Workforce Management solutions consist of automated systems, processes and models to ensure that labor costs are optimized with customer service goals.
Workforce management solutions can improve sales and customer service, reduce costs, increase morale and provide a fast ROI. The Atlas web-based system provides multiple location management, multi-level management hierarchy support, workload control, electronic scheduling, labor reporting, messaging and individual employee access.
How Fast is Your ROI?
(source: Retail Technology Trends – June 2005)
*most companies that have implemented electronic labor scheduling have reported a 1%-3% increase in sales and 3%-5% reduction in labor costs
Key Benefits of Workforce Optimization
Workforce Management Solutions have the 5th highest fastest ROI of all technologies, increase customer satisfaction, lower costs and increase sales. By more efficiently managing your workforce, you increase the morale of your employees by keeping them to better schedules and making it easier for you to manage every step of your scheduling.
Using client-specific labor models we can also improve your accuracy, reduce your minimum staffing needs and overtime and give you better controls.
- Workforce Management Solutions have the 5th fastest ROI of all technologies.
- Increased customer satisfaction at a lower cost
- 1% to 3% increase in sales
- 3% to 5% decrease in payroll costs
- Right number of employees doing the right things at the right time
- Increased productivity and utilization
- Better visibility to unnecessary labor costs
- Benchmark to determine top-performing locations
Systems Automation for Labor
Automated retail and service labor scheduling systems have one purpose; to effectively provide automated solutions ensuring an appropriate level of customer service while optimizing the cost of labor. In short, put the right employees at the right time for the lowest cost.
Many companies that have utilized electronic labor systems have seen as much as 3% – 5% reductions in labor costs versus their current paper or spreadsheet labor tools. For most retailers, labor costs are the largest controllable expense in the company, and moving the needle on these costs can produce dramatic improvement in the company’s EBIT. Not all companies will see a labor savings however, as many companies already run appropriate amounts of labor. In these instances, the true benefit in automated labor systems is putting the labor in more appropriate places, where it does the most good for customer service. In these cases, many companies can achieve sale increases equal to half of their average transaction size per incremental labor hour invested.
The ML Group provides a suite of software solutions and custom processes to provide a complete labor management solution from start to finish. We provide solutions for sales and labor driver forecasting, labor modeling, electronic labor scheduling, time & attendance and back-end reporting.
There are a wide variety of proven models for forecasting the drivers of labor, from the simple moving average to more complex seasonal models, to neural nets and liner programming models. The type and method of forecasting often depends on the availability and detail of the client’s data.
A key factor in forecast model selection is how long it takes to actually process the forecast. If a very complex model runs 100 times longer than a moving average model and is only marginally better at prediction, should you use it? ML Group can help your company determine the optimal forecasting strategy for your specific needs.
Before you can accurately create a forecast process, you need to have a clear understanding of what drives labor. This is achieved by creating a labor model.
After you have created a forecast of the drivers of labor requirements, the labor model allocates labor to those drivers. There are a variety of ways to build a labor model, from simple regression models, to complex models developed using time or movement studies. In addition to determining labor for selling or service functions, a labor model must also create appropriate labor for non-customer facing tasks such as cleaning the store, inventory management, putting away deliveries, etc. ML Group can help your company develop an appropriate, dynamic and flexible labor model to ensure that labor is optimized between costs and customer service goals. A good model is also flexible and provides the appropriate levers to manage payroll costs across the chain.
Many companies employ a wide variety of reporting tools, and even more reporting is commercially available, but sorting through all this reporting to cull out the really important metrics of your business can be difficult. ML Group can help your company streamline reporting structures to ensure the true key performance indicators are clearly defined and available, as well as help create new compact reporting tools to give proper visibility to workforce management.