Beyond compliance: Workforce management as a driver of competitiveness

Opinions expressed in this article are those of the author.

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Stock image. Image credit: Pixel_B/stock.adobe.com
Article By Damien Durston, head of people management solutions at OneAdvanced ANZ

The manufacturing and distribution sectors continue to encounter rising fuel prices, skills shortages and ongoing supply chain volatility. In such a demanding environment, operational visibility and agility are essential for profitability.

However, many businesses still view workforce management systems as mere compliance tools for tracking hours worked and meeting audit requirements. 

Forward-thinking manufacturing and distribution firms are transforming this mindset. When digitised and integrated with core operations, workforce management (WFM) platforms can improve measurable business results, boosting productivity, service reliability and employee engagement. 

By moving beyond manual processes and spreadsheets, manufacturing and logistics companies can transform how they plan, monitor and optimise labour resources across every site and shift. 

Aligning workforce management with business operations 

In manufacturing and logistics, every minute matters. Delayed dispatches, unplanned absenteeism, or overstaffing can quickly erode margins. A modern WFM platform provides real-time insights into workforce data, enabling managers to anticipate and resolve issues before they affect delivery schedules or customer commitments. 

By connecting WFM systems to payroll, HR and operations, operators can monitor labour costs, track overtime patterns and analyse productivity across teams and locations. These insights help manage workloads, ensure compliance with fatigue management and safety standards and maintain consistent service levels even during busy periods like Christmas. 

For example, when a surge in eCommerce demand requires extra warehouse shifts, automated scheduling tools can match employees’ availability and qualifications to operational needs, ensuring that capacity planning is both compliant and cost-effective. 

Enhancing service delivery and customer experience 

Customer expectations for reliability and transparency are higher today than ever before. Missed delivery windows or inconsistent communication can quickly erode trust. A well-integrated WFM system can help prevent these issues by synchronising staffing levels with service demand. 

Predictive analytics integrated into WFM solutions can analyse past patterns to anticipate future workload peaks, allowing managers to organise rosters effectively. This feature not only prevents understaffing but also guarantees labour resources meet contractual obligations and service-level agreements. 

Using real-time workforce data allows logistics companies to demonstrate performance metrics to clients, such as on-time delivery rates and staff utilisation, helping them win tenders and renewals. 

Simplifying compliance and reducing risk 

Regulatory complexity continues to pose a significant challenge in transport and logistics. To mark Safe Work Australia’s National Safe Work Month in October, the National Heavy Vehicle Regulator (NHVR) is currently urging logistics drivers not to risk driving while fatigued, following 5,257 fatigue-related offences nationally last financial year.  

Under the current Fatigue Management regulations governed by the NHVR, logistics businesses face hefty penalties for breaches of modern award obligations. 

Digitising compliance processes significantly reduces manual risk. Workforce management software can automatically track hours, rest breaks and allowances in line with the relevant award, while providing real-time alerts for potential breaches. 

This creates a transparent, auditable record for both internal management and external regulators. It also ensures that employee entitlements are correctly calculated, an area increasingly scrutinised by the Fair Work Ombudsman. 

By embedding compliance into daily workflows, logistics companies can concentrate less on data entry and more on enhancing performance. 

Building resilience in a disrupted market 

Recent global events highlight how swiftly supply chains can be disrupted by severe weather and geopolitical unrest. A digital WFM platform offers businesses the flexibility to adapt to rapid operational changes. 

With access to real-time data on staff availability, qualifications and locations, logistics leaders can quickly redeploy teams between sites or shifts. This flexibility improves operational resilience and helps ensure business continuity during unforeseen events. 

When integrated with transport management or ERP systems, WFM solutions provide a single source of truth for assets, routes, and staff, an essential benefit in a sector where every delay creates ripple effects. 

Supporting workforce wellbeing and retention 

Labour shortages remain a significant concern in the manufacturing and logistics sector. Employee satisfaction now plays a vital role in keeping businesses stable. Transparent, fair, and predictable rosters can help reduce fatigue, improve work-life balance, and decrease staff turnover. 

Mobile-enabled workforce platforms provide employees with visibility and control, allowing them to view rosters, request leave, and swap shifts easily. These small changes result in significant improvements in engagement and retention. 

Workforce data can also help HR and operations teams identify trends such as absenteeism or high overtime, which may indicate burnout or dissatisfaction, enabling early intervention and support. 

Data as a strategic asset 

Every workforce interaction produces valuable data. When analysed correctly, this information can pinpoint where costs can be cut, where productivity can be increased and how service levels can be boosted. For instance, by analysing correlations between roster accuracy and delivery punctuality, logistics leaders can make informed decisions about staffing strategies and route planning.  

Over time, these insights lead to stronger customer relationships, reduced operating costs, and a lasting competitive edge. 

The road ahead 

In a sector marked by constant change, WFM should be viewed as an operational command centre rather than just an administrative task. By integrating these platforms into broader business systems, logistics companies can turn compliance obligations into strategic advantages. 

Digitisation not only streamlines regulation but also offers the visibility and flexibility needed to thrive in today’s competitive manufacturing and logistics industries. Those who see WFM as a strategic asset rather than a burden will be best placed to deliver consistently, competitively and confidently in the years ahead.