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Labor Management System (LMS) Consulting Services

MWPVL International Labor Management System LMS Consulting Services

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

The LMS is typically an application that integrates into a Warehouse Management System (WMS).  There are several different types of LMS applications with a wide range of capabilities.  The main difference is 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 that a daily report 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 are generally less effective than predictive LMS applications.

Labor Management Systems

The predictive LMS application predicts the duration of time required to complete a work task or process.  These LMS applications are often sophisticated and may require detailed XYZ location coordinates such that every work task has a travel time that can be calculated based on the associate’s current 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 work tasks.  Throughout the day, an associate can be kept informed of their progress versus the expected standard.

The deployment of predictive labor standards typically requires a trained 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 shipping, the industrial engineer relies extensively on experience, and time and motion studies to develop fair standards that are realistically achievable for each work process.  In distribution centers with organized labor unions, the engineer must develop labor 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 best of breed applications or as integrated modules within a suite of supply chain execution or WMS software applications.  It is not unusual for engineered labor standards to provide a 10 - 15% productivity increase in high volume distribution centers such that the return on investment can be less than 18 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 our business partners, provides LMS consulting services to companies seeking the benefits of warehouse labor efficiency improvements.  MWPVL International works with suppliers, customers and business partners to provide unbiased LMS consulting services that address the following types of questions: 

    • Which LMS software application is best-suited for our company and financial budget?
    • What is the economic business case for investing in a LMS application?  What are the total capital investment requirements including internal and external resource requirements? What financial benefits or competitive advantage can our company realistically expect to obtain from a new LMS application?
    • What are the main features and functions that our company should expect from a LMS application?  
    • What are the main differences between the commercial LMS applications available within the market place? Which vendors should our company consider evaluating based on our operating profile and warehouse-specific requirements?
    • Is there a structured process that our company should follow when selecting a LMS application to ensure due diligence and to protect our interests?
  • MWPVL International provides strictly unbiased consulting services and trusted experience in helping companies with: 
    • Developing the economic 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


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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, Lean Manufacturing,Transportation Management, Distribution Operations Assessments, Warehouse Operations Consulting and much more.