Cost control is a key priority of distribution and logistics leaders. Although the UK economy has started to show signs of growth, the shallow recession of late 2023 means leaders must proceed with caution when it comes to budgets and spend. Rising fuel, energy and labour prices are top concerns, as is the potential impact of new EU import regulations. More than ever before, time and revenue wastage in operational processes must be avoided at all costs.
Operations leads should consider the cost efficiency of their people management function. Poor attendance tracking loses a company money through time theft, inaccurate data, and inefficient scheduling strategies. Absenteeism also costs businesses, with organisations in the transport industry spending more on employee absences than those in any other sector. Luckily, there are software solutions at hand that can help reduce waste and drive productivity. A robust Time and Attendance solution avoids preventable losses, and allows you to turn data into actionable insights that can lead to significant savings.
Mitigating time theft
Time theft is surprisingly common but often undetected. It frequently involves employees punching in for a colleague, so-called buddy clocking, or falsely reporting overtime. While these instances appear minor, the cumulative effect on your payroll can be substantial. At its absolute worst, see the recent instance of three former drivers for a US trucking company allegedly racking up a combined total of $13,616 from padding the hours on their timesheets.
Biometric clock-in removes the ability for employees to clock-in on each other’s behalf. Fingerprint or facial recognition terminals are virtually cheat-proof, ensuring each employee's time entry is their own. It can also reduce the chance of inaccurate time sheeting, by recording when employees are on site, or requiring drivers to clock-in when they physically return to a yard.
Ensuring payroll accuracy
Payroll errors are not only a costly mistake, but reduce employee morale and waste time; according to a recent study, 80 per cent of companies spend 12 hours or more per month on payroll error correction. Inaccuracies can stem from various issues, from simple data entry mistakes to complex overtime calculations. An effective time and attendance system can play a significant role in contributing towards payroll accuracy. This is especially important in the world of distribution and logistics, where hours are likely to be variable and a set nine to five is not the norm.
Time and Attendance solutions ensure that worked hours, overtime and rates of pay are effectively logged, lowering chances of the discrepancies that lead to losses. When integrated with a Payroll solution, friction is reduced and mistakes are even less likely, minimising human and machine error when transferring timesheets into payroll.
Managing absences effectively
In an industry beset by a skills shortage, distribution and logistics firms struggle with staffing even without taking into account absenteeism. Excessive absences without proper coverage not only hinder productivity but also strain the team that is left to pick up the slack.
By maintaining and analysing historical attendance data, Time and Attendance software can predict and manage absences more effectively. The ability to foresee when there might be a spike in absences empowers managers to adjust schedules or resources ahead of time to minimise the impact.
The unforgiving nature of the distribution and logistics industry demands precise time management. By implementing an advanced Time and Attendance system, your organisation can improve controls of one of its most significant expenses—labour costs.
From direct saving through avoiding time theft to more abstract benefits such as enhanced employee accountability and predictive absence analysis, a Time and Attendance solution can be the strategic cost control ally that distribution and logistics managers have been looking for. It is about more than just recording hours worked; it is about leveraging data-driven insights to optimise your most valuable resource—your workforce.
OneAdvanced Time and Attendance offers a range of features that make it ideally suited to help control costs and boost productivity. It offers businesses flexibility, with the ability to implement advanced rules and customise user experiences. Leaders can choose to use facial recognition and biometrics to reduce the risk of buddy clocking, integrate with Payroll for accurate payments, and collect absence reasons to analyse and predict workforce trends. Find out more and start a conversation with us here.
