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Labor generally represents the largest cost component of a distribution center’s operating budget. Yet relatively few distribution operations try to optimize this critical resource through a Labor Management System (LMS).
Distribution centers that lack a comprehensive labor management system typically operate between 60 to 70 percent of their potential productivity.
Implementing a comprehensive labor management program that includes engineered work standards and an LMS can allow a distribution facility to operate at or near 100 percent productivity.
An LMS can help a distribution operation improve labor productivity by:
- Reporting direct and indirect labor activity compared to historical data
- Reporting labor activity against engineered labor standards
- Supporting incentive based pay programs
- Providing key input in the labor planning process.
Tompkins Associates provides a complete set of services to help your organization select and implement the right labor management system solution for your operation. Tompkins services include:
- Requirements definition and business case development
- Software vendor selection
- Engineered labor standards development
- Configuration and setup support
- Testing and training support
- Project management assistance
Tompkins' benchmarks and improvements in labor productivity can equal huge results to your company’s bottom line. |
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