Read what industry experts and users say about the results from implementing a Labor Management System to boost labor productivity and reduce labor costs.

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What industry experts and users
say about implementing LMS
Confirming the Value
of Labor Management
Systems

2. © Copyright TZA. All rights reserved. Confidential & Proprietary 2
Implementing LMS is
Low Risk, High Reward
Very little pain and risk, with
labor savings of 10% to 20%
or more, which are substantial
and very consistent across
companies.
“ “
Implementing LMS is more
than worth it, especially in
labor-intensive industries
where staffing is typically the
largest single variable cost.
“ “

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LMS Users Confirm
Productivity Improvements
91% said they had
experienced productivity
improvements as a result of
implementing a labor
management system.
“ “ 60% said they had
productivity improvements of
between 10% and 24%, and
22% reported improvements
of more than 25%.
“ “
Survey of current Labor Management System Users:

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Quantifiable Productivity Gains
& Cost Savings from LMS
0
2
4
6
8
10
12
14
16
Net Benefit from
Incentives
Direct Labor
Improvement
Indirect Labor
Improvement
"Black Hole"
Time
LMS Can Drive Substantial Savings Across
Direct & Indirect Labor • 10% improvement from the use of
incentive programs, after cost of
incentives have been considered
• 15% improvement in direct labor
productivity from discrete standards,
individual reporting, improved training
and coaching, etc.
• 7% improvement from better control
and reduction of indirect labor
• 5% improvement from elimination of
“black hole” time, or hours that are
unaccounted for and uncontrolled

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Confirming the Value
of Labor Management Systems
• Additional information sources:
• Putting Labor Management Systems to Work
(http://www.inboundlogistics.com/cms/article/putting-labor-management-systems-to-work/)
• 7 Ways to Optimize an Existing WMS
(http://www.logisticsmgmt.com/article/supply_chain_technology_7_ways_to_optimize_an_existing_wms)
• State of Labor Management Systems (LMS)
(http://www.logisticsmgmt.com/images/site/LM1204_SCT_LaborManagement.pdf)

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Client Results from
TZA Labor Management Solutions
16.2% increase in
productivity
Improved
Performance
Productivity
gains of 26.2%
$2.5 million in
annual labor savings
21% productivity
improvement
$4.9 million annual
labor savings
10.3% productivity
improvement
9.2% cost per case
reduction
Labor cost reduced
by 13.8%
Reduced
Cost

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For more information:
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