Personnel resource planning in logistics companies is a highly complex task that is often still done by using Excel and paper-based methods. This is the rather surprising result of a study conducted by Fraunhofer IML among 166 locations of renowned companies across Europe, like Amazon or SAP. Despite the availability of advanced planning tools, the traditional methods remain prevalent. So, why stick to these methods even though they lead to more unsatisfactory results in terms of quality and efficiency?
It’s interesting to see that despite the availability of advanced personnel resource planning tools, 78% of participants still use Excel on its own or in combination with another tool for resource planning. This trend spans small, medium-sized, and large companies, highlighting a widespread reliance on traditional methods.
Why are Traditional Personnel Resource Planning Methods so Popular?
There are several reasons why Excel and paper-based methods remain popular. Typically, planners are already familiar with the traditional methods. Learning new software can be time-consuming and requires some training. Manual planning methods also allow for a high degree of customization, enabling planners to create tailored solutions that fit their specific needs. No integration with other warehouse systems is necessary. Management may be reluctant to introduce new planning tools due to perceived high cost. And finally, manual resource planning might seem “good enough,” especially if companies haven’t experienced significant issues that would justify a switch.
While these reasons explain the continued use of Excel and paper-based methods, it’s also clear that these methods are more dependent on planners’ experience. They are also more time-consuming, inaccurate, susceptible to errors and less transparent.
Higher Level of Satisfaction of Users of Personnel Resource Planning Systems
Maybe that is also why the study found, that planners at locations without Resource Planning Systems (RPS) are often more dissatisfied while 65% of RPS-users are very or rather satisfied with their tool.
The need for an RPS is particularly driven by increasing efficiency, increasing order fluctuations and decreasing availability of skilled labor. The reasons why software-based planning methods are not yet used are frequently due to management’s hesitancy to adopt new systems because of the perceived risks and effort involved.
Significant Benefit: Increase in Cost Efficiency
Fraunhofer IML found that warehouse locations that already have an RPS in place see many significant benefits. A major advantage is seen in the increased cost efficiency through optimized personnel deployment, taking into account qualitative and quantitative employee capacities. In addition, the increase in time efficiency through the possibility of faster reorganization and redeployment of personnel as well as the increased planning accuracy and better distribution of the workload among employees are seen as significant advantages of using an RPS.
Here is a list of the positive effects experienced by warehouses that already introduced an RPS:
- Transparency of KPIs and productivity: Identification of problems and bottlenecks for root cause analysis
- Cost efficiency: Optimized personnel deployment taking into account qualitative and quantitative employee capacities
- Handling increasing complexity: Planning and managing large numbers of employees and internal warehouse processes
- Time efficiency: Faster rescheduling and rescheduling of personnel deployment
- Increased productivity: Reduction of idle time and overtime
- Planning accuracy: Consideration of vacancies (including holidays and public holidays)
- Improved work distribution among employees
Significant Improvements through Personnel Resource Planning Systems
The study by Fraunhofer IML highlights that, even though traditional methods are still very popular, the use of Personnel Resource Planning Systems leads to higher satisfaction levels and significant improvements in efficiency, accuracy, and productivity.
Logistics companies need to navigate challenges like order fluctuations and labor scarcity in a highly competitive environment. Adopting advanced personnel resource planning tools like redPILOT will be crucial for maintaining competitive advantage and operational excellence. redPILOT supports customers in optimizing their warehouse operations by providing holistic labor management and resource planning, real-time decision support, identifying inefficiencies, and offering actionable alternatives. By leveraging personnel resource planning systems, companies can enhance their cost efficiency, handle increasing complexity, and improve overall productivity. The system’s ability to integrate various data sources and provide transparent insights into key performance indicators makes it an invaluable tool for modern logistics operations.
RPS systems are often perceived as expensive to implement and maintain, and insufficient when it comes to adaptation to individual needs. But the risk clearly outweighs the benefits. Let us discuss any further questions you may have — contact us.