BUSINESS BRIEF

Already Have an LMS?

It Might Not Be Big Enough to Drive Out Costs.


BUSINESS BRIEF

Already Have an LMS?

It Might Not Be Big Enough to Drive Out Costs.

Labor Management Systems are designed and marketed toward increasing productivity in the workplace, and therefore reducing costs. Unfortunately, these systems only give you productivity data on direct processes–leaving other cost and time metrics invisible and unutilized. If the goal is to reduce overall costs, then looking purely at productivity metrics isn’t enough. This is why many companies aren’t seeing the cost savings they were expecting with an LMS alone. 

Productivity is not the sole influencing metric of labor costs. How many timeclock hours are spent on profit-generating tasks versus non-generating ones? How many timeclock hours are going to waste, or untracked? What is your cost-to-serve for each customer, process, and product? Are you able to predict your labor needs with labor forecasting? These are all things that cannot be addressed with an LMS alone. But you can use your LMS as a data source to reveal all of these cost metrics.
 

In this guide, you’ll learn

  • The weaknesses of relying solely on an LMS to reduce labor costs
  • Other key metrics contributing to labor costs
  • How to use your LMS data to expose labor cost by product type, customer, facility