A Labor Management System, or “LMS”, is any system that tracks worker time by task. Today, payroll systems often provide that functionality. Most Tier One Warehouse Management Systems and On Board Fleet Management Systems provide a similar, more robust labor management functionality. Some LMSs are fully integrated into a Warehouse Management System (WMS) and others were designed initially to be standalone.
Labor Management Systems vary greatly in cost, from less than a thousand dollars to many hundreds of thousands of dollars.
The benefit of utilizing an LMS that is integrated with the WMS is the ability to pass task activity from the WMS to the LMS without the need to manually enter that data into the LMS in real or near real time. Payroll systems typically do not have that integration.
Because Aries Consulting is not affiliated with any software developing company, we can assist the client in selecting the appropriate Labor Management System for their needs.
Proven Results
Labor Management Systems vary in their functionality; however, the best in breed perform the following:
- Track employee begin-day, breaks, lunches, end-of-day timestamps
- Track time clock violations such as late-to-work and late back from break
- Track employee time on task, by task
- Calculate Engineered Labor Standards (ELS) goals
- Report employee performance to ELS goals
- Support Incentive/Gain Share programs, whereby employees are rewarded for performance better than the ELS goal
- Predict and monitor headcount requirements by task (tactical)
- Forecast headcount requirements (strategic)
- Provide Activity-Based Cost Accounting reporting
- Warehouse employee performance feedback records