Labor Management
What is a Labor Management System?
A labor management system (LMS) is software that helps warehouses become more productive and efficient.
It tracks, measures and optimizes warehouse workforce performance by comparing actual productivity against engineered labor standards–standards for how long a task should take, derived from engineering studies or historical averages.
Key Functions of a Warehouse Labor Management System
An LMS for a warehouse monitors tasks, calculates efficiency rates and provides real-time feedback to operatives and supervisors. It:
Tracks performance: A labor management system captures every task with timestamps, measuring how long operatives take to complete activities like receiving, putaway, picking, packing and replenishment.
Reports productivity: A labor management system displays individual and team performance metrics, showing efficiency percentages, units processed per hour and goal attainment.
Offers incentives: A labor management system drives motivation through gamification elements like badges and leaderboards, encouraging operatives to become more productive
Does a Labor Management System Integrate With a Warehouse Management System?
Yes, using both platforms makes for more efficient warehouse workforce management. A warehouse management system (WMS) feeds transaction data to an LMS in real time, making it easier for the LMS to calculate task duration.
A WMS can use the data the LMS provides to optimize work allocation and assign tasks to the right operatives. For example, high-performing operatives receive more complex tasks, while newer, less-experienced operatives get simpler assignments.
A WMS also adjusts labor plans based on volume forecasts, scheduling adequate operatives for peak periods and reducing headcount during slower times.