Workforce 4.0 – a new dimension in flexibility

Today, companies have to be able to manage complex processes and structures flexibly and effectively. That is the only way for them to survive in competitive markets over the long term.

Andreas F.J. Obereder | CEO and Founder, ATOSS

Can you cite some examples?

Take GlobalFoundries, one of the world’s key players in the very competitive semiconductor market with its ultra modern Fab 1 in Dresden. As a contract manufacturer, the company has to react quickly and cost optimized to the demands of the market and its customers, and to do so it manages its complex shift system with our enterprise solution. Our customer, ThyssenKrupp Rasselstein, is also banking on make-to-order production. That requires an agile organization and flexible, costeffective workforce management. And this is where we come in. The example of the automotive industry also shows impressively how you can create enormous scope for maneuver for good and bad times using a whole set of flexibilization tools.

The flexibilization of flexibilization, so-to-speak?

It’s not just about working time. That would be too short-sighted. In the future, it will be necessary to take a much more holistic approach to people in the planning process, involving them all the way along the chain of services. The aim is to achieve total alignment of staff deployment with company demands and requirements. And there is a lot still to be done – not just in the manufacturing industry.

Generally speaking, the pace of business is increasingly accelerating. Isn’t workforce management just a side issue?

Digitization is bringing fundamental change to society and economy. New business models and opportunities for growth are emerging. No branch of industry is safe anymore from being turned upside down or rendered superfluous. Examples such as Uber or Airbnb show clearly that no sector is immune from having its existence thrown into question. Heroes of yesterday such as Nokia are living proof of how quickly stars can fade. The only defense is a company’s basic ability to adapt quickly and counter trends with highly flexible organization. Workforce management, as we understand it, is a cornerstone of that process.

How do you see the change process in retail, another core sector for your company? 

The internet is creating a hugely competitive environment. Yes, technology and the pace of innovation associated with it have also led to massive changes in the retail trade. Online or in shops? At the end of the day, it’s the consumers who decide and they no longer distinguish between channels; instead they use different platforms as the fancy takes them or even take several routes to the same retailer. The retail trade has had to and still has to adapt to this situation. Many of our customers such as BASLER, Douglas, or HORNBACH are banking on a multichannel strategy. Breuninger, engelhorn or Kastner & Öhler, to cite just a few examples of customers, are creating special shopping experiences in exclusive surroundings to differentiate themselves from their competition. In any case, it’s important to offer an optimum level of service to go with the business model – whether it’s on the shop floor or in logistics. We support numerous retail companies, such as Deerberg, dm-drogerie markt, EDEKA, Gebr. Heinemann, Peter Hahn or Walz, in the logistics area in achieving a customer and service-oriented workforce mangement matched by efficient costs.

But it’s surely not enough to just see things from a cost perspective?

That’s right. It’s much more about establishing the best possible synchronization of requirements and staff resources thus offering spot-on service on the retail floorspace. And that is still anything but a matter of course. In our projects, we often experience that workforce scheduling is insufficient. It is not uncommon to find over- and under-capacity of up to 30 percent on several days of the week, even with well-structured, successful companies. That has a direct effect on service level, sales and employee productivity. Our projects show that it is possible to increase EBIT by 5 percent and more by introducing better demand forecasts and a more flexible workforce management. 

Retail companies traditionally operate with small margins. Can the cost of a workforce management project pay off?

Definitely. We have many customers in the highly price-sensitive retail food trade, among them ALDI Süd, coop, MPREIS as well as numerous regional companies and distribution channels of the EDEKA Group. Throughout EDEKA alone more than 90,000 people are currently being managed by our solutions. Last year, Hofer also opted for ATOSSWorkforce Management. Believe me, in the retail trade they do intensive cost-benefit analyses before purchasing! 

Is the situation the same in other sectors?

Around 100 potential analyses conducted in the last two years show clearly where potential benefits in the retail trade, healthcare, service industries, logistics and production can be harnessed. Of course, the intensity with which the solution is implemented also plays a part. But just to illustrate the dimensions involved: for a company with 1,000 employees, the average potential benefit per year is a seven-digit number. The return of investment is reached within a very short time period. 

What exactly do your solutions achieve?

Our highly specialized algorithms enable the pinpoint precision forecasting of personnel requirements. And the generation of a demand- and costoptimized duty plan at the push of a button, factoring in all the relevant criteria. In retailing, for example, we can forecast customer footfall with a precision of +/-2 percent. Today, most companies are miles away from achieving such a planning quality. 
 

But software alone is not enough ...

That is correct – and that is why we have consistently expanded our consulting capacities. The full potential of workforce management only unfolds through the combination of highly intelligent software solutions and permanent adjustments in company structures and sequence organization. The unification of processes across areas and divisions increases efficiency, planning quality and benchmarking options throughout the entire company. We provide support in these challenges. Thanks to our extensive cross-sector know-how of many years’ standing we are able to very rapidly identify weak points and optimization potential in existing processes. Today, companies have to be able to manage complex processes and structures flexibly and effectively. That is the only way for them to survive for long in a competitive market.

Talking about flexible structures, there is a lot of discussion about democracy of companies in Germany at present. 

And luckily the focus is on business relevant effects and not on politics. The desire for more Participation and influence is indeed gaining significance in business and society. Modern technology makes the opportunity to join in the conversation and to “like” things much easier. Take the subject of duty scheduling, for example. In many organizations, in hospitals, for example, this repeatedly gives rise to conflict. Why? Because with traditional planning methods, injustice is simply built into the system and personal issues and preferences always play a role. Systems where employees can contribute to organize their duty plans or easily swap shifts as part of a self-service scheme, ensure greater room for maneuver, transparency, scheduling fairness and thereby job satisfaction.