Save Time and Money: Why Real-Time Workforce Planning Software is Essential in the Logistics Sector

In logistics, timely deliveries, optimized routes, and efficient labor management all affect profitability and customer satisfaction.

However, ensuring all the above factors are in place is complex, especially when dealing with a large, dispersed workforce. And it will only become more difficult if the global market grows at its forecast CAGR of 9.35% between now and 2033.

Traditional approaches to WFM – and the accompanying workforce management software – of course assist organizations in achieving these objectives. However, introducing a real-time component takes things a step further, bringing greater efficiency gains and cost reductions. In this article, we’ll explore how it works in detail.

Challenges of Workforce Management in Logistics

Logistics companies face unique WFM challenges. Drivers, warehouse staff, dispatchers, and support teams all contribute to the efficient movement of goods from origin to destination, but managing this varied workforce is no easy feat – it can be time consuming and there’s scope for significant waste. Here’s why.

Demand Fluctuations

Of course, demand for logistics services can be highly variable, with significant fluctuations influenced by seasonal changes, promotions, and unexpected surges in consumer activity.

Traditional workforce planning often lacks the flexibility to adapt quickly, leaving companies either understaffed during peak times or overstaffed in slower periods, leading to inefficiencies and excess costs.

Worker Shortages

A 2023 survey of 1,000 supply chain and logistics decision makers in nine European countries, Canada, and the US, found that 76% reported worker shortages, with 37% rating shortages as high or extreme. The areas most affected were transportation and warehouse operations, and 58% said these shortages have negatively impacted service levels. With less workers available, it becomes all the more important to allocate them effectively.

Cost Management

Labor costs make up a significant portion of operating expenses for logistics companies, making cost-effective scheduling essential. This is especially vital as companies face increasing cost pressures from rising energy and fuel costs. Warehouses incur substantial energy expenses to operate lighting, heating, and machinery, for example, adding to the cost burden.

Real-time workforce management solutions help optimize staff allocation and reduce staffing expenses, offsetting some of these operational cost pressures.

Geographical Dispersion

The logistics workforce operates in various locations, with drivers on the road, warehouse staff at distribution centers, and field support teams in different regions. This adds complexity to workforce management, making real-time visibility essential. Without it, coordinating shifts and efficiently allocating staff to locations that need them most is challenging.

Complex Labor Scheduling and Compliance

Labor laws, safety regulations, and working hour restrictions further complicate workforce scheduling. In addition, a shortage of drivers, a diverse range of roles and contracts, and complex rule sets – including those linked to temporary or agency staff – add more layers to the planning process.

Traditional workforce planning software and methods lack the agility to address the challenge above, often relying on static schedules and manual data input that quickly becomes outdated. This approach can lead to inefficiencies, overstaffing or understaffing, and ultimately, increased labor costs and potential compliance violations.

On the contrary, real-time workforce planning aligns workforce requirements with immediate operational needs – in a compliant manner.

 

How a Workforce Management Solution with Real-Time Features Transforms Logistics

Dynamic Employee Scheduling

Workforce management systems that offer real-time capabilities take in live data from multiple sources, such as customer orders, inventory levels, and GPS data, providing companies with an up-to-date view of workforce needs. This means schedules can be adjusted at short notice.

For example, suppose an unexpected shipment arrives or a delivery route is delayed; with this information made available immediately – in a centralized way – managers can quickly adjust staff allocation to handle the situation.

Forecasting Labor Requirements

Predictive analytics using the data collected by WFM software allows organizations to anticipate demand based on historical trends. This enables proactive planning, so companies can prepare for peak periods and ensure adequate staffing levels well in advance.

Cost Savings

Dynamic scheduling and forecasting both prevent overstaffing and understaffing, reducing costs and ensuring resources are allocated where they’re needed most. It aligns staffing with actual operational demand – not the demands of yesterday, last week or last month, but what’s going on now.

Greater Operational Efficiency

This alignment is not just about handling unexpected situations. It also optimizes the matching of demand with the availability of the right workers. In turn, this reduces downtime and boosts productivity, helping companies operate at maximum efficiency.

For example, in a distribution center, real-time data could identify staff available for incoming shipments, allowing immediate reassignment to high-demand areas and eliminating idle time.

Better Regulatory Compliance and Workforce Safety

The logistics sector is subject to strict labor laws and safety regulations, especially regarding maximum working hours for drivers. Workforce planning software enables compliance by accurately tracking worked hours and detecting deviations, ensuring employees get the required rest periods.

Greater Employee Engagement

Effective scheduling benefits not only organizations on the whole but also their employees; when schedules are accurately planned and communicated in advance, staff are less likely to feel stressed by last-minute changes.

WFM software with mobile capabilities further improves employee satisfaction, providing instant access to schedules and the option update availability without having to contact anyone directly.

How Our Workforce Management System Aids Logistics Companies

Logistics is one of the primary sectors we serve, our enterprise workforce management software supporting real-time WFM processes. Here are some of its standard features – and some useful tools for logistics companies in particular.

Advanced Time Evaluation Engine

MANUS WFM features an advanced time evaluation engine. It processes time and attendance data according to the rules relevant to each worker, then generates a payroll file for all workers, streamlining compensation management.

Also note that attendance tracking for drivers is straightforward – the software registers driving hours, which can be interfaced as worked hours within the WFM system.

Advanced Compliance Engine

Our compliance engine monitors and enforces compliance with all applicable regulations. It manages by exception, alerting staff to deviations that need remediation – freeing up their time for other tasks.

Activity-Based Costing

Our software provides insights into scheduling requirements based on real-time operational needs. For example, in a warehouse setting, it can calculate items to be picked per hour per employee and suggest appropriate shifts so you can assign staff accordingly.

Employee Self-Service App

Our Employee Self Service App allows employees to manage their availability from their mobile devices. It provides the flexibility for them to swap shifts or request adjustments with minimal administrative intervention.

Reporting Dashboards

The software features reporting dashboards to provide insights into labor costs, productivity metrics, and other areas. For example, warehouse-specific metrics such as items picked per hour help manage productivity in real-time.

Flexible Integrations

Thanks to our API, the software integrates with other tools such as analytics or performance management platforms, helping you gain deeper insights from your workforce data.

Integration with Warehouse Management Systems (WMS) can streamline order processing by scheduling based on skills and certifications, such as quality control or health and safety.

Easy Onboarding for Temporary Staff

MANUS WFM supports seamless scheduling for temporary or agency staff, simplifying onboarding and integration with external human resources systems. Agency partners can access clocked hours, ensuring accurate payroll management for their workers.

 

Conclusion

Logistics companies cannot afford inefficiencies in workforce planning due to the importance of meeting delivery timelines, decreasing staffing expenses, and maintaining compliance.

Real-time planning is the key to effective workforce management. Thanks to capabilities such as dynamic scheduling and labor forecasting, you can reduce costs and minimize waste.

In fact, MANUS WFM helps logistics companies reduce labor cost by up to 10%. To learn more or request a demo, contact us today.