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Manhattan Associates Labour Management Solution allows retailers to forecast holiday labour needs
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LONDON and ATLANTA – December 19, 2007 – Global supply chain solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) has released the first labour
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forecast/optimisation application designed specifically for the needs of distribution managers. Manhattan Associates' new labour forecast/optimisation functionality, embedded in the industry-leading Labour Management Solution
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(LMS), enables distribution managers to forecast the number of employees required to perform estimated work down to the day, shift, job and zone level.
The holiday season is a critical time of the year for retailers, who depend on operational excellence to get the right product to customers at the right time. This new functionality takes historical volumes and translates them into forward-looking labour forecasts, allowing a distribution manager to control costs and increase productivity by optimising the balance of regular, overtime and temporary labour to ensure workers are on hand when needed. In addition, the LMS can identify where shortages or excesses exist and send alerts well ahead of time, enabling the distribution manager to take corrective action.
"Optimising labour is quickly becoming one of the most significant challenges facing distribution operations," said Jim Tompkins, president and CEO of Tompkins Associates, a leading supply chain consulting firm. "Manhattan Associates' innovative approach to providing visibility to future demand is a huge step toward solving the labour optimisation problem."
According to a recent study by the U.S.-based Supply Chain Consortium, increases in peak versus non-peak volumes range from 15 to 300 percent depending on the company and vertical market. The study found that companies paid twice as much in overtime and temporary labour costs during peak months compared to non-peak months. "Warehouse staffing has been traditionally reactive, based on upstream planning processes and volatility of demand," said Peter Schnorbach, senior director of product management at Manhattan Associates. "There has been no reliable way for distribution managers to plan their labour resources. When volumes rise, managers increase overtime and temporary help, because they have no choice."
The Supply Chain Consortium found that the average temporary distribution employee requires between 20 and 96 hours of training. When managers can see and predict incoming work—even in the short to moderate term—they can plan their labour needs in advance, ensuring that their workforce has the training to be productive, without torpedoing the warehouse labour budget.
"By predicting the need for temporary workers, managers can eliminate premiums for immediate staffing while scheduling shifts that utilise employee time most effectively," continued Schnorbach. "Together, these improvements have impacts far beyond the warehouse as they reduce the cost of goods sold and increase overall profitability."
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Tesco and Stobart join forces with PDM Group to run on renewable energy
Tesco has announced that its new distribution centre in Widnes will be completely powered by renewable energy generated from food waste, thanks to a partnership between the supermarket, multimodal logistics company Stobart Group and the UK’s largest food waste recycler, the PDM Group.
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