Posted by: Today's Tip Contributor on April 15
How well you optimize your company’s three key assets—customers, product and service offerings, and labor—can impact pricing, competitive edge, and business success. Yet many organizations optimize only two of these three assets: customers, using CRM solutions, and product and service offerings, through ERP and supply chain management solutions. Labor, an organization’s most valuable asset and largest controllable expense, is often overlooked.
Many companies try to cut costs by relying on ERP solutions to help inform them when it comes to making labor-related decisions. While ERP systems are a valuable investment to track transactional data, they lack the sophistication required to control labor costs and optimize workforce business processes. For example, ERP solutions provide data in batch mode, so it takes at least 24 hours to detect labor-related problems, potentially leaking tens of thousands of labor-related dollars per year. If you seek to fully optimize all your assets, consider integration with a best-of-breed workforce-management technology. Here are just some of the benefits you’ll gain:
Improved productivity. Having real-time insight on what employees are doing and the associated costs lets you proactively control labor expenses. Quickly correcting understaffing or overstaffing minimizes unnecessary overtime, improves workforce productivity, and reduces operating costs. You’ll also gain centralized control and application of work and pay rules, along with audit trails to minimize the costly risk of noncompliance with federal, state, and union labor regulations.
More accurate pricing. Optimizing workforce business processes and enhancing labor utilization makes it easier to offer competitive pricing by enabling you to fully account for and control your labor costs. With proper scheduling, you can make sure you have the right person in the right place at the right time to deliver the results you need.
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