Articles
RSSOptimizing The Labor Supply Chain - You Can't Manage What You Can't Measure
April 26, 2005
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A study recently reported in ASCET Volume 6 on leveraging the Supply Chain to create
and sustain a high performance business noted that high performance businesses are
adept at using information to make the right decisions at the right time 1 . Compared to
less effective organizations, they:
- Gather more and better information about their business and competitive environments
- Analyze that information more thoroughly and make better decisions based on the results of the analysis
- Act more quickly and decisively on the acquired information
- Monitor their performance more closely
- Improve and innovate continuously
Thus, to achieve the competitive advantage that results from high performance, companies must develop the ability to quickly and effectively gather, analyze and act on information that drives supply chain performance. Yet, while companies spend billions on technology investments aimed at managing and optimizing inventory, they spend significantly less on the performance and measurement of one of the most significant cost elements in their supply chain…labor. Improved labor management provides one of the most significant opportunities for reducing overall supply chain cost. Results of hundreds of implementations show companies can achieve overall labor savings of up to 30 percent using advanced labor productivity solutions.
