Major 3PL launches IT tool to boost labour productivity

The 3PL has deployed the new labour productivity system in 20 logistics facilities to date, including dedicated customer warehouses and hubs for XPO Direct, its shared-space distribution network. Approximately 200 total implementations are planned by year-end.

The system ‘puts warehouse operations under a technological microscope’, providing managers with insights at many different levels – from total facility output to the productivity of individual workers and teams. 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: “We’re putting new technology in the hands of our logistics operators to realise efficiencies for our customers. 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 fulfillment speed.” 

XPO’s labour 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 deep visibility into workforce operations, including the number of scheduled versus active workers by job role in real time.