Software that eases
DC labor pains

THIS TIME OF YEAR, DISTRIBUTION CENTER MANAGERS often find themselves bringing in temporary workers by the dozen to meet peak season order fulfillment demands. Although that has the potential to be a headache and a half, there’s a way to minimize the hassles: by using workforce management software.

Workforce management software automates the task of planning, scheduling, and tracking employees. Although these solutions have been used in the retail, manufacturing, and health-care sectors for a decade, they haven’t really caught on in the distribution and logistics space. That’s starting to change as more companies discover their potential for helping manage labor. Distribution centers “are turning to workforce management software solutions to help minimize costs associated with non-pro-ductive time or unnecessary overtime,” says Malysa O’Connor, director of the logistics practice group at Kronos, one maker of this type of software.

In addition to Kronos, a number of other vendors offer workforce management solutions. They include such well-known supply chain software developers as RedPrairie and Infor as well as specialty players like WorkForce and Dayforce. As with most software solutions these days, users have the option of purchasing a software license and installing the program on their corporate servers or accessing it over the Internet on a software-as-a-service basis.

Workforce management solutions do away with the need for spreadsheets to schedule workers. Besides assigning workers to shifts, these applications track time and attendance, overtime payments, and worker absences. They also help companies forecast their labor needs and develop budgets for seasonal hiring. “Implementation of these systems is increasing because more and more organizations are realizing that automating time and attendance tracking, scheduling and planning, and forecasting is critical for efficiently and effectively utilizing their labor,” says Amanda Stirling, a research analyst with McLean & Co., a research and advisory firm specializing in human resources.

For warehouse operations, the software has the additional bene-
fit of helping to ensure that appropriate workers are assigned to
specific tasks, say forklift drivers to a receiving dock. Not only can
workforce management solutions allocate
workers to shifts based on start and stop
times, they can ensure the assigned workers
have the skills required for that shift.
“Scheduling is improved because the solu-
tions take into account all employee vari-
ables such as availability, vacations, overtime
status, skills, and abilities … and work vol-
ume and demand to ensure that the right
people are in the right place at the right
time,” says Stirling.