As we welcome the fresh start of a new year, it’s a great time to evaluate your current labor management strategies for potential improvements. To get you started, here are some positive labor trends we’re watching at TZA along with actionable tips to take the best advantage of them.
According to a McKinsey survey of supply chain leaders, “67% percent of respondents have implemented [Business Intelligence] dashboards for end-to-end supply chain visibility.” Labor Management Software will provide you with key insights needed to identify operational bottlenecks, resulting in increased productivity, labor utilization, throughput and quality.
Tip: Consider implementing Business Intelligence reporting, including data feeds from your Warehouse Management System, Time and Attendance and Warehouse Control System. Today’s Labor Management Systems (LMS) include Business Intelligence reporting and can offer additional insights beyond just host data.
Improving employee engagement will significantly lower employee turnover, resulting in improved performance and lower labor cost. Gamification can break up repetitive tasks and motivate employees to higher levels of performance.
Tip: Successfully implementing gamification requires a foundation of accurate performance standards, such as engineered labor standards, to accurately recognize and reward employees.
Too much overtime can have an adverse impact on your ability to keep turnover in check. Turnover, as we know, will have a significant impact on your labor cost per unit. That’s why large companies like UPS are starting to cut back on overtime, particularly in peak season, to achieve the level of work environment/culture attractive to their employees. As the shortage of labor continues to plague our supply chain, many are starting to offer shorter and flexible work schedules.
Tip: Take the first bite out of unnecessary overtime with better manpower planning and real-time visibility of work progress.
Adopting labor management technology can help assure your team is operating at optimal performance levels, making it a top trending solution in supply chain. Labor Management Software provides your floor managers with the tools they need to properly labor plan, improve overall performance and increase employee engagement.
Tip: Implementing Labor Management Software will reduce labor cost by 8 to 15 percent.
Need help navigating any of the above topics in 2023? Book a complimentary audit and see how TZA’s ProTrack Labor Management System can make a difference in your labor management.
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