After President Trump’s recent announcement of a preliminary trade agreement between the United States and Mexico, North American manufacturing companies and third-party logistics companies (3PLs) are aggressively looking for long-term ways to reduce costs.
A year and a half ago I came to Sedlak as a 40+ year veteran of the healthcare supply chain. I thought my charge was to teach these Industrial Engineers about healthcare. Instead, I have learned that healthcare is missing opportunities for distribution and logistics cost savings and optimization.
Labor is typically among the top operational costs in a distribution center, and the exploding ecommerce demand for warehouse workers is creating a shortage of laborers that is driving up the costs of recruiting, hiring and training for the companies who need them.
Every company seeks maximum return on investment, and labor is one of the most expensive assets in a distribution center. A labor management system (LMS) is an integral part of realizing the maximum benefit of both the people and technologies in a distribution operation.
In the following video, Sedlak's Lou Cerny describes the benefits, rates of adoption and important considerations in implementing a labor management program.