techwatch
New kids on the LMS block
FOR THE PAST FEW YEARS, MORE AND MORE DISTRIBUtion centers have opted for the software route when it comes to
managing their workforce. In a bid to boost productivity, they’re
implementing labor management systems (LMS), software that
allows companies to monitor individual workers’ activity—say,
picking or putaway—and benchmark their performance against
preset standards. In fact, a recent DC VELOCITY survey found that
14 percent of respondents planned to buy an LMS solution this
year.
As for where they can obtain this software, DCs today have a
number of choices. To begin with, most of the large warehouse
management software (WMS) vendors offer LMS packages or
modules. But that’s just part of the picture. In
recent years, a number of smaller, less-well-known vendors have entered the market. They
tend to specialize in more affordable packages
aimed at small and medium-sized warehouses
and distribution centers, according to Steve A.
Mulaik, a partner with The Progress Group, an
Atlanta-based logistics consulting firm.
These smaller LMS vendors offer both traditional licensed software, which companies
install on their own servers, and hosted versions
that can be accessed via the Internet on a subscription basis. Some of the vendors in this
space include Enteq Systems, Spalding Software,
Next View Software, and Inception
Technologies.
One of the biggest differences between the labor management
systems offered by the smaller players and those available from
their larger counterparts is functionality. For the most part, the
programs marketed by the little guys are stripped down packages
that handle basic functions like monitoring and measuring worker activity.
By contrast, the programs marketed by the big WMS vendors
typically offer a vast array of capabilities. For example, they often
include real-time labor standards—a feature that allows managers
to measure a worker’s performance as it happens against a pre-
established standard for a particular task. “As a guy completes his
work, you get feedback right away,” says Mulaik. In addition, they
typically offer labor planning tools, which managers can use to
determine how many people they need, where they should be
deployed, and when they should be moved
from one area to another.
