption from system and supply variability, and workforce planning remains difficult in that environment. ## 2. Attendee List - Scott Warner - Steve Wade ## 3. Action Items - [Steve Wade] Continue evaluating whether to add temporary labor capacity, with emphasis on an end-of-line support role for box handling. - [Steve Wade] Communicate to the team/agency that the business is likely moving forward with recruiting for an additional temp, recognizing hiring will not be immediate. - [Steve Wade] Share or route any proposal that comes forward on the 'speed cells' storage/picking solution. - [Scott Warner] Handle any Finance pushback, including from Amity, regarding temp agency invoice increases if additional labor is needed. - [Scott Warner] Follow up with Steve later in the day by phone to walk through a separate issue and get his input. ## 4. Relevant Timelines - As of yesterday: Warehouse back orders stood at 341 SKUs, 44,000 units, and approximately $2.9 million. - Near term: Decision needed on whether to add another temp versus rely on overtime, based on current workload and incoming order/container activity. - Later that afternoon: Steve had a 2:45 commitment and expected to leave around 3:30 or later. - After Steve gets home: I asked him to ping me so I can call and discuss another topic. ## 5. Additional Notes - The 'speed cells' concept appears relevant for increasing pick density in a constrained footprint, particularly for smaller items and Fan Shop or marketing inventory. - Steve emphasized that the workload impact from back orders is real operationally even when it does not show up clearly in the metrics others typically watch. - Warehouse staffing decisions remain reactive because the team is dealing with system instability, back-order fragmentation, and changing demand conditions. - Steve noted that the current temp group is generally good, but the specific operational need at the moment is more physical end-of-line support. - The team recently reduced temp labor to retain stronger performers, but subsequent disruptions quickly reversed the benefit and created backlog pressure. - There is some ongoing frustration around lack of visibility into Robert's priorities and availability. While no decision came out of that topic, it is contributing to uncertainty in the operation.
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