A few years ago AMS became a B-Corporation and Social Enterprise. B-Corporations agree to the higher social and environmental standards that balance the needs of shareholders with customers, employees, the environment and local communities.
AMS Fulfillment is an employer of more than 500 individuals. Located on both the West and East coasts, the company does its best to balance the needs of clients and employees and also serve the local communities. Hand in hand with Workforce Development through education and training, AMS is keenly focused on the underserved job seekers, spanning a wide demographic from single mothers to the homeless, to veterans and seniors, to formerly incarcerated individuals and to individuals with disabilities.
AMS is involved in the community in many ways. One of the community organizations we support is Single Mothers Outreach. The following information comes from their website:
“Parenting is too important a responsibility to bear alone, yet all too often single mothers are forced to do just that. Because we believe that effective parenting leads to successful, well-adjusted children, Single Mothers Outreach scaffolds families facing sudden housing instability, income loss, emotional trauma, and social deterioration as the result of divorce, abandonment, or widowhood.
“With a mission to “empower single parents and their children by providing hope, support, and resources so families can become self-sustaining and thrive,” Single Mothers Outreach (SMO) directly helps single parents find jobs, get educated, secure housing, stabilize their children’s emotional states, manage their finances, and help one another.”
AMS Fulfillment works with Single Mothers Outreach regarding jobs and training. SMO is one of the organizations that has matched candidates with a program developed by AMS and College of the Canyons, the Pre-Apprentice Program. This program is focused on individuals who are struggling to gain and maintain employment.
Around Christmastime, AMS invites its clients to donate their overstock and/or gently used returns to SMO, with AMS providing the fulfillment services at no charge. By working together with our generous clients, we have been able to put clothing, shoes, toys, small appliances and products of all sorts and kinds into the hands of individuals and families in need of help. Most of the donations go to the organization’s boutique, Closet on Main.
Recently a visitor to our blog shared their organization’s offering, A Single Mother’s Guide to Digital Banking, while thanking us for our support of single mothers.
AMS appreciates the encouragement, and we encourage others to support Single Mothers Outreach. US and global citizens have recently entered a time period where wage earners will be under financial stress. Organizations like SMO will be essential to the wellbeing of working mothers as we move through these challenges. We encourage readers to support SMO and other organizations in their communities that serve those in need.
AMS Fulfillment has been environmentally conscious since opening its doors for business, adopting “think green” practices and improving on those practices as new information and new products become available. As a B Corporation with a genuine concern about the environment and the impact of packaging materials on the environment, we are working harder than ever to see what we can do to find and use materials that are not harmful.
There is significant momentum around the world to reduce or eliminate single use packaging. A recent article in agfundernews talks about government efforts, and the efforts of corporations being driven by consumers:
“Meanwhile, consumers are increasingly demanding more sustainable packaging materials and are using their dollars to speak for them. Half of consumers in the US and UK reported that they’re making a conscious effort to cut down on the amount of single-use plastic they consume, according to a 2019 study, while 42% said that choosing products made from recyclable or sustainable materials are an important factor in their day-to-day shopping decisions.”
A number of companies, with Walmart, Kellogg’s and Hershey among them, are setting timelines to switch to completely reusable, recyclable or compostable packaging. These companies and many others are looking to innovators with scalable packaging alternatives to conventional materials, and investigating some exciting new start-ups that are creating solutions.
AMS Fulfillment’s Green Team has been researching the latest in outside packaging and inside void fill. Hemp products are very versatile with different hemp materials creating biopolymers that can be used in many facets of the plastics industry. And there are many other solutions in the making as well.
Some examples are: 1) biodegradable plastic pellets from paper industry; 2) fully recyclable polystyrene packaging designed from the areca palm leaf; 3) bioplastic derived from potato industry residues; 4) containers that are created from sugar cane and corn starch derived from industrial waste products; 5) water soluble and biodegradable thermoplastic pellets based on casein, a milk protein; 6) bio resi systems that are suitable to bind a number of natural fibers like flax, hemp, pineapple, palm leaves, cotton, banana, and jute; 7) packaging material derived from seaweed and other plant materials; and 8) a foaming technology called 100BIOthat creates a biodegradable styrofoam that can compost in less than nine weeks without exuding carbon dioxide, heavy metals, or methane.
We’ll keep you informed as we examine the changes AMS Fulfillment can undertake to be even more ‘Good For the World.’
Each month the employees in our facilities nominate a team member who has provided outstanding service to AMS and its clients. Nominations are listed according to the facility. All of the AMS facilities are located in Valencia, CA, City of Santa Clarita.
As you will see from the comments, we depend upon and place great value in employees and their growth, job satisfaction and wellbeing. We know that our employees are the reason that AMS succeeds so well and continues to grow.
Congratulations to the following outstanding AMS Employees of the Month for January, 2020: Carmen M., Deborah H., Rosa L., Ana C. and Tangie D.
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Carmen M., Account Support (September 2019)
HQ Administration: 29010 Commerce Center Drive
Carmen is one of the newest members of our team. She is a true team player, always making herself available for any given tasks. She takes the time to treat each task with the same level of importance. Carmen is motivated, smart and always willing to lend a helping hand. She has learned so much in the last 3 months; how to use our system and all available resources. I am excited to see her growth with AMS – she’s a huge help, and I appreciate working with her daily. Thank you, Carmen for your efforts!
Deborah H., General Warehouse (July 2019)
HQ Warehouse: 29010 Commerce Center Drive
Deborah has been very reliable for us, and she always gets the right things done. She is always willing to adjust her schedule when we need it. She is reliable, and pays great attention to detail. Deborah is a very important part of our team!
Rosa L., General Warehouse (January 2015)
SCO3: 27801 Avenue Scott
Rosa is one of the most hard-working, detailed, positive employees I have ever worked with. I know I can give her a task and walk away without having a worry. She always goes above and beyond the call of duty. he is also not afraid to ask questions when she is not fully confident about something. Rosa gets along with everyone, and gives respect to all her co-workers. She is a cornerstone to the operations, and we are very fortunate to have an employee who cares about her work like she does.
Ana C., Shipping Lead (January 2015)
WIL: 28936 Avenue Williams
Ana has been a great asset to the shipping team this 4th quarter. With her supporting role in the shipping department leadership, we have been able to accomplish our goals of meeting the client expectations and deadlines. She is part of the “I Want to be a Boss” program, and it has shown in her capabilities, this season. I am glad she is a part of the WIL team and glad that we have her in our corner. Thank you, Ana! Keep up the great work.
Tangie D., Shipping Clerk (April 2019)
WIT: 28624 Witherspoon Parkway
Tangie is one of our top pickers in the WIT building. She has excellent attendance, and is always willing to help out in different departments. Tangie is detailed and a quick learner. She was able to pick up on all the different pack processes for our 14 B2C clients in just a few days. She is eager to learn and has recently been promoted to Shipping Clerk. Thank you Tangie!
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‘Employee of the Month’ recognition is our way of offering extra appreciation to individuals in the AMS Fulfillment Family. Whatever role they play, our employees are vital to our success. Congratulations to this month’s honorees and Thank You!
Last July we posted a blog about what was going on in the AMS Learning Center as 28 young students were learning basic work ethics and Fulfillment Industry skillsets. It was a summer leadership and career readiness pilot program, organized by S.T.R.E.A.M. Global Innovations (SGI) in cooperation with Goodwill Industries and AMS Fulfillment.
In January the team that had put the program together; Ken Wiseman of AMS, Lisa Michelle of Goodwill So. Cal. and Nikia Richards of S.T.R.E.A.M. presented a workshop at the annual California Workforce Association (CWA) Conference, Youth@Work.
Their workshop was entitled “Match Making – Bringing Youth and Employers Together”. Nikia Richards presented the experience of S.T.R.E.A.M., where the focus was on listening to both employers and students, ascertaining the needs and then designing a solution.
Lisa Michelle presented details of the role of Santa Clarita America’s Job Center operated by Goodwill Southern California, and the responsibility for recruiting the youth and matching them with a program, and compensating them. About the presentation Ms. Michelle said, “AMS exemplifies to the community and other businesses the vital role of an employer. We were thrilled to showcase our best practice model at the CWA conference.”
At the conference Ken Wiseman spoke about the experience of AMS in hosting the students, and how inclusion and placement changes lives. He said, “I couldn’t believe the transformation of these youth from the time they started the program struggling to see direction in their lives to the graduation where I saw inspired, motivated and energized young men and women. AMS was proud to be a part of the S.T.R.E.A.M. Summer program.“
The CWA Youth@Work Conference, this year entitled “Architects of the Future”, was attended by young adults and organizations that provide education, training or other employment services to young adults. The entire conference featured 48 workshop sessions and over 100 presenters, and took place from January 14 through 16 at the Doubletree by Hilton in San Jose.
Thank you to Ken Wiseman and the team for a great program, and job well done.
Every month, and especially after our busiest month of the year, it’s such a pleasure for supervisors and employees to recognize a specific employee as having been outstanding. This month we are very pleased to recognize Ken R., Andy P., Erica B., Lidia P., Tervon N. and Devon N.
There are a number of AMS facilities, with over 300 employees, and we value every one. From the beginning of AMS to this day we enjoy a close environment that takes note of and cares about employees, and their job satisfaction.
The nominations and comments below demonstrate that the employees being recognized did an outstanding job during the month of December. We truly appreciate them.
Ken R., IT Technical Solutions Manager (July 2019)
HQ Office: 29010 Commerce Center Drive
Ken has joined AMS as an IT Project Manager. He immediately fit into the company culture so well, and is willing to help out in so many areas including helping through the craziness of 4th quarter. Ken’s personality is so professional, and he is kind to everyone.The CS team really likes working with him, and we are lucky to have found such a great person to be on the AMS IT Team.
Andy P., General Warehouse (November 2018)
HQ Warehouse: 29010 Commerce Center Drive
Andy played such an important role in helping with the busy 4th quarter with one of our larger clients. He embraced learning as much as he could during this high-pressure time and truly was a superstar. Andy has been recognized as an amazing hard worker and a very smart guy. We look forward to him keeping up the momentum in learning and growing with us. We are really lucky to have him on our AMS Team.
Erica B., Returns Clerk (October 2019)
WIL1: 28936 Ave Williams
Erica has been very hands-on, and always has a positive attitude. She is a fast learner, and such a big help to our department. She is extremely dependable. Erica is always willing to learn new material and she is great to have on our team.
Lidia P., General Warehouse (December 2018)
SCO3: 27801 Avenue Scott
Lidia is a great asset to the client’s team that she works on. She is always very helpful, and a great mentor to all new employees who join the team. She is a very hard worker, and does everything she can to make sure everything is in order. Lidia is very fast and knows what she is doing. She is an all-around great person to have on the team.
Tervon N.., General Warehouse • AND • Devon N., Receiving Clerk (Both August 2016)
WIT: 28624 Witherspoon Parkway
Tervon and Devon are twins… and both are always willing to help wherever needed. They always work hard, and are great assets to our team at WIT. We could not see one of them winning and not the other, as they are both very hard workers and very smart guys! So both of them are our nominees for December Employees of the Month.
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Our ‘Employee of the Month’ recognition is meant to convey extra appreciation to individuals in the AMS Fulfillment Family! Whatever role they play, our employees are the reason for our success. Congratulations to this month’s honorees and Thank You!
In the fulfillment industry we’re pretty familiar with Santa’s workshop – just ask the elves pulling products out of bins, or the ones assembling things, or how about the ones loading and unloading the trucks (aka sleighs). When the packages are delivered and the gifts are being enjoyed, we enjoy a feeling of success. We made it happen once again.
Since AMS Fulfillment is global, we’ve decided to look around the globe and see how the imaginary gift handler accomplishes delivery in various cultures. We know the date is not always the night of December 24th, and the name is not always Santa. It’s quite interesting what stories have been created in order to celebrate the holiday season!
In the UK, it’s Father Christmas, and he does arrive the night of the 24th, but in Holland it’s St. Nicholas or Sinterklass and he rides a white horse in on the night of December 5th. He has a companion named Black Peter who carries a black sack and a book where he recorded the behavior of children. If a child hasn’t been good… let’s just say Black Peter will handle it.
In addition to Christmas, children in Mexico have an extra delight as they could get some sweets from The Three Kings on January 6th. The children in Greece also receive gifts in January as Christmas is celebrated then. Their presents come on New Years Eve, brought by Saint Basil.
German children don’t have to wait until the 25th as St. Nicholas comes on the night of December 5th. Depending on the area of Germany, St. Nicholas might be accompanied by Krampus; a monster carrying a birch branch to deal with bad children, or an equally scary Black Peter (as in Holland), or a different scary man dressed in fur called Belsnickel in Northern Germany.
And there are even more stories! In Sweden the delivery is facilitated by Jultomten, flying through the air in a sleigh pulled by Thor’s goats. Austrian children are promised a visit from the Christ Child or from Christkindl, a beautiful girl-angel. Italian children wait for January 6th, when La Befana, the good witch, delivers Christmas presents. In Russia Grandfather Frost brings sweets on December 31st, accompanied by his granddaughter, the snow maiden.
How about down under where Christmas comes in the middle of summer? In Australia the children wait at the beach for Santa Claus, only his sleigh is pulled by a team of white kangaroos. Finally we’ll look at Iceland, where children receive gifts for 13 days in a row. Here there are 13 Yule Lads who come down from the mountains and leave a gift in the shoes of the children who have been good. The bad ones might get rotting potatoes.
Disclaimer: AMS does not warehouse, assemble or ship the rotting potatoes, the lumps of coal, the rocks or the birch branches. Those items must be handled by some other fulfillment company!!!
We hope you’re enjoying a wonderful holiday season. Whatever your celebration – Christmas, Hanukkah, Kwanzaa, Boxing Day, Solstice – we wish you a happy celebration with family and friends. May it reward and refresh you for the new year.
It’s enjoyable to review what has happened at AMS during the past year, as the story is inspiring. We have seen some of our past efforts come to fruit, and we have also seen some things entirely new, setting the stage for 2020 and beyond.
For example, in 2016 the groundbreaking Nationally Certified Logistics Apprentice Program was announced. In 2017 the program began. In 2018 Logistics Apprentices began their first classroom training. And now, in October 2019, we celebrated the graduation of 17 Logistics Apprentices. You can read about it HERE.
Another effort that has come to fruit is the re-entry of justice-involved individuals into the workforce. In 2018 AMS’ Ken Wiseman was asked to be an advisor for the CA Legislature’s Prison-to-Employment Initiative (P2E Initiative). Ken, along with other business leaders, took part in the Employer Engagement Workgroup. Now, in 2019, AMS has officially entered into a partnership under the P2E Initiative. We’re proud to be a part of the solution by offering employment to justice-involved individuals. You can read more about it HERE and HERE.
As a B-Corporation and Social Enterprise, AMS has focused on workforce development. (B stands for ‘Benefit’.) B-Corps work to benefit the world, and that certainly includes the employees. The benefit to employees and the community includes the Logistics Apprenticeship, Pre-Apprenticeship programs, ongoing safety training, educational classes on campus, the Prison to Employment Initiative, hiring individuals with disabilities and more. In addition to efforts already in place, in 2019 AMS offered Job Skills classes and hosted the S.T.R.E.A.M. student internships. Read more about it HERE and HERE.
Now for the big news! In 2019 we saw AMS change ownership and bring in an Executive Team to guide future growth. The announcement came as follows:
Valencia, CA May 8, 2019 – AMS Fulfillment, a recognized leader in 3rd party fulfillment, announced today that it has sold majority stake of the business to Fort Point Capital of Boston, a private equity firm that specializes in the logistics industry. Fort Point Capital will step in as a resource to help AMS expand in the rapidly growing and competitive sector of e-commerce, warehousing and fulfillment.
AMS’ new Executive Team is as follows: Fort Point Capital’s Principal, Christina Pai, serving as Chairperson of the Board; Jay Catlin as CEO; Betty-Lou Wiseman as President; Daniel Butera as COO; Sriram Kailasam as CFO; Jason Irwin as CIO and Ken Wiseman serving as Chief Workforce Development Officer. This group of highly experienced individuals will guide AMS’ new stage of growth.
The intention of Fort Point Capital in taking on majority ownership is to help fund and manage the growth of AMS. Logistics is one of the top global growth industries and we are excited to step up and meet the needs and opportunities of the time. Fort Point Capital is committed to continuing AMS’ achievement of B-Corp Certification and the company’s outstanding work as a Social Enterprise. You can read more HERE.
Congratulations to AMS for a great year in 2019. We’re looking forward to a fantastic 2020!!!
The months of November and December are especially busy for our company. Peak holiday season asks a lot of AMS management and employees, and we’re grateful for the extra effort that everyone in our corporate family puts forth to make the season successful. This month as the employees in our various facilities made their nominations, they had a hard job nominating just one employee, as many did exemplary work.
With appreciation for all, five individuals were selected who went above and beyond. It’s our pleasure to recognize the following Employees of the Month: Beatriz R., Kayla S., Sylvia M., Mariela G. and Christopher B.
Beatriz R., Business Development Representative (June 2014)
HQ Admin: 29010 Commerce Center Drive
Beatriz has recently moved into an Administrative Sales position and is doing an exceptional job. Her organizational skills really shine in this role, (take a look at the white board in her cubby). Her follow-up managing the pipeline is consistent. We are extremely proud of her as she came from the Client Service Department, and continues to better herself by working hard to get her degree. She certainly deserves Employee of the Month.
Kayla S., General Warehouse II (February 2019)
HQ Warehouse: 29010 Commerce Center Drive
Kayla always has a great attitude. She is ready and willing to learn new things, and always does things well. She is friendly and shows respect to everyone. Kayla deserves to be Employee of the Month.
Sylvia M., Returns Lead (December 2015)
WIT: 28624 Witherspoon Parkway
Sylvia has made huge improvements in the last six months and was recently promoted to Returns Lead. She is very hands-on and is always willing to assist in other departments when help is needed. Sylvia has great communication with her returns team, as well as management and client services. She is a pleasure to work next to and I look forward to building her confidence and skill level so that she can take on more responsibilities.
Mariela G., Lead / Shipping (January 2017)
WIL1: 28936 Ave Williams
Mariela is an excellent worker. She has 100% commitment to do the job correctly and in an efficient way the first time, no matter what is asked of her. Mariela can easily change from one task to another. She always has a positive attitude that spreads across to other AMS co-workers. She is always available to work, whatever hours are asked of her, and she also asks if she can help do other work. We appreciate Mariela’s commitment to her work.
Christopher B., General Warehouse II (April 2019)
SCO3: 27801 Avenue Scott
Chris is a good worker, a team player, and he gets things done efficiently. He goes above and beyond to make sure all orders are getting completed. He is friendly to work with, hard-working, and a kind person. He always has a smile on his face and is friendly with all of his coworkers. He is also always available to work, which we appreciate. He deserves the recognition.
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So it is with the spirit of family and the spirit of the holidays we offer a sincere Thank You! No matter which department or which task our outstanding employees perform in, we know they are the reason that AMS succeeds so well and continues to grow.
When holiday time comes around, a volunteer group of AMS employees gets busy. For nine years they have been donating and organizing donations so that families in need can enjoy a beautiful Thanksgiving dinner. The volunteers put up flyers and send out emails companywide, giving their co-workers an opportunity to join in.
This year AMS employees reached in their pockets and donated Thanksgiving dinner to 40 families! Vallarta Supermarket (Valencia – Lyons) participated as well by offering the volunteers a 5% discount on the dinners.
The families are participants in the Santa Clarita Youth Activities League (YAL) ‘Adopt a Family’ program. Officer Bryan Rooney of the Santa Clarita Valley Sheriff’s Department runs the program and selects the families for both Thanksgiving and Christmas.
Deputy Rooney and AMS volunteers met with the families at the Val Verde Community Regional Park on the Wednesday before Thanksgiving and enjoyed very much the opportunity to give. AMS employees who delivered the dinners to the families were: Betty Lou Wiseman, Ken Wiseman, Erica M., Olivia M., Roxana M., Briana A. and Gene S.
Betty-Lou is in charge of the program and Erica is the ‘engine’ that drives this activity. Regarding the opportunity of giving, Erica said, “This time of the year always brings me a warm and happy feeling. It is such a great honor to participate every year in bringing families together and see them smile.”
We appreciate the ‘Adopt a Family’ program and Officer Rooney, this wonderful group of AMS employees, and all who donated to make Thanksgiving bountiful for the receiving families. Thank You!!
Here we are, heading toward the end of 2019, and we’re happy to report that AMS has experienced ZERO lost time injuries this year. Comparing our safety record with others in the fulfillment business, AMS COO, Daniel Butera, said, “I guess having our priorities balanced is important!”
One company that has been making the news regarding injuries this year is Amazon. They reported 9.6 serious injuries per 100 full-time workers in 2018, compared with an industry average that year of 4. We recently noted that employees of the company in the UK did a Black Friday / Cyber Monday boycott with employee injuries as the reason. Amazon is facing its challenges, and we wish them success as they seek to improve conditions for their employees.
Looking into workplace injuries, it’s worth asking… what did Daniel mean by “having our priorities balanced”? AMS will tell you that employees ARE our priority. We balance the wellbeing of our employees with the service to our clients and the profits of the company, and this balance has worked very well for AMS.
Safety training at AMS is ongoing, and is taken very seriously. The AMS OSHA Safety Program began in the fourth quarter of 2016. In addition to an ongoing training schedule for our safety teams, we hold competitions among the warehouses to see who can spot staged safety issues. The winning warehouse gets to hold the trophy until the next competition.
Creating a safe environment, and having people assigned to watch over the environment on a continuous basis, is but one of the things AMS does. In addition, we watch over the employees for burnout issues, especially during Peak Season.
In a recent interview, Daniel said, “Fatigue and burnout are a very real part of our industry, and we take several steps to ensure we are taking care of each other properly.”
Daniel went on to talk about making sure tables and carts are the right height, limiting the time a person is standing, keeping the building temperature comfortable and the lighting good, giving employees staggered shifts and rotating days off so that no one is asked to work 12 hour days or 7 days in a row.
AMS has proven that having an excellent safety record goes right along with making employee wellbeing a priority.
Ken Wiseman, AMS’ Chief Workforce Officer, and one of our founding partners, has for years personally conducted the safety classes and overseen safety training. Regarding our record, Ken said, “Our AMS B Corp status and supporting mission statement indicate that we consider our employees’ wellbeing as part of our success criteria. For AMS, profit and growth are not goals unto themselves, but merely outcomes of uncompromised attention to our customer, our organization, our community, and ourselves. This said, our concern for our employees starts with their safety.”
A few days ago our home community of Santa Clarita suffered a tragedy; there was a shooting at our local Saugus High School. The awful fear that this invoked in the children, and families and friends of the children, will never be forgotten. While news reports focused on the details, at AMS we dealt with the reality of our own families being at risk.
Our deepest sympathies go out to the families of children who lost their lives, and our prayers for recovery go to those who were injured and traumatized. It goes without saying that we never imagined such a thing occurring in this peaceful, thriving community of Santa Clarita. Like millions of others, we ask why.
What caused this destruction of life and trust? Why did a 16-year-old come to this moment and make this decision? Did our culture encourage this? When we know the cause, then how can we improve the culture?
School and workplace violence have been on the rise and a great deal of conversation is taking place on how to deal with this reality. We understand that statistically, among places of business, a fulfillment company is at low risk. Nonetheless, there is no logic in some of the violence we are seeing, making even low risk environments vulnerable.
At AMS the safety of our employees is a very high priority. We take safety training seriously, with continuous training and education. Still, today we realize that we are now called upon to do even more to see to the safety of everyone on our campus.
AMS is attempting to build a workplace culture where every human being in our employ is respected, valued as a contributor, and cared for as a person. That has been our goal from the beginning, today exemplified in our B-Corp commitment. We believe that business can and should create a positive culture, in support of the community; especially those individuals who are struggling for one reason or another.
AMS extends its sympathies to the Saugus High School staff and students, the City of Santa Clarita, and all who have been impacted by this tragic event.
Jay Catlin, AMS CEO, speaking on behalf of AMS:
“This heartbreaking event took place in close proximity to our home base at AMS. It serves as a sad reality that any one of us may be impacted by this type of violence on any given day. While we grieve for those who have suffered, we must go forward with hope for a brighter future, kindness and respect for those around us and consideration for what meaningful change should look like in our communities.”
Retailers certainly know we’ve entered ‘Peak Season’ as they stockpile TVs for Black Friday. According to some articles, peak begins in August with preparation for Halloween. That date does appear to be true from a consumer standpoint.
Experts predict growth, which simply means that more commerce will take place this year than last, and with more commerce there will be more fulfillment. Fulfillment companies are like the engines that make it all happen. How do the fulfillment experts prepare for a season of high volume and how do they handle times when the pressure is really ON?
Daniel Butera, Chief Operations Officer at AMS Fulfillment, has agreed to help us understand how fulfillment companies operate during peak season.
Thank you, Daniel, for accepting the interview. I’m sure AMS is up there with the top performers, and as a top performing company you may have some recommendations, based on years of experience. For example, when do you begin preparing for peak season and how do you prepare?
Thank you for taking the time to speak with me, as it is my pleasure. It may seem odd to many outside of the industry but preparations for the following year, technically, begin as we are going through peak season. Having a plan of action that is built on past experience, client forecasts, and data analysis, we move into peak season with our road map in hand and confidence. We are monitoring our productivity and throughput rates in most areas on an hourly basis to ensure we are hitting our projected rates, while noting where we are falling below expectations. What are the bottlenecks? Where are our team members experiencing fatigue? What quick solutions did we put in place to get us through, and can we implement a technological fix to correct the issue moving forward? These discussions continue through Q1 as the preparations become more formal with a kickoff post-holiday brainstorming session. These kickoff sessions are always a lot of fun, as team members are given the floor to discuss what worked, what didn’t, and how they think it can be better.
The greatest innovations come from the end user, so we take what they say very seriously. The next planning session revolves around client directed projected growth, and what their foreseeable needs will be. Order volume, units per order, line items per order, and overall sku growth are considered primary review factors in relation to both labor and technology, while projected stock levels and turns provide insight into the footprint. Many clients are data and forecast driven, and in these cases the process is straight forward, but there are also many clients that do not have that ability. This is when we partner with them, and present both historical analytics in relation to their shipping data, as well as industry insight into trends to build the model.
These conversations are happening throughout the year, and through all seasons. We adjust as the client’s business contracts and expands, and monitor these changes against historical data to ensure we are on track. Then we look down at our phones and realize that it is September 1st, and the ride begins all over again with our plan in hand!
AMS fulfills for large chain stores and retail businesses as well as for e-commerce, shipping directly to the customer. Can you talk about how you approach the broad spectrum of clients you serve?
Absolutely. In the past the peaks and valleys of business to business and e-commerce were quite different, so we had greater ability to shift both staff and resources to and from each business segment as needed. Given that all of the activity still fell within late Q2, and all through Q4, there was a definitive split. We became accustomed to shipping both large retail chains and boutiques on a seasonal calendar, with the final big push happening toward early to mid-September. We could then shift a good portion of those same resources over to e-commerce as we got closer to Black Friday. Those were the good old days! Over the last two to three years we have seen these worlds completely overlap.
Retailers are now requesting later and later delivery dates, so that they can keep their own stock levels as low as possible while they trend sales for greater periods of time heading into the holiday season. This trend has pushed launches that would occur in early to mid-September into October and early November, with multiple weekly replenishment orders dropping against popular styles well into December in certain cases. This has pushed us to technological and data driven solutions to reduce/eliminate throughput constraints. Where in the past we would have added additional labor to get more out the door at the same time, we no longer have that option in most cases. The volume of business has gotten too big to manage it in that way, and driving people to the point of exhaustion is fundamentally against our core values.
At AMS we are implementing technological solutions that allow us to ship large spiky volume with minimal staffing shifts. The solution is not to just work faster, the solution is to work smarter. Employ systems that will allow a team member to pick a multitude of items, orders, and lines at the same time, while working at a pace that does not burn them out. Employ processes and innovation to packing and pack stations that allow a team member to easily shift between business segments if need be. Monitor order and sku velocity to ensure your shifts line up with peak periods of the day and week. We have to be nimble and smart. Eighty five percent of our order volume is driven by e-commerce, while eighty five percent of unit volume is driven by the business to business segment. What is more important? The answer is both. Both are equally important to AMS and our clients.
So I gave you a very long answer to a simple question. I guess I could have just said; tech. We invest in tech.
We’re sure the pressures of the season require exceptional performance from your employees. Could you talk about the AMS employees and how they handle the load?
We are so fortunate at AMS. Many of our team members have been with us since the company was founded. They are family, and they are treated as such.
Fatigue and burnout are a very real part of our industry, and we take several steps to ensure we are taking care of each other properly. First I would say that this is not just a holiday or Q4 issue. As a fulfillment partner for multiple brands across multiple business segments the business spikes, unexpectedly in many cases, throughout the year. Planning for last minute spikes is key, and making sure our team members are safe and alert is part of that planning.
Are our tables and carts at the right height so team members do not have to hunch or bend more than necessary? Can the cart be lighter? Can we limit the amount of time that someone is standing? Are they using an anti-fatigue floor mats? Is it too hot or cold in the building? Do we have proper lighting so they are not straining their eyes? All of these issues are addressed on a daily basis, and ensure that associates are safe and alert.
As managers we are accountable to our team members. Is it possible to be productive when you have worked 12 hours, or more, a day for 7 days straight? The answer is No. We can pretend that we are all superheroes, and that “We have the best people, and they do what ever it takes to get it done for AMS, or they die trying,” but the truth is that we do have the best people. They will do what ever it takes to get it done for AMS and our clients, and they should not have to put themselves in harms way to accomplish that goal.
We owe them staggered and alternate shifts, so they can be with their families during the holidays. We owe them days off during the week, so that they can rest and be productive. At AMS, we employ both stagger shifts, and rotating days off to ensure everyone is well rested, motivated, and absolutely safe. We also conduct weekly safety tours, and meetings with randomly selected team members. During these meetings, Ken Wiseman, AMS’ Chief Workforce Officer, and one of our founding partners, personally conducts the class instructing team members on what they should look for and how they go about reporting both issues and ideas to their managers. It is a core principle that we are all accountable to each other for safety.
Our team members take this very seriously and if we, as managers lose sight of these core values, we are quickly reminded. I love that! We are all held to the same level of responsibility regardless of title.
Thank you Daniel for an excellent and informative interview!
Thank you so much for your time, and allowing me to run on about what we do and how we do it. I am very fortunate in that I love what I do. A big part of that love is wrapped into “Peak Season”. The challenge and test of how to get it done, better, faster, and safer, is a test that we welcome every year. How do we employ technology to solve an issue that challenged us throughout the year? Can that same issue solve a bottleneck we see coming down the road, and is it scalable across multiple facilities/clients? These are the questions that motivate us to stay ahead of the curve, and not just during peak season.
