Warehouse Labor Management
Managing labor costs is the biggest key to controlling overall warehouse operations expenses. But measuring productivity can be difficult and often misleading.
That’s why GENCO has invested in labor management systems (LMS) to take the subjectivity and guesswork out of this critical measurement. Labor management systems can drive labor cost reductions of up to 20%.
GENCO uses several labor management systems and employs dedicated staff focused on proactively managing your biggest expense.
Benefits of Warehouse Labor Management Systems
- Accurately measure productivity
- Compare performance across functional areas
- Ensure that labor performs to its potential
- Reward those who exceed performance standards
- Identify bottlenecks and obstacles
- Monitor all productive time
- Monitor all nonproductive time
- Monitor performance levels in real time
How Warehouse Labor Management Systems Work
GENCO combines warehouse labor management systems with engineered labor standards to calculate the expected time to perform a specific task. We use computer-aided time/motion studies to develop discrete labor standards. Through multiple regression analysis and work sampling, along with management-based observations and computer-aided data collection, reasonable time expectancies are developed and applied.
It is vital to link a warehouse management system (WMS) with an LMS and the engineered labor standards. There might be large amounts of data that a WMS does not capture. Labor management systems track elements not normally accounted for in a WMS.
Pilot Project Using LMS Yields Double-Digit Productivity Gains
GENCO installed an LMS at a major manufacturer’s distribution center with the objectives of increasing productivity and decreasing nonproductive activities. Within eight months, the customer had increased productivity more than 10% and decreased nonproductive hours by 7%. When engineered labor standards were added eight months later, an additional 10% productivity was realized for a total productivity gain of 20.1%.
Maximize the Value of Warehouse Labor Management Now
Email email@example.com or call 1-800-378-9671 to reach a labor management expert.