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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. |
Supply Chain Information Technology Perspectives Blog: Fill in the information gap between supply chain and technology issues with this newly launched blog from six experts on the Supply Chain Information Technology team at Tompkins Associates. See recent blog posts here.
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