Selecting the Right Labor Management System (LMS)

Ask the typical warehouse manager to reveal his or her wish list and "better labor productivity" will probably be at or near the top of that agenda. Constrained by four walls and charged with managing a long list of monotonous, repetitive tasks on a daily basis, these professionals revel in being able to squeeze additional productivity from their labor forces. To achieve that goal, some are turning to Labor Management Systems (LMS).

Used primarily by manufacturers and distributors, LMSs report on all labor activity and then compare that activity both to historical data and established labor standards. Utilizing that data, a company can more accurately forecast the number of workers it needs to handle seasonal business fluctuations, for example, or to best allocate human resources when half the staff comes down with the flu. 

Sold as part of a larger Warehouse Management System (WMS), as a standalone system, or as a component of (or, an add-on for) enterprise-wide platforms like a Microsoft Dynamics ERP solution, an LMS measures labor productivity and compares it to preset benchmarks. With this information in hand, companies can monitor performance levels, compare historical data, and quickly identify "problem areas," usually in real time. The standalone LMS generally offers more functionality and granular data than a WMS-based system that focuses on tracking the productivity of individual workers.

Proper Selection Counts

Dynamics users looking for improved labor management can take the best-of-breed approach by working with vendors like Manhattan Associates, Workplace Systems, Kronos, or Infor - all of which offer some version of a standalone LMS. Companies that already have a WMS in place should use their existing platforms as a starting point, advises Dwight Klappich, research vice president for