Do You Really Need A Labor Management System?

Most Labor Management Systems (LMS) are geared towards monitoring and maintaining the productivity of an individual or named FTE in the warehouse. Typically, these LMS solutions are complex in design, and require extensive engineering services in order to get standards built into the solution. These two factors are what drive up the cost exponentially and tend to discount the overall ROI of a solution.

What factors come into play when considering a full LMS?

Business Size and Complexity

  • Large Enterprises typically benefit the most from an LMS due to the large workforce and complexity in managing various labor functions.
  • Small to Medium-Sized Businesses (SMBs) may need an LMS if they experience rapid growth, have complex labor needs, or aim to optimize labor costs.
  • Unionized Operations may benefit if they need to either incent or coach employees based on performance against a standard.

Labor Cost Management

  • If labor costs are a significant portion of your operational expenses, an LMS can help optimize scheduling labor, reduce overtime, and manage labor costs more effectively.

Compliance and Reporting

  • An LMS helps ensure compliance with labor laws and regulations, reducing the risk of fines and legal issues.
  • It also provides robust reporting tools for analyzing labor performance and making informed decisions.

Productivity and Efficiency

  • An LMS is used to calibrate performance against a standard to maintain a level of productivity by the individual, which in turn can be applied to the aggregate performance of the operation. Under-utilized time or inefficiencies are identified on an assignment-by-assignment basis with the LMS.

Automated Scheduling

  • Reduces manual scheduling of labor errors and ensures optimal shift coverage.

Performance Analytics

  • Provides insights into labor productivity and helps identify areas for improvement.

Compliance Management

  • Ensures adherence to labor laws and regulations.

Cost Control

  • Helps manage labor costs by optimizing schedules and reducing unnecessary overtime.

Scalability

  • Grows with your business, supporting more complex labor needs as the company expands.

The biggest hesitation most warehouses have when looking at a full LMS is the EXPENSE.

Are there any viable alternatives to consider? There is now.

Warehouse Kommand is a synergistic labor cost and productivity planning solution that comes complete with an extensive database of engineered averaged elements which are used to calibrate performance of over 30 touch points in the operation. It’s a SaaS model solution which requires little to no start up resources and typically can accomplish savings within 3-7% of labor spend with the first application of the solution.

Unlike full LMS solutions, Warehouse Kommand can model not only future labor requirements, but can also model future changes to the warehouse such as new design or the addition of automation, where a full LMS would have to have new standards created. And the best part is Warehouse Kommand is available for $50 per month, a fraction of the price of any LMS solution, and can be used to support virtually any operation to quickly identify gaps in performance around the world.

Conclusion

Deciding whether you need a full Labor Management System depends on the specific needs of your business. For large businesses or those with complex labor management requirements, an LMS can provide significant benefits. For smaller businesses or those with simpler needs, more specialized tools such as Warehouse Kommand can deliver benefits as noted at a fraction of the price with minimal resources needed. Carefully evaluating your current and future labor management needs, along with looking at new innovative tools like Warehouse Kommand will help you make the right decision when evaluating labor planning for your warehouse.

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