We partnered with a leading 3PL service provider to overhaul their traditional labor planning systems and achieve enhanced workforce productivity, SLA performance, and cost efficiency.
Business Goals
The client is an esteemed third-party logistics service provider that manages an extensive supply chain distribution network in North America. As such a major logistics service provider, they wanted their labor management functions to be on point to match their high-level order fulfillment needs. However, their existing labor planning was based on more traditional systems built upon historical data and tribal knowledge, clamping their business growth in different dimensions.
- Lack of standardized systems to accurately estimate daily labor needs for fulfillment operations.
- Unoptimized labor plans lead to labor shortage/surplus, impacting SLA misses and productivity loss.
- Management hassle in ramping up and down the labor availability to match peak demand scenarios.
Solution
We partnered with the client’s industrial engineering functional teams and developed a sophisticated labor planning model with advanced analytics. The new labor planning system focuses on providing more visibility and control for the stakeholders to achieve heightened productivity without sacrificing cost efficiency.
Key Highlights
- Accurate and efficient labor planning model automated with weekly updates on the latest forecast, planned volume, and operational process rates.
- Powerful analytics providing insights on required labor hours and staffing levels for making efficient decisions on OverTime (OT) and Voluntary Time Off (VTO) recommendations.
- AI/ML-enabled staffing model systems to predict workload demands and accurately create optimal staffing schedule plans.
- Extensive integrations with other ERP systems, Forecast applications and HRMS to achieve centralized labor planning and management.
Outcomes
- 10% reduction in labor-related costs.
- 5% increase in overall labor productivity.
- Order Fulfillment throughput capacity is increased by 12% .
