Integrated Indirect Labor Tracking for Warehouses and 3PLs

Integrated Indirect Labor Tracking for Warehouses and 3PLs

Integrated Indirect Labor Tracking for Warehouses and 3PLs

Warehouses have hundreds, if not thousands, of processes and tasks. Engineered Labor Standards are critical for increasing performance but can be costly if focused on the wrong processes. Takt enables engineering and continuous improvement teams with the tools they need to build and maintain better-engineered labor standards.

CarParts.com

How CarParts.com Increased Labor Productivity by 18%

As a fast-growing eCommerce fulfillment operation, CarParts.com needed better visibility into labor performance and a more scalable way to manage workforce productivity. By deploying Takt, the team unified labor tracking, real-time performance visibility, and workforce planning into a single platform integrated with their WMS, time tracking, and automation systems. With real-time insights and data-driven coaching, managers were able to identify inefficiencies, optimize labor allocation, and improve performance across both individual employees and teams.

ODW Logistics

Kenco

CarParts.com

CarParts.com Labor Management System Software

18%

Increase in labor productivity

4x ROI

From improved labor efficiency and optimization

ODW Logistics

How ODW Logistics Improved Workforce Performance by 29%

ODW Logistics struggled with limited visibility into labor performance and outdated labor standards that made it difficult to coach employees and improve productivity. After deploying Takt, ODW unified data from WMS, labor systems, and automation into a single real-time platform—giving managers immediate insight into workforce performance. With real-time coaching tools, dynamic labor standards, and actionable analytics, ODW transformed how teams operate on the floor.

ODW Logistics

Kenco

CarParts.com

ODW Logistics Labor Management System Software

18h

Increase in workforce productivity

39%

Increase in employee retention

CarParts.com

How CarParts.com Increased Labor Productivity by 18%

As a fast-growing eCommerce fulfillment operation, CarParts.com needed better visibility into labor performance and a more scalable way to manage workforce productivity. By deploying Takt, the team unified labor tracking, real-time performance visibility, and workforce planning into a single platform integrated with their WMS, time tracking, and automation systems. With real-time insights and data-driven coaching, managers were able to identify inefficiencies, optimize labor allocation, and improve performance across both individual employees and teams.

ODW Logistics

Kenco

CarParts.com

CarParts.com Labor Management System Software

18%

Increase in labor productivity

4x ROI

From improved labor efficiency and optimization

Trusted by leading Third Party Logistics Providers (3PLs), Retailers, and E-Commerce Companies

Trusted by leading Third Party Logistics Providers (3PLs), Retailers, and E-Commerce Companies

All Points
Altitude Sports
Army and Air Force Exchange Service (AAFES)
CarParts.com
Flexport
Kenco

Structured. Simple. Accurate.

Flexible Kiosk Configuration for Indirect Labor Tracking

Categorize Time by Process

Configure kiosk options by process so employees select indirect categories like kitting, training, downtime, or maintenance. Standardized categories improve labor reporting and cost visibility.

Reusable Activity Templates

Create templates with predefined settings for common indirect activities. Standardize duration rules, quantity tracking, and approval workflows to ensure consistent data capture across facilities.

Rule-Based Check-Ins

Automatically trigger indirect labor tracking based on timecard events or function changes. Reduce manual entry and ensure indirect time is captured accurately inside your labor management system.

QR Code Enabled Check-Ins

Generate QR codes for specific indirect functions such as training rooms, maintenance areas, or project zones. Employees scan using the Takt handheld app to instantly log structured indirect labor.

Live. Integrated. Governed.

Real-Time Indirect Labor Visibility and System Integration

Real-Time Indirect Labor Visibility

View indirect labor activity live across your warehouse and 3PL operations. Monitor support work, downtime, and VAS as it happens to maintain accurate labor management reporting.

Automatic WMS & Timecard Updates

Indirect labor records automatically update when new WMS transactions or timecard data are received. Maintain data accuracy without manual reconciliation.

No Administrative Burden

Eliminate spreadsheets and manual adjustments. Managers gain structured indirect labor tracking without added data entry or oversight work.

Complete Audit History

Maintain a full audit trail of indirect labor entries, edits, and approvals. Support compliance, governance, and transparent labor management practices.

EASY DEPLOYMENT

Deploy Indirect Labor Tracking Across Your Existing Warehouse Hardware and Automation

Takt integrates with the devices and automation already running in your warehouse. Deploy the Kiosk through Android-based Zebra and Honeywell scanners, shared tablets, fixed workstations, or goods-to-person automation stations—without disrupting existing supply chain workflows or hardware investments.

Zebra & Honeywell Scanner Deployment

Run the Takt Handheld application directly on Android-based Zebra and Honeywell scanners. Capture indirect labor in real time without adding new devices to your warehouse floor.

Tablet-Based Kiosk Mode

Deploy the Takt Kiosk application on shared Android tablets positioned in work areas. Enable fast, structured check-ins for training, downtime, kitting, or project work.

Shared Workstation Access

Install Takt on shared warehouse PCs and workstations to support indirect labor tracking in packing stations, staging areas, or supervisory desks.

Integrated with Automation Workcells

Track work surrounding Autostore, Ocado, Knapp, and other goods-to-person systems. Capture indirect tasks around automation to improve throughput and labor allocation accuracy.

indirect labor

Common Examples of Indirect Labor in the Warehouse

Common Examples of Indirect Labor in the Warehouse

Common Examples of Indirect Labor in the Warehouse

Indirect labor spans critical support work that keeps warehouse and 3PL operations running. While not tied to a specific pick or shipment, these activities consume significant labor hours and must be structured inside your labor management system.

Kitting & Value-Added Services (VAS)

Assembly, labeling, relabeling, bundling, customization, and retail prep all fall outside standard picking metrics. Tracking both time and quantity ensures value-added services are visible and accurately costed.

Training & Onboarding Time

New hire onboarding, cross-training, safety refreshers, and SOP instruction consume labor hours. Without structured tracking, training time is buried in direct productivity reporting.

Downtime & Equipment Delays

Waiting on replenishment, system outages, equipment failure, or congestion creates unproductive time. Capturing downtime reveals operational bottlenecks and protects productivity metrics.

Inventory Control & Support Work

Cycle counts, slot audits, staging, replenishment prep, and quality inspections support direct work but are rarely engineered. Structured tracking improves labor planning accuracy.

What Is Indirect Labor in Warehouse and 3PL Operations?

Indirect labor includes all paid warehouse time not directly tied to a measurable unit of output. In most supply chain operations, indirect work represents 20–30% of total labor hours. Without structured tracking inside a labor management system, this time becomes invisible, distorting productivity, cost-to-serve, and planning accuracy.

Indirect Labor

Indirect vs. Direct Labor in the Warehouse

Direct labor is tied to measurable output such as picks, cartons, or pallets moved. Indirect labor supports those activities but is not credited to a specific transaction. This includes kitting, meetings, maintenance, supervision, staging, and equipment checks. Both are essential to warehouse operations, but only direct labor is typically governed by engineered labor standards in most labor management systems.

Categorizing

Why Indirect Labor Is Often Misclassified

Many warehouses group indirect time into broad pay codes or leave it uncaptured altogether. This inflates direct productivity metrics while masking true support costs. Without structured indirect labor tracking, supply chain leaders make planning and staffing decisions based on incomplete data, reducing confidence in labor management reporting.

The 20–30% Visibility Gap

Operational studies consistently show that 20–30% of total warehouse labor hours fall into indirect categories. In 3PL environments with kitting, customization, and value-added services, the percentage can be significantly higher. Without real-time visibility inside a labor management system, this portion of labor spend remains unmanaged and unoptimized.

Examples of Indirect Labor

Kitting, VAS, training, downtime, safety meetings, maintenance, rework.

Why It Matters

Untracked indirect time distorts productivity, planning accuracy, and margin visibility.

FAQ's

What is indirect labor in a warehouse?

What is the difference between direct and indirect labor?

How do you track indirect labor in a warehouse?

What percentage of warehouse labor is indirect?

Why is indirect labor important for 3PL operations?

Can a labor management system track downtime?

How does indirect labor affect productivity reporting?

How do you track kitting and value-added services labor?

Can a labor management system track downtime?

"Takt’s advanced platform equips ODW teams with real-time productivity insights, enabling more effective coaching, streamlined workflows, and a happier, more engaged workforce. With tools that drive efficiency, reduce costs, and enhance service quality, ODW can deliver faster turnaround times and a more reliable supply chain."

ODW Logistics