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In the ever-evolving landscape of supply chain management, labor management systems have emerged as vital tools for companies seeking cost efficiencies and improved performance. At the forefront of this movement is Dan Keto, the president and chief technology officer of Easy Metrics, a company specializing in labor management software. With a distinguished background as a graduate of the U.S. Naval Academy and an executive education from Harvard Business School, Keto has leveraged his experience in both military and commercial sectors to innovate in logistics and labor management.

Keto's career began in the U.S. Navy, where he served with the National Security Agency as a Russian linguist and cryptologic officer. This experience instilled in him a strong emphasis on data security—an approach that would later shape the technology behind Easy Metrics. After leaving the Navy, Keto co-founded Integrated Management Systems, a fourth-party logistics provider, in 1996. Following its acquisition in 2013, he went on to establish Easy Metrics, which focuses on providing effective labor management solutions.

According to Keto, the current market for labor management systems reflects a shift from a top-line growth strategy, which was common during the pandemic, to a focus on bottom-line growth. This shift, largely influenced by increased capital expenditures during COVID-19 and low-interest rates, necessitates a keen focus on cost optimization. Keto notes, “The overall supply chain market has shifted... to one of bottom-line growth focus." He emphasizes that while automation in warehouses is a growing trend, the human element remains crucial. "Labor in the warehouse will still be instrumental," he says, underscoring the importance of labor management in achieving operational efficiency.

One of the significant challenges companies face today is the tightening labor market, exacerbated by current immigration policies. Keto observes that this shift has dramatically changed workforce dynamics, stating, “Thirty years ago, most companies were quicker to terminate employees because you could replace them with a phone call to a temp staffing firm.” Now, organizations are more inclined to invest in their employees, focusing on training and coaching to improve retention. Keto advocates for a data-driven approach to identify training opportunities, arguing this long-term strategy is more beneficial than dealing with high employee turnover rates. He believes that incorporating artificial intelligence tools can facilitate this process for managers.

The advantages of cloud-based services also play a critical role in labor management. Keto explains that such services significantly reduce upfront costs associated with hardware systems while adopting a pay-for-what-you-use model. “The cost to try to replicate what a large Amazon or Google data center can do is cost-prohibitive for most,” he states. In fact, Keto predicts that within the next decade, the landscape will shift dramatically toward cloud-native solutions, rendering many on-premise applications obsolete.

Keto and his team at Easy Metrics are strong advocates for innovative employee engagement strategies such as pay-for-performance and gamification. He recalls a success story from his previous 4PL operations, where a well-designed incentive system led to a remarkable turnaround: “We took the warehouse from last in the network to first in the network within six months and more than doubled productivity.” He cautions, however, that the design of these programs is critical; poorly conceived systems can lead to unintended consequences that harm morale and productivity.

Labor management systems are not merely about technology; they are comprehensive business practices that can lead to substantial improvements in a company's operations. Keto emphasizes that integrating labor management into standard operating procedures (SOPs) and ensuring full management engagement can yield impressive returns, often reducing operating costs by 10% to 20%.

As technology continues to advance, the role of labor management is set to evolve further. Keto envisions labor management systems becoming integral to warehouse performance management. He notes that sophisticated customers often rely on labor management system data to diagnose engineering and process problems, revealing valuable insights into workflows. “Modern systems like Easy Metrics are able to ingest and merge all of those data sets into a unified data model,” he explains, enabling businesses to layer in artificial intelligence and machine learning for more effective decision-making.

The trajectory of labor management reflects broader trends in technology and workforce dynamics. As companies continue to navigate challenges in labor supply and seek efficiencies, the insights from leaders like Dan Keto will be essential. By prioritizing data-driven strategies and investing in their workforce, organizations can not only enhance their operational performance but also foster a more engaged and productive labor force.