Most DCs that install Lucas optimization software expect to reduce labor costs through improvements in picking productivity. But many of those same companies also see significant improvements in management productivity through the use of our real-time management dashboards. It is often difficult to quantify the financial benefit of improved management tools, but Perry Lundberg of recently shed some light on a direct cost savings experienced using the Lucas Management Console on tablets. You might even call this additional savings a windfall.
The installation of Lucas’ voice directed warehouse optimization suite led to improvements in accuracy and productivity, but Lucas Management Console on tablets created a previously unforeseen benefit for supervisors. Before Lucas, supervisors relied on Line Leads in each work area to make sure work was progressing in a smooth manner. The Line Leads would alert the supervisors of any issues. With Lucas, supervisors now have that information at their fingertips in real time. And since Lucas uses a web interface it can be run on a standard tablet, which eliminated the need for supervisors to sit behind a desk in their offices. By giving supervisors the ability to get out on the floor, they no longer needed Line Leads to be their eyes and ears.
With supervisors out of their offices the company was able to assign the line leads to other duties, effectively eliminating 12 positions that were no longer necessary. They had anticipated a net reduction in labor costs, but eliminating twelve positions was icing on their ROI. Making these twelve experienced workers available for other roles had other indirect paybacks for their operation.
Not all DCs will experience such a direct, immediate cost savings through the use of the Lucas Management Console, but it certainly is a factor companies should keep in mind when they are looking for ways to reduce costs and improve operations.