Labor and performance issues can occur at any warehouse or distribution center in the world. To help workers and managers address these issues in a meaningful way, a data driven approach is needed. More than that, the approach needs to focus on relevant metrics and markers. Finally, those metrics need to be utilized by a labor management system which turns them into actions. These 3 vital components can work in tandem to regulate a workhouse into a paragon of efficiency. However, that’s easier said than done.
Here we review the vital components of labor planning tools to improve efficiency at your warehouse or DC.
1. Business Intelligence.
Business Intelligence and Data Analytics are two tools which can work together to deliver the ultimate efficiency recipe. For a distribution center, warehouse, or any business at all, these tools are essential for efficiency.
In essence, you can use 4 types of data which can offer unique insights. These are descriptive, diagnostic, predictive and prescriptive analytics. Descriptive analytics answer “WHAT” happened. Diagnostic analytics answer the “WHY”. Predictive analytics, as the name suggests, focus on what will happen and offer projections. Finally, prescriptive analytics offer suggestions about what could be done.
The Value of Data Analytics and BI Tools.
Data analytics and BI tools can work together to create a special sauce which helps distribution centers and warehouses improve. With BI tools, you can turn data analytics into insights. And with that, you can turn those insights into action.
With ProTrack it’s incredibly efficient and easy to adopt a data driven approach to improve warehouse operations. You can both cut waste and reduce costs to create a more effective and engaged taskforce.
Since labor shortages are driving up wages, it’s more important than ever to ensure that hourly performance standards are met. That way, you’ll be able to get the most out of your workforce. Also, data analytics can help you improve productivity using tracking methods. Productivity can now be tracked using a single button so you can isolate groups or members that are slow. That way, you can root out inefficiencies and help your workers so that they can improve productivity.
2. Capacity Planning.
Capacity planning is an essential part of labor and production management since it helps improve labor performance and return on investment. Nearly 50-60% of all distribution center costs stem from labor. Due to the labor shortages prevalent in nearly every industry, there is a crisis to address.
Job openings in the labor force totaled 11 million in December of 2021, a number 4.6 million above the total unemployment level. This is a gargantuan crisis which needs to be addressed. With capacity planning that crisis becomes more manageable.
On top of the labor shortage, the E-commerce and retail industry is growing at a massive rate. McKinsey reported that the US E-Commerce growth rate was 3.3 times faster than the 2015-19 average. This means the need for more workers, and more important, a more managed and efficient labor force.
With capacity planning through a labor management system, it’s possible to maximize labor performance. How? Well, a labor management system shows you the possibilities of your labor force working together to maximize collective efficiency.
3. A Tier 1 Labor Management System with integrated BI tools.
To bring both data analytics and capacity planning together requires a labor management system like ProTrack BI. With this tool, you can gain visibility into labor performance metrics including performance, cost, and time usage. You can also gain insights into intra-day planning, performance and execution monitoring.
With effective labor capacity planning managed through ProTrack BI, you can save 10-20% on labor costs. In simple terms, you can save $750,000 every year if you have a labor force of 100 people. Those massive savings can turn into profits or extra capital for expansion and investments into future endeavors. These are the kinds of savings you can expect with proper, data-driven labor management.
TZA Provides Optimal Labor Management with ProTrack
ProTrack from TZA gives you the labor planning tools you need to improve overall performance by 10-30%. You can improve performances across the board from assembly to manufacturing to kitting. Our research indicates that diving into the data can help warehouses and distribution centers eliminate 108 hours of delays each month.
What’s more, our ProTrack BI system can utilize performance visibility data for accurate labor planning and progress evaluation. What this means is, you can objectively know how much better you’re doing in contrast to last month or last week or even yesterday.
There’s no time to lose. Every second counts. And with ProTrack, it will count.
Call TZA and speak to our Labor Management team to discuss your challenges. (800) 229-3450.