Labor Management System (LMS): The New Age of Employee

The manufacturing industry, e.g., logistics companies, is mostly operating at relatively small profit margins. Payroll, subcontracting, and other labor-related expenditures are also significant contributors to the profitability of operations. Many companies find it difficult to reduce these overhead costs. Recently, supply chain companies have made better use of technologies for labor management – Labor Management System (LMS), which is generally very easy to install, maintain and deploy.

Well-built LMS platforms help enterprises minimize their overhead expenses, boost profit margins, and make educated decision-making based on raw measurements. Software for labor management has been around for a long time. However, technologies designed particularly to aid warehouse operations dealing with inventory control, shipping, and order fulfillment have been created in recent years. We will present the most crucial information concerning LMS, some of the reasons why warehouses are installing these systems, as well as the advantages they provide.

What is the Labor Management System?

A LMS is software that takes employee activity data and reports productivity levels on a group of employees, or individual employees. A LMS allows companies to maximize employee productivity by getting visibility into where their workforce labor expenditures are being spent and how to maximize their labor. The LMS constantly captures and integrates data from multiple sources: Warehouse Management Systems, Time Clocks, RF scan, MRP, ERP, CRM and more. 

What are the benefits of a Labor Management System?

Collect & report critical data – A labor management system gathers and delivers performance data to track progress towards targets and goals.

Increase employee satisfaction – Improvement in employee satisfaction stems from fair performance objectives, mentoring and reward programs.

Enhance productivity & reduce labor costs – Managers can discover and adapt unproductive work procedures. This means they can optimize their employees and cut labor expenditures overall.

Improve management decisions – A labor management system gives in real time insights that enable management to reassign work, move resources and timely management of expenses. 
Increase customer satisfaction – Labor management systems may better anticipate and predict assignment completion through the collection and understanding of data to allow consumers to get their orders in time.

Predict performance standards – Recently, more advanced labor management solutions use machine learning to deliver more dynamic and predictive performance standards. This means labor management systems are equipped with working standards to give better labor insights. Traditionally, a few industrial engineers used stopwatches and clipboards to conduct time studies to determine labor standards. These predefined models are static, have few variables and demand heavy maintenance. Meanwhile, machine learning systems evaluate warehouse data to generate predictive models for planning the workforce. This data may be collected from a variety of sources, such as storage optimization, mobile devices, and storage control systems.

Last thoughts

A Labor Management System is an extraordinary tool for managers and staff to collect the data needed to make educated decisions, minimize wages, and maximize their employees’ performance.

Labor Management Systems vary in different forms and business scales, which need to be redefined before implementation. As the leading human resources adviser with more than 10 years’ experience in Vietnam, we employ our HR management framework with newest technologies that prioritize business data’s confidentiality and automated HR outsourcing services that are highly customized to match different business needs, making it a perfect human resources collaborator for long-term collaborations. Contact us if you want to save time and resources for your business with our innovative Labor Management System.