Cost-to-Serve: The Missing Link Between Labor Data and Warehouse Profitability
Labor drives 50-70% of warehousing costs. Rising order variability makes that labor harder to plan and cost-to-serve harder to pin down. This new research from Supply Chain Insights, conducted in partnership with Easy Metrics, surveyed supply chain leaders to find out how companies actually measure, trust, and act on labor data.
Volatility is now the rule, not the exception. Labor shortages, unpredictable order volumes, and supply chain disruptions are forcing operations leaders to make high-stakes decisions with limited visibility. Published in collaboration with Logistics Management, the Operational Agility Benchmark Report reveals how industry leaders adapt faster, make smarter labor and process decisions, and turn disruption into sustained performance gains.
If you had a hunch that you have some employees that are checked out, and disengaged from their work, you’re probably right. 70% of employees are not engaged. This causes many problems that spill into areas of safety, productivity, quality, absenteeism, and more. In a distribution environment, employee engagement is critical, and more importantly, achievable with the right plan.
Labor Management Systems are designed and marketed toward increasing productivity in the workplace, and therefore reducing costs. Unfortunately, these systems only give you productivity data on direct processes–leaving other cost and time metrics invisible and unutilized. If the goal is to reduce overall costs, then looking purely at productivity metrics isn’t enough. This is why many companies aren’t seeing the cost savings they were expecting with an LMS alone.
Recent years have brought dramatic shifts in distribution demands. Productivity needs to increase to keep up, but labor management Systems require change management. Peak season is the worst time to take on a labor management project. But many companies are rushing straight into labor management solutions and making costly mistakes.
In this webinar, learn how to optimize your network’s performance without the hassles of change management. Discover how to analyze cost to serve to find waste, create cross-site benchmarks, and drive corrective action.
Leverage labor management data to drive process health and efficiency, and root out the causes of inefficient processes. For hundreds of facilities, Easy Metrics provides analytics for a wide spectrum of product types and workflows. Traditionally, most companies rely upon industrial engineers and consultants to help identify process improvement opportunities. This can be effective, but […]
