In any warehouse setting, the majority of cost is the labor force required to run the facility. In an average distribution center (DC) about two-thirds of the annual budget is paid to employees. Labor management can reduce costs from 10-30 percent when deployed with detailed Engineered Labor Standards (ELS). However, for ELS to be built, processes need to be consistent and predictable. If the process for an area is not defined or there are many different approaches to how the work is completed, then a Labor Management System (LMS) will not be very effective. A Lean initiative may be necessary to make this area ready for an LMS.
In this white paper, you will learn how: