How Labor Analytics Can Improve Your Warehouse

Warehouse employees at work in a warehouse

Warehousing is a complex operation that requires careful management of both resources and personnel. Many businesses have turned to labor analytics for help to optimize the efficiency of warehouse operations. Labor analytics is the process of gathering, analyzing, and interpreting data about a company’s workforce in order to inform decisions about workforce planning, scheduling, and performance management. In this blog post, we’ll explore how labor analytics can improve your warehouse, the types of data that you can analyze, and how you can use these insights to improve warehouse operations.

The Benefits of Labor Analytics

Labor analytics provides warehouse managers with valuable insights into their workforce by collecting and analyzing data on employee performance, absenteeism rates, job satisfaction levels, etc. By leveraging these insights, warehouses can become more efficient and productive while also reducing costs. Additionally, labor analytics can help identify gaps in training or other areas where improvement is necessary. This allows warehouse managers to make informed decisions about allocating resources and maximizing productivity.

Implementation of Labor Analytics

Firms should follow a series of procedures to apply labor analytics in warehouse operations. This includes establishing business goals, analyzing data availability and quality, picking the correct labor analytics tool(s), defining data metrics, and building an implementation strategy. Additionally, the effective application of labor analytics may have considerable advantages for decision-making, optimal workforce planning and scheduling, higher labor productivity, and lower costs. Additionally, labor analytics can help with lean-warehousing management. That said, businesses such as Amazon, Walmart, and DHL have effectively adopted labor analytics to optimize their warehouse operations and acquire a competitive advantage in the market. By employing labor analytics solutions, firms may make data-driven choices that boost productivity, cut expenses, and improve overall performance.

Types of Data That you can Analyze

Labor analytics utilizes a variety of data sources in order to gain give you a comprehensive overview of the workforce. This includes:

  • Time tracking data: such as hours worked per day
  • Attendance records: the number of days taken off for vacation or illness
  • Employee surveys: these can help you measure the job satisfaction of your employees
  • Training records: which you can use to assess the skill level of your workforce
  • Productivity metrics: help you figure out the accuracy of the average pick-rate

By combing through all this information, organizations may get a bird's eye view of their staff and learn what they can do to boost productivity and save expenses.

It can help you Manage inventory demand

According to experts at Zippy Shell Northern Virginia, proper inventory management should be a top priority for all distribution and fulfillment centers throughout the globe. And that is where Labor Analytics comes in. With the right analytical model, warehouse managers can predict the timing and magnitude of incoming and outgoing inventory flow by evaluating past data sets in real time and identifying the similarities in current order patterns. Analytics for warehouse management may help you better understand your clientele and respond to their storage and inventory needs. 

Using Insights from Labor Analytics

Once you gather and analyze all the data, you can then use it to create an actionable plan to improve warehouse operations. For example, labor analytics can provide insight into staffing needs—what roles you need to fill; What shifts employees should work How much overtime you should schedule. It can also provide insight into training needs—which employees need additional training or refresher courses or what skills they need in order to increase their productivity. These insights make it possible for warehouse managers to make well-informed decisions that can contribute not only to the effectiveness of the warehouse but to its sustainability and long-term viability as well.


In conclusion, labor analytics is an invaluable tool for optimizing warehouse operations by providing actionable insights into staffing levels, shift schedules, training needs, etc. By leveraging the insights gained from labor analytics data analysis tools such as Workforce Insight’s Warehouse Optimization Suite, warehouses can become more efficient while reducing costs—allowing them to stay competitive in today’s market landscape! With the right tools at your disposal, you, too, can use labor analytics to improve your warehouse operations!

For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.

If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.