XPO Logistics announced the launch of a new labour productivity system for XPO Smart, its technology suite of optimization tools. The company has deployed the new system in 20 logistics facilities to date, including dedicated customer warehouses and hubs for XPO Direct. Approximately 200 total implementations are planned by year-end.
The software analyses three key drivers in combination: labour output, including gaps that need resolution; fast-moving inventory SKUs for optimal placement within the warehouse; and outbound production measured against on-time targets.
Mario Harik, chief information officer of XPO Logistics said, “Our labour productivity system uses proprietary algorithms and site-specific machine learning to determine how individual output contributes to collective goals. Very quickly, the system has had positive impacts with cost control and fulfilment speed.”
XPO’s labor productivity system interfaces with the company’s warehouse management system and third-party workforce management applications. The system delivers data through a single dashboard, using machine learning to predict how a decision in one area will affect total operations. Managers gain visibility into workforce operations, including the number of scheduled versus active workers by job role in real time.
Labor productivity is the second major component of the XPO Smart technology suite, following the roll-out of the company’s warehouse management system in 2018.
Source: XPO Logistics
