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Labor Management Systems (LMS) are one of the fastest growing segments in the Supply Chain industry. Companies embracing these systems are able to reduce their labor costs by 10%-20%. This gives them a significant competitive advantage over operations that are not utilizing these tools. The risks of not implementing an LMS include:
- Mandated layoffs – forced head count reduction to reduce labor costs.
- Outsourcing the distribution function – Companies spend over $100 Billion per year to outsource their distribution to Third Party Logistics (3PL) providers. This trend continues to grow at 3x the pace of the rest of the economy.
- Lost Revenue – Competitors who have embraced LMS are taking business away from companies who have not yet optimized the productivity of their workforce
- Enterprise LMS Requires Economies of Scale: Enterprise based systems are very expensive and therefore give larger facilities a competitive advantage over small and mid-sized operations. Labor Performance is the first SaaS (Software as a Service) model in this market.
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