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Labor Management System (LMS) Consulting Services

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A Labor Management System (LMS) is a software application designed to manage direct labor human resources within a distribution center operation.  The LMS is a component of mission-critical supply chain execution (SCE) suite of applications.

The LMS typically sits as an application that integrates into a Warehouse Management System (WMS).  There are different types of LMS applications and a range of capabilities within the solutions available to the market.  The main difference whether LMS applications are predictive or reactive.

The reactive LMS is essentially an “after the fact” reporting system that tells management the work that has been done by the operators within the warehouse operation.  The typical scenario is a daily report that provides summary information by: job function; operator; and time of day; such that management can understand the throughput productivity rates by associate.  While these systems may be informative, they generally are less effective than predictive LMS applications.

Labor Management Systems

The predictive LMS application predicts the duration of time required to complete a task generated within the WMS.  These LMS applications are often sophisticated and require detailed XYZ location coordinates such that every work instruction has a travel time that can be calculated based on the associate’s location in the warehouse.  A robust LMS application will enable engineered labor standards to serve as the basis for predicting the time required to perform the work.  Throughout the day the associates can be kept informed of their progress versus the expected standard.

The deployment of predictive labor standards often requires a trained external industrial engineering resource who knows the standard number of seconds required to reach into a pick location, to scan a label, to grasp a case, to place the case onto a pallet, to capture any required data into the RF terminal, to travel, etc.  Since labor standards can be deployed for any direct labor job functions from receiving through to shipping, the industrial engineer relies extensively on experience to develop a fair standard that is realistically achievable throughout the work shift.  In distribution centers with organized labor, the engineer must develop standards that are negotiated with and accepted by the union.

It is important to understand that LMS applications are highly specialized solutions that can be purchased as standalone bets of breed applications or as integrated modules within a suite of supply chain execution software applications.  It is not unusual for LMS software combined with engineered labor standards to provide a 10 - 15% productivity increase in high volume distribution centers where the return on investment can be less than 12 months.  The reason for this is simple - people who work in distribution centers appreciate having an understanding of how long it should take to do their job.

MWPVL International, in partnership with selected partners, provides LMS consulting services to companies seeking the benefits of labor efficiency improvements.  MWPVL International works with suppliers, customers and business partners to provide trusted experience in helping companies with the following types of questions:  

  • Which LMS software application is best suited for our company, distribution center operation, and financial budget?
  • What is the business case for investing in a LMS application?  What is the total capital investment requirements including internal and external resources and what financial benefits can we realistically expect to obtain from a new system?
  • What are the main differences between the solutions available within the existing market place and which vendors present the match to our company’s requirements?
  • Is there a structured process that we should follow when selecting a LMS application to ensure that we have done the appropriate due diligence to protect our company’s interests?

MWPVL International Inc. provides strictly unbiased advice and trusted experience in helping companies through the following efforts: 

  • Developing the business case and financial justification for a LMS application
  • LMS requirements definition and RFP Development
  • Development of structured software demonstration scripts
  • Vendor/solution evaluation and selection
  • Software negotiation and acquisition
  • Developing the project budget, plan, schedule, internal and external resource requirements for deployment
  • Project Management
  • Software implementation
  • On-going support

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MWPVL International Inc. is a full-service global Supply Chain, Logistics and Distribution Consulting firm.  Our consulting services include Supply Chain Network Strategy, Product Sourcing Strategy, 3PL Outsourcing Strategy, Purchasing and Inventory Management, Distribution Center Design, Material Handling Systems, Supply Chain Technology Advisory Services (WMS, TMS, LMS, YMS, OMS, DMS, Purchasing, Forecasting, Slotting), Lean Distribution, Transportation Management, Distribution Operations Assessments, Warehouse Operations Consulting and much more.

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