For most distribution and logistics firms, inefficiency is ironed out in favour of lean supply chain management and optimised processes. Any wasted time, effort and money is noted and minimised as much as possible. This should extend to your staffing. In a world where wages are rising fast, inefficient deployment of your people is akin to wasting fuel or energy. So what are some of the common issues that lead to bloated labour budgets – and what can be done to prevent them?
Dwell time or detention
One of the significant inefficiencies in logistics is dwell time. This is the period when drivers are idle, waiting for loading or unloading. Extended dwell times lead to increased operational costs and lower productivity.
Solution:
To tackle dwell time effectively, it’s crucial to have an accurate view of how much of it makes up a driver’s day, how it varies at different ports, warehouses or last-mile destinations, and if it is experienced disproportionately by some of your staff. While digital tachographs are mandatory, more granular information is needed to understand how much time drivers spend working when the vehicle is stationary and how much is actually wasted.
A time and attendance solution means dwell time can be created as a job category. From this, operations leaders can generate reports and identify trends. This allows them to zero in on where the problems are and implement targeted mitigating measures, like improvement programmes for appointment scheduling or streamlining documentation processes.
Overstaffing due to unpredictable supply chains
Unpredictable supply chains and markets make it difficult to fine tune the amount of people you need to exactly meet requirements. Not wanting to be short-staffed, logistics leaders might find they end up overspending on labour.
Solution:
Improved workforce management allows you to be more strategic and agile with your staffing levels. When staff availability is difficult to ascertain and scheduling shifts is a time-consuming, complicated task, rosters must be spun up in advance and there is a temptation to deploy surplus staff as a safety buffer.
With an auto-rostering tool integrated with time and attendance software, operations leaders can enjoy clear oversight of all the staff at their fingertips and create schedules quickly and easily. This gives them the freedom to plan shifts reactively, ‘on the fly’ to meet emergency requirements. Employees can also indicate their availability in the software, meaning you can choose from a willing workforce when more staff are needed. This means you can deploy workers as and when you need them, and avoid the risk of overstaffing.
Right person, wrong place
Inefficient workforce management will see employees assigned to jobs that do not suit their skillset, which could lead to people being underutilised for their core competencies. This mismatch can hinder overall productivity and morale – with studies showing that those who feel overqualified for their job are more likely to experience ‘psychological strain’.
Solution:
Rostering software that considers individual skill sets ensures the right people are assigned to the right tasks. Such software helps in creating a more efficient workforce, where employees are engaged in roles that match their competencies. This not only boosts productivity but also enhances job satisfaction, reducing turnover rates.
Effective workforce management is essential for boosting profits in distribution and logistics. OneAdvanced’s Time & Attendance solution allows you to think more strategically about where the waste is generated by your workforce management processes and systems and identify opportunities for improvement. Start a conversation with us to find out more.