Optimizing the Labor Supply Chain Part 2. You Cant Manage What You Cant Measure

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. 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 chainlabor. 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.