Final answer:
The first step in addressing a sharp increase in back orders should be performing a process analysis to identify inefficiencies and bottlenecks. Subsequent steps might involve investing in human capital, technology, and labor rights once the root cause is determined.
Step-by-step explanation:
The first step in solving an organization's problems with a sharp increase in back orders of shipments should be performing a process analysis. This is because it is crucial to understand the underlying issues causing the increase in back orders before developing or implementing solutions. A process analysis will help identify inefficiencies, bottlenecks, or other issues within the supply chain that need to be addressed. Once these are understood, the organization can then look into implementing other strategies, such as developing a soft skills training program, instituting a job rotation program, or recruiting additional skilled employees, if necessary. Through this informed approach, the organization can strategically invest in human capital and technological advancements, respecting labor rights, to mitigate and prevent future back order problems.