Headwater Technology Solutions’ Delfour Supply Chain Division to Market Productivity Consultant LxLi’s Product, Professional Services to 3PL Providers

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Precise standards for productivity are rare in the Third Party Logistics field, where the use of averages yields only marginal results. Conversely, LxLi's Engineered Labor Standards approach, using its FLEX dls productivity calculatio engine, applies precision to workflow management and staffing. Under this partnership, these services will be marketed into the 3PL community by Headwater Technology Solutions, Inc.

Headwater Technology Solutions, Inc., has formed a strategic partnership with LxLi, Toronto, to market the partner company’s productivity consulting services and its FLEX dls (discrete labor standards) productivity calculation engine in conjunction with the SmartEnterprise 2 (SE 2) third party logistics management system, it was announced today by Headwater Senior Vice President Joe E. Couto and LxLi Senior Vice President Yves Belanger.

LxLi is a 20-year old consulting firm with offices in Toronto, Montreal and Atlanta, with clients in Canada, the United States and several European countries.

According to Couto, LxLi will apply scientific time management concepts along with work measurement and methods engineering to current and/or projected processes and their related labor requirements at new and existing SmartEnterprise 2 installations. It will process the obtained data through the FLEX dls module to derive a set of discrete Engineered Labor Standards (ELS) that can be used for a variety of purposes, ranging from the creation of precise staffing and workflow practices to arbitration defense.

“We know that even under the best of circumstances, direct labor costs amount to 50 percent or more of the total operating costs of a third party logistics provider,” Couto said. “We also know that normally, 15-25 percent of the hours worked are unproductive. By bringing a scientific approach to the development or modification of processes and the allocation of labor, 3PL operators can recapture significant resources that are now being lost to inefficiency. The LxLi methodology can refine ELS standards down to individual task and employee levels.”

LxLi professional services will be presented as part of the SE 2 offering, with LxLi providing pre-sales support, Couto said. Its services will address six specific client requirements:

  •     Assessment of client/potential clients’ facilities and requirements
  •     Review of business processes
  •     Identification of business process improvement opportunities
  •     Development of discrete engineered labor standards
  •     Implementation of Engineered Labor Standards
  •     Post-installation facilities audits

According to Belanger, the application of work measurement procedures to labor management in the labor-intensive logistics field has been mostly confined to the food industry. The proven value of labor management in food distribution centers, manufacturing and retail operations is now broadening its outreach to the entire logistics field.

“In most cases, operators rely on averages but these are unsatisfactory,” he said. “In fact, you can’t manage what you can’t measure. The Headwater-LxLi approach is to develop precise information that allows operators to control labor costs by optimizing processes, managing the performance of each employee and creating accurate projections on the number and costs of additional employees as the business grows incrementally, customer-by-customer.”

Couto noted that after mechanical and material handling solutions have been implemented, conservation of labor represents one of the last ways in which to reduce costs.

“Additionally,” he said, “Engineered Labor Standards developed using this process have high credibility with international unions, which is something that can be of major value to companies in the logistics field. They are respected by management and labor alike.”


Headwater Technology Solutions Inc. is a software development and professional services firm that provides logistics management consulting and solutions, transportation management solutions, and an array of consulting and implementation services. Headwater’s Delfour SmartEnterprise 2 and Freight Logix 3PL/4PL/corporate logistics and transportation solutions enable seamless supply chain planning and execution that leads to smarter and more profitable management of goods as they move through the supply chain. Its supply chain consultation and implementation services focus on the Oracle, SAP and Microsoft platforms, with proficiency in warehouse and transportation management systems, RF and RFID technologies, and materials management systems (MMS). Headwater maintains corporate headquarters in the Toronto suburb of Markham with regional offices in Oakville and Atlanta, marketing its services and solutions internationally. For information, call 866 306 0999, email info@headwaterinc.com or visit http://www.headwaterinc.com.


Tina Langridge

866 306 0999


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