Fleet Management & Forklift Safety Blog

How to Reduce Labor Costs and Keep Warehouse Productivity

Posted by Dick Sorenson on Feb 27, 2018 4:00:00 AM

Does the search for continuous improvement in your facility include taking warehouse management data and comparing it to fluctuations in labor management? It should. CutCost-1.png

Naturally, there is a direct correlation between your workers and what happens on the warehouse floor. This is where inefficient use of your operators’ time can be identified and modified to reduce labor costs. It is where you can find the root cause of problems, accidents and inefficiencies that should not be happening.

Proper measurement of your tools and people, combined with the use of effective technology, are key to cutting labor costs while supporting warehouse productivity.

Why merge warehouse and labor management together?

WMS and labor management data can be easily merged together through a telematics platform to clearly identify where there is room for improvement and how to achieve it.

Why is it helpful for information to be combined? One of the largest expenses in a typical warehouse is labor costs, accounting for as much as 50% of the facility’s total operating expenses. But, merging labor data with your facility’s warehouse management system can reduce labor expenses by up to 30 percent. The combination highlights what is off target with workers and how it directly impacts productivity on the warehouse floor.

Now, you can track workers’ schedules and clocked-in time through spreadsheets, but that is a manual task vulnerable to human error. It lacks a detailed, accurate, real-time view of tasks happening in the warehouse or a method to easily identify hidden inefficiencies.

How to merge two systems to work together seamlessly

System integration (SI) is no longer a pain point to overcome. Telematics platforms complement and increase the capabilities of a labor and warehouse management system, allowing the two to work as one.

For example:

  • Integration with ERP or LMS system assists with safe traffic management in the warehouse, determines product location, and determines the safest and most efficient forklift/operator to move the product.
  • Integration with ERP systems can provide information for an employee’s personnel file. It The importance of written proof or a paper trail cannot be stressed enough when it comes to enforcing safety systems.
  • Telematic data integrates with back-office or ERP systems to improve workflows and operational analysis in departments including accounting, customer service, operations, and human resources

A telematics platform can facilitate automated records of each driver’s productivity and work patterns and relate this data to your fleet’s overall performance each day. An optional job-tracking feature allows operators to record the time they started and completed a job. So, job-tracking reports determine operational efficiency and trends.

Identifying areas where workflow or personnel changes would improve productivity and reduce labor costs can be tricky and time consuming. Telematics can seamlessly merge warehouse and labor management data, providing insight into the productivity of all operators compared by shift, site, and region.

Topics: Software integration, loss avoidance, proactive warehouse management, connected warehouse solutions, cost reduction, operator report card

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