How warehouse orchestration systems improve labour management
In a recent study of 1,000 supply chain and logistics leaders in Europe and North America to better understand the challenges associated with the current workforce, 56 per cent of respondents said warehouse operations suffer from the most resource shortages.
The study also revealed that 37 per cent of respondents are experiencing high workforce shortages and 58 per cent believe these shortages have impacted customer service.
Many industry experts blame these shortages on the pandemic when millions left the workforce during the “Great Resignation.”
According to Statistics Canada, the Great Resignation left close to one million job vacancies in Canada, 80 per cent more than in 2019. In 2024, more employees are eyeing job switches than in 2022. The Financial Post reported that a quarter of Canadian employees say they are very or extremely likely to quit their jobs and find new employment. Warehousing jobs for skilled professionals in Canada are in high demand due to the expanding e-commerce industry.
South of the border, close to 100 million Americans quit their jobs during 2021 and 2022. Since then, a ripple effect on the workforce continues to impact companies today. Labour shortages are especially significant in warehouses and distribution centres.
Technology, ranging from warehouse automation to labour management systems, is used to address these labour shortages. However, a new breed of technology has been introduced that is available to help enhance the productivity and efficiency of warehouse labour: warehouse orchestration systems.
Warehouse orchestration systems intelligently allocate tasks to workers based on real-time data and predefined rules to ensure tasks are assigned to the right employees, considering their skills, availability and current workload. If there are any bottlenecks or delays in the schedule, the system can automatically adjust task assignments to ensure smooth operations. This agility is helpful for maintaining high levels of efficiency, especially during peak periods.
Warehouse orchestration systems integrate with other enterprise systems, such as warehouse management systems (WMS), enterprise resource planning (ERP) systems and transportation management systems. This integration ensures all parts of the supply chain are aligned, leading to more efficient labour management and operations.
Managers can make informed decisions on labour management based on data collected from these systems. For example, they can identify patterns in labour demand, optimize scheduling and predict future labour needs. This proactive approach helps in preventing labour shortages and overstaffing.
Warehouse orchestration systems that utilize AI-enhanced algorithms and predictive analytics can look into the future to see what orders are coming in and when they need to be fulfilled. These algorithms aim to optimize labour capacity, inventory availability and demand to ensure the proper labour is at the right place to fulfill the correct orders.
Warehouse orchestration systems enhance workforce utilization by balancing workloads, ensuring employees are neither overburdened nor underutilized. A centralized system allows companies to balance labour across all sites.
A centralized warehouse orchestration platform offers a bird’s-eye view of multi-site data for centralized command and control. These platforms aggregate data and use predictive analytics to rank sites, highlighting areas at risk. Excess workers at one location can be reallocated to sites needing additional labour.
Often, warehouse managers lack awareness of daily orders, leading to labour imbalances across locations, which is costly and affects customer service. A centralized warehouse orchestration platform monitors labour distribution, compares site performance with varying labour levels, and forecasts labour demand using historical data and predictive analytics. This helps improve efficient labour use, enhanced productivity and reduced overstaffing costs. For example, in a warehouse with three shifts and varying truck arrivals, the challenge is to match available labour with demand, which is usually higher at the start of the day. Effective orchestration ensures capacity meets demand, keeping the supply chain flowing smoothly.
This is where warehouse orchestration systems can be beneficial. By better utilizing the workforce to meet demand with available capacity, warehouse operations can work more efficiently and effectively. By leveraging these systems, warehouses can achieve higher worker productivity, lower costs and improved employee satisfaction.