How to Increase the Effectiveness of Warehouse Labor Management

Two members of staff working in a warehouse

In supply chain management, labor management is a complicated subject. Metrics for warehouse labor management efficiency show how well your employees carry out their duties. Are your employees successfully recouping their expenditures, in other words? According to Logistics Management, 50–70% of the average warehouse budget is spent on labor.

As a result, supply chain directors must comprehend the difficulties brought on by declining labor productivity, the advantages of better labor management, and a few tricks to turn it into turbo-power.

Issues Relating to Reduced Warehouse Labor Management Efficiency

Divide the difficulties of labor-management efficiency into two segments to prevent confusion. How labor is managed impacts warehouse labor management’s effectiveness. Failure to identify issues leads to decreased productivity and efficiency of warehouse workers.

Although your company might be content with keeping the status quo, there’s a strong possibility that your employees feel differently. Think about these four situations that have a negative impact on warehouse labor management effectiveness.

Unable to distribute waves across different workers

While talking about waves, it’s also crucial to consider how the facility divides orders among its staff. Directly asking every employee to accept a huge volume of requests seem great, but it will lead to duplication and even more order fulfilment mistakes.

Staff pushback

Employee resistance to practically everything makes labor management improvements challenging. One of the main difficulties supply chain leaders and warehouse managers deal with is this.

Poor use of labor

Speaking of waves, the productivity of warehouse labor management will dramatically deviate if it is not possible to predict how many personnel will be required at any particular time.

In other words, there will be a more obvious difference between peaks and lulls. Labor costs in warehouses will consequently rise. At the same time, customer service levels decline as a result of mistake-prone, exhausted employees.

Improper wave planning

Wave planning in the warehouse is not a novel concept. It describes keeping orders as they arrive and issuing them in batches to staff members. The warehouse is managed in a batch style, which causes peaks and valleys in worker productivity. The employees will eventually be idle. A new group of employees will cost you a lot of money, and peak season volume will strain your current workforce to the breaking point.

Advantages of Better Labor Management

The advantages of better labor management are clear. Increased order accuracy rates. Cycle times get shorter. The cost of carrying inventory decreases as a result of increased worker productivity.

In essence, just-in-time inventory management is made possible by cost savings from one warehouse section that may be invested in other areas. Therefore, changes in labor management have a direct positive impact on every other area of your warehouse.

Data analysis on a laptop

New technology to solve workers’ efficiency

Use sophisticated apps to digitize corporate operations and eliminate paper forms as a quick fix. These apps can use the mobile phones that staff members own and speed up data collecting, enabling businesses to accomplish more with fewer employees. Both help businesses save money.

The lack of workers in the manufacturing, construction, and oil and gas industries can be helped by these apps. But they also go further than that. They can assist with practically every sector of the economy and every industry.

How technology can improve work efficiency

These new applications can improve employee productivity by:

  • Speeding up data collection and access in the field, cutting down on time spent on individual tasks, and giving each person extra daily work time.
  • To give best practice workflows for less experienced workers to follow, more experienced workers must capture their proven processes.
  • Embedding business logic records the tried-and-true procedures of more seasoned personnel and presents best practice workflows for less seasoned personnel to follow.
  • Merging existing data into systems of record or triggering workflows or alarms based on input data.
  • Reducing risk by promptly gathering reliable field data eliminates data entry errors and delays in access to crucial information.

Conclusion

Labor management must come first, no matter what changes are made inside your company. Efficiency in warehouse labor management depends on your capacity to engage with employees and provide them with the training and resources they need to advance.

Your labor management strategy’s flaws will lead to lower productivity and below-par performance. Therefore, supply chain leaders should heed the advice and put it to use.

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