Why Labor Productivity Gains Don’t Translate to Cost-to-Serve Results

Fix Your Warehouse Data Before You Invest in AI

See what Easy Metrics can do for you: https://www.easymetrics.com/demo Follow us on LinkedIn: https://www.linkedin.com/company/easy-metrics-inc- In this episode of The Performance Driven Warehouse, host Dan Keto speaks with Dr. Muddassir Ahmed, globally recognized supply chain digitalization expert and founder of SCM Dojo, about why most warehouse AI initiatives fail before they start.  Instead of chasing automation hype, they focus on the foundational work required to make AI deliver real ROI: standardized processes, unified data models, and structured system design. The conversation breaks down how fragmented WMS taxonomies, poor data architecture, and overreliance on LLMs create costly inefficiencies.  For operators under pressure to adopt AI, this episode offers a practical lens on where to invest first, and how to turn data complexity into a measurable operational advantage. What You’ll Learn * Why most supply chain professionals lack the digital skills needed today * Why standardization must come before any digitalization effort * Why agility, resilience, and cost cannot be optimized at the same time * How LLMs differ from agent-based systems in real operations * How to build role-specific AI agents using structured investigations * How to control AI query costs and prevent runaway expenses * Using a three-lens framework where AI will disrupt supply chains  * Why AI is consolidating procurement roles * How Amazon’s model signals the future of logistics operations * Why self-learning AI tools is now a core competency * How to stay competitive in an AI-driven supply chain world  Dr. Muddassir Ahmed is the Founder and CEO of SCMDOJO and a globally recognized expert in supply chain digitalization, strategy, and capability building. With nearly two decades of international leadership experience across organizations such as Bridgestone, Eaton, Doncasters, and Volvo Cars, he has worked across the UK, Europe, the Middle East, and Asia, driving end-to-end supply chain transformation. He is widely known for his focus on making digital transformation practical, while emphasizing the role of standardized data, structured processes, and measurable ROI in successful AI adoption. Through SCMDOJO, he has built one of the industry’s largest learning platforms, reaching thousands of professionals and organizations with training, tools, and best practices. Today, he advises companies on how to build supply chain capabilities, implement AI-driven systems, and align digital initiatives with real operational and financial outcomes. The Performance-Driven Warehouse is handcrafted by our friends over at: fame.so [https://www.fame.so/?utm_medium=podcast&utm_source=bcast&utm_campaign=masters-of-community-with-david-spinks?utm_medium=podcast&utm_source=bcast&utm_campaign=fame-client]  Previous guests include: Dwight Klappich & Lora Cecere Check out our three most downloaded episodes: 1. The Hidden Cost of Fragmented Warehouse Data, with Dwight Klappich [https://podcasts.fame.so/e/0njyxpm8-hidden-cost-of-fragmented-warehouse] 2. Why Productivity Fails Without Profit Visibility, with Dwight Klappich [https://podcasts.fame.so/e/v85j9y7n-why-productivity-fails] 3. Cost to Serve: The Hidden Lever Behind Profitable Growth [https://podcasts.fame.so/e/q80v4xl8-cost-to-serve]

AI Hype vs. Warehouse ROI — A Reality Check with Dwight Klappich

See what Easy Metrics can do for you: https://www.easymetrics.com/demo Follow us on LinkedIn: https://www.linkedin.com/company/easy-metrics-inc- In this episode of The Performance Driven Warehouse, Dan Keto continues his conversation with Former Gartner Fellow and Principal at DK Advascent,  Dwight Klappich, on the real role of AI in warehouse operations and supply chain execution. .  Many organizations feel pressure to adopt AI tools before clearly defining the operational problems they need to solve..  Dan and Dwight challenge this approach and explain why the most valuable AI applications start with workflow visibility, labor analytics, and cost transparency, and why emerging technologies like humanoid robotics remain decades away from meaningfully displacing warehouse labor. They also explore how agentic AI may significantly accelerate tasks such as WMS configuration and operational analysis. What You’ll Learn: * Why "AI as a toolbox" leads to better ROI than chasing new technology trends * How to escape the AI hype cycle and focus on measurable ROI  * Why operational context must validate algorithmic recommendations * Why WMS task interleaving is a prime candidate for machine learning optimization  * How missing time exposes millions in hidden labor costs * Where near-term AI value exists today: labor management, slotting, and travel path optimization * Why hiring data scientists alone rarely solves warehouse operations problems * The realistic timeline for humanoid robotics in distribution operations * How agentic AI could reduce WMS implementation timelines by 80–90% * Why predictive constraint management improves operational decision-making * A risk-tolerance framework for deciding when to invest in emerging AI capabilities Dwight Klappich [https://www.linkedin.com/in/dwight-klappich-452691] is Principal at DK Advascent and a former Research Vice President and Fellow at Gartner, where he spent 25 years advising global enterprises on supply chain, logistics, and fulfillment technology. He is widely regarded as one of the industry’s leading authorities on warehouse operations, intralogistics, and automation strategy. During his tenure at Gartner, Dwight shaped how executives evaluate and invest in logistics technology, including launching Gartner’s intralogistics smart robotics research coverage. His work has influenced how organizations think about automation not as a technology project, but as an operational and financial decision tied to process design, labor economics, and service performance. Today, through DK Advascen, Dwight advises companies on how to align warehouse processes, labor strategies, and automation investments to drive measurable business outcomes. He is particularly known for helping operations leaders avoid costly automation mistakes by grounding decisions in data, workflow reality, and economic impact. https://www.linkedin.com/in/dwight-klappich-452691/ The Performance-Driven Warehouse is handcrafted by our friends over at: fame.so [https://www.fame.so/?utm_medium=podcast&utm_source=bcast&utm_campaign=masters-of-community-with-david-spinks?utm_medium=podcast&utm_source=bcast&utm_campaign=fame-client]  Previous guests include: Dwight Klappich & Lora Cecere Check out our three most downloaded episodes: 1. The Hidden Cost of Fragmented Warehouse Data, with Dwight Klappich [https://podcasts.fame.so/e/0njyxpm8-hidden-cost-of-fragmented-warehouse] 2. Why Productivity Fails Without Profit Visibility, with Dwight Klappich [https://podcasts.fame.so/e/v85j9y7n-why-productivity-fails] 3. Cost to Serve: The Hidden Lever Behind Profitable Growth [https://podcasts.fame.so/e/q80v4xl8-cost-to-serve]

Cost to Serve: The Hidden Lever Behind Profitable Growth

See what Easy Metrics can do for you: https://www.easymetrics.com/demo Follow us on LinkedIn: https://www.linkedin.com/company/easy-metrics-inc- In this episode of The Performance Driven Warehouse, Dan Keto continues his conversation with Lora Cecere host of the Supply Chain Insights podcast [https://www.youtube.com/@supplychaininsights4906] and Founder of Supply Chain Insights, to challenge how warehouse leaders think about cost, pricing, and customer profitability. They explore why “a case is not a case,” and how product mix complexity quietly erodes margins when pricing models lack granular cost-to-serve data.  Lora explains how activity-based costing at the customer and SKU level enables faster decision-making, stronger alignment between sales and operations, and more disciplined customer management. This discussion goes beyond warehouse labor management and into strategic pricing, supply chain profitability, and disciplined customer management. If you're looking to improve warehouse margins, strengthen 3PL pricing models, or implement cost-to-serve analysis in your supply chain, this episode provides a clear framework. What You’ll Learn: * How to break the warehouse visibility black hole * Why "a case is not a case," and how this unlocks 15-20% margin recovery * The real value of cost-to-serve data beyond labor optimization * How to align marketing, sales, and supply chain before campaigns tank your margins * The discipline required for customer centricity that actually works * How to position yourself as a strategic partner, not a cost center Lora Cecere is the Founder of Supply Chain Insights, a research firm focused on advancing thought leadership in supply chain excellence. With more than 35 years of experience spanning practitioner, software executive, and industry analyst roles, she brings a rare end-to-end perspective to enterprise strategy. Lora is the author of the blog Supply Chain Shaman and co-author of Bricks Matter and Metrics That Matter. A former analyst with Gartner and AMR Research, she now advises leaders on digital transformation, predictive analytics, demand shaping, and market-driven value networks. The Performance-Driven Warehouse is handcrafted by our friends over at: fame.so [https://www.fame.so/?utm_medium=podcast&utm_source=bcast&utm_campaign=masters-of-community-with-david-spinks?utm_medium=podcast&utm_source=bcast&utm_campaign=fame-client]  Previous guests include: Dwight Klappich & Lora Cecere Check out our three most downloaded episodes: 1. The Hidden Cost of Fragmented Warehouse Data, with Dwight Klappich [https://podcasts.fame.so/e/0njyxpm8-hidden-cost-of-fragmented-warehouse] 2. Why Productivity Fails Without Profit Visibility, with Dwight Klappich [https://podcasts.fame.so/e/v85j9y7n-why-productivity-fails] 3. Cost to Serve: The Hidden Lever Behind Profitable Growth [https://podcasts.fame.so/e/q80v4xl8-cost-to-serve]

Why Labor Productivity Gains Don’t Translate to Cost-to-Serve Results

See what Easy Metrics can do for you: https://www.easymetrics.com/demo Follow us on LinkedIn: https://www.linkedin.com/company/easy-metrics-inc- What if the labor productivity gains you're measuring aren't actually translating to cost savings?  In this episode, host Dan Keto, Co-founder and President of EasyMetrics, slips into the guest chair and chats with Lora Cecere to explore why you should unify your warehouse data across multiple WMS platforms and third-party operations, how you can implement true activity-based costing to track cost-to-serve at the transaction level, and the key strategies to leverage labor management data as your foundation for AI-driven optimization. Whether you're wrestling with SKU variability, fragmented automation data, or the challenge of calculating true profitability by customer and workflow, this conversation is packed with actionable insights, from 30-day time-to-value implementations to identifying hidden inefficiencies that can immediately drive 5% cost reductions. Tune in to uncover why a unified data model isn't just a nice-to-have, but the critical foundation that separates operations leaders who are making smart, ROI-backed decisions from those throwing money at technology with no results. What You’ll Learn: * Why labor productivity metrics alone fail to explain cost-to-serve * How SKU, order, and workflow variability distort traditional warehouse cost models * What Warehouse Performance Management enables that traditional LMS reporting cannot * Why unified labor and operational data is critical in multi-WMS and 3PL environments * How activity-based costing supports better operational and financial alignment * Why a unified data foundation must come before automation or AI initiatives Lora Cecere is the host of the Supply Chain Insights podcast [https://www.youtube.com/@supplychaininsights4906] and Founder of Supply Chain Insights, a research and advisory firm specializing in supply chain performance optimization and operational excellence. With over 35 years of industry experience, including nine years as an industry analyst at Gartner, AMR Research, and Altimeter Group, plus 15 years building supply chain software and 20 years as a practitioner at companies including Procter & Gamble, Kraft, and Clorox. She brings unmatched depth to warehouse operations and cost-to-serve modeling.  The Performance-Driven Warehouse is handcrafted by our friends over at: fame.so [https://www.fame.so/?utm_medium=podcast&utm_source=bcast&utm_campaign=masters-of-community-with-david-spinks?utm_medium=podcast&utm_source=bcast&utm_campaign=fame-client]  Previous guests include: Dwight Klappich & Lora Cecere Check out our three most downloaded episodes: 1. The Hidden Cost of Fragmented Warehouse Data, with Dwight Klappich [https://podcasts.fame.so/e/0njyxpm8-hidden-cost-of-fragmented-warehouse] 2. Why Productivity Fails Without Profit Visibility, with Dwight Klappich [https://podcasts.fame.so/e/v85j9y7n-why-productivity-fails] 3. Cost to Serve: The Hidden Lever Behind Profitable Growth [https://podcasts.fame.so/e/q80v4xl8-cost-to-serve]

Why Productivity Fails Without Profit Visibility, with Dwight Klappich

See what Easy Metrics can do for you: https://www.easymetrics.com/demo Follow us on LinkedIn: https://www.linkedin.com/company/easy-metrics-inc- In part 2 of The Performance-Driven Warehouse, Dan Keto continues the conversation with Dwight Klappich, former Gartner Fellow and Principal at DK Advascent, with a sharper focus on execution. The discussion centers on why most warehouse leaders struggle to translate productivity metrics into real profitability—and how unified warehouse performance management closes that gap. Dwight breaks down how engineered assumptions, siloed reports, and inconsistent data lead teams to optimize the wrong problems. He explains why monetizing labor costs exposes waste hiding in plain sight, why consistency across facilities is required to scale best practices, and how poor data leads to misguided automation investments. For operations executives evaluating labor strategies, automation, or network-wide improvement initiatives, this episode delivers a pragmatic, financially grounded playbook for making better decisions with real business impact. What You’ll Learn: * Why standardizing metrics across your network is harder than it looks * How to stop blaming labor when the real issue is process, layout, or visibility * The monetization advantage: why efficiency means nothing without attached dollars * How to leverage top-performing sites as blueprints across your entire network * Why lifting the middle of the workforce drives more value than replacing people * How to avoid automating broken processes by using real operational cost data Dwight Klappich, retired Research Vice President and Fellow, is a 25-year veteran of Gartner Inc. Mr. Klappich is a leading authority on supply chain technology, most notably in logistics and fulfillment. With decades of insight into emerging technologies and logistics innovation, Dwight has played a pivotal role in shaping industry discourse and guiding enterprises through digital transformation in logistics, warehousing, and fulfillment operations. His thought leadership continues to influence automation strategies across global supply chains. Dwight also launched Gartner’s intralogistics smart robot research coverage and continues to be a leading authority on how logistics operations can exploit smart robots to support business transformation. The Performance-Driven Warehouse is handcrafted by our friends over at: fame.so [https://www.fame.so/?utm_medium=podcast&utm_source=bcast&utm_campaign=masters-of-community-with-david-spinks?utm_medium=podcast&utm_source=bcast&utm_campaign=fame-client]  Previous guests include: Dwight Klappich & Lora Cecere Check out our three most downloaded episodes: 1. The Hidden Cost of Fragmented Warehouse Data, with Dwight Klappich [https://podcasts.fame.so/e/0njyxpm8-hidden-cost-of-fragmented-warehouse] 2. Why Productivity Fails Without Profit Visibility, with Dwight Klappich [https://podcasts.fame.so/e/v85j9y7n-why-productivity-fails] 3. Cost to Serve: The Hidden Lever Behind Profitable Growth [https://podcasts.fame.so/e/q80v4xl8-cost-to-serve]