Labor Represents over 75% of your costs - are you managing it effectively?
No other cost has as much variability and impact as Labor. Yet, organizations are often unable to measure, control and manage labor costs in an effective way.
Controlling for new staff additions - in planning processes or during the year - is a standard way to manage but often does not focus on understanding what work gets done or how it relates to underlying business activity
Unused capacity is the most actionable hidden cost; optimizing for the right level to cover forecasted business activity with sufficient slack without having too much capacity is critical for effective cost management. Ensuring that capacity cost is measured separately means that true costs can be developed and used for strategic pricing.
There is a better wayWithin Anaplan, our Labor Modelling app develops a predictive model of required capacity and optimizes it against available capacity.
The capacity model allows for simulation of changes in business volumes, activity and product mix, and changes in business productivity from process or technology change. Connect this with Demand Planning capabilities under statistically-driven scenarios for a dynamic ability to plan and manage required resources.
The model can be further connected to Workforce Planning apps to plan for the financial impact of changes, and to forecast recruiting and training needs to meet anticipated business demand.
BetterVu's Labor Model
Labor Planning is the ability to optimize Labor Supply against Labor Demand. BetterVu uses an Activity-Based approach to determine the required resource hours needed to meet anticipated demand.
Workforce and Labor Planning Use Cases
Labor Planning use cases are limited only by your needs and imagination! Start with one and expand. Connect them together and to other models for comprehensive and agile planning for your largest resource cost. Drive Efficiency, Improve Service Quality, Align resources consistently across the enterprise.
Demand-Driven Resource Planning
Match resource needs to fluctuating volume
Use an activity-based approach to determine the right resource levels needed at any time of the day and any day of the week based on forecasted demand and associated effort. Align resources by team based on work routing and required skills . Compare against internal peer groups. Track and communicate improvements over time.
Strategic Labor Planning
Plan for the right levels to support evolving needs
Match strategic business forecasts to operational support needs. Determine the right staffing needs including safety resource levels. Incorporate anticipated attrition and recruiting / training efforts. Forecast total labor costs.
Watch the video to learn more.
Optimized Staff Scheduling
The right people at the right time, within constraints
Scheduling is complicated. Consider availability by staff, rules for staffing and utilization, likelihood of absence, legal requirements, etc. Apply Anaplan's Optimizer to provide a first start, and then use manager overrides. Integrate into your staff scheduling system.