18 percent of shippers use a formal labor management system. When companies look to improve productivity and labor costs they use the following strategies: lean manufacturing strategies, aerospace industry quality management system, activity0based management, and flexible workforces with variable hours. Only 11 percent of companies are “extremely satisfied” with their labor management system application and 33 percent of companies are either using or planning to implement a cloud-based labor management solution. Some uses for labor management systems include time recording/time clocks, time and attendance software, scheduling, and labor activities tracking.
Companies that are not considering a labor management system cite the following reason why not; No need at the present time, manual procedures fit current needs, other IT tasks are considered a priority, and costs. 83 percent of companies developed and implemented engineered labor standards and preferred methods for performing a task. Labor management system usage provides significant benefits. Such as ability to objectively measure associate performance, reduction in labor costs, visibility over performance throughout the day and the capacity to monitor progress against a production plan. When identifying the benefits of using a 3PL to manage labor within a DC, companies look at reduced direct and indirect labor costs, continuous improvements in productivity and quality, and reduced human and equipment assets. 71 percent of companies implemented pay-for-performance in their operations. Some companies are reluctant to outsource labor management to third parties because they have a fear of losing control, they feel they can do it cheaper themselves, and concerns about a possible lack of knowledge about their specific products or work environment.
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