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What Are The Benefits of Demand-Based Scheduling?

Demand-based scheduling is a method of allocating resources to tasks based on their priority and demand. It is often used in situations where the demand for a service or product varies over time, such as transportation, health care, manufacturing, etc. Read more.
Edward Bell November 8, 202310 min read
What Are The Benefits of Demand-Based Scheduling?

What Are The Benefits of Demand-Based Scheduling?

Demand-based workforce scheduling is increasingly becoming the cornerstone of efficient and cost-effective business operations. When it comes to effective  demand planning, the ancient adage, “time is money”, resonates louder than ever. Many companies see the vast potential of aligning their workforce management strategies with real-time market demand.

After all, ensuring your business is staffed adequately during high and low demand intervals is not just smart—it’s essential. Let’s dive into the benefits of demand-based scheduling.

What is Demand-Based Scheduling?

Demand based scheduling is a dynamic approach to scheduling resources and people based on real-time demand data. Instead of creating static schedules, this method continuously adjusts and aligns schedules to meet the fluctuating demand patterns, ensuring your business always has the right number of staff or resources on hand when they are most needed.

To learn more about demand planning, check out this article: What is Demand Planning, and Why Is It Important?

Diving deeper, demand-based workforce scheduling is more than just adjusting the headcount for a shift. It’s an advanced strategy which drafts schedules founded on real-time demand data, culminating in peak workforce management. Rather than relying on historical patterns or mere estimations, this method employs advanced scheduling tools to harness current market insights.

The true strength lies in aligning schedules with real-time market dynamics. This avoids the dual risks of being overstaffed, incurring unnecessary labour costs, or being understaffed, which can result in missed opportunities and unsatisfied customers. But the benefits don’t stop there…

Discover More: Field Service Management 

The Benefits of Demand Based Scheduling

a. Significant Reduction in Operational Costs

Demand-based scheduling allows companies to closely match their staffing needs with real-time customer demand, reducing idle time and overstaffing. When you have just the correct number of employees scheduled—neither too many nor too few—you optimise payroll expenses and meet compliance. This is a game-changer in industries where labour is a significant portion of operational costs.

b. Enhanced Customer Satisfaction

No one likes waiting in long lines or facing out-of-stock situations. By leveraging demand forecasting, businesses ensure that they have enough hands on deck during peak hours and peak seasons. This translates to shorter wait times, better service, and overall higher customer satisfaction. In fact, according to McKinsey, this can be as big as a 10 to 30 percent improvement in customer satisfaction.

c. Improved Employee Morale and Retention

Contrary to what one might assume, employees appreciate schedules based on actual demand data. It means less unpredictability in their work hours, more consistent earnings, and a better work-life balance. Employees who know their schedules well in advance and who feel they're being utilised efficiently often report higher job satisfaction. This not only boosts morale but can significantly reduce turnover rates in sectors notorious for high attrition.

d. Dynamic Adaptability to Market Fluctuations

In a volatile market, static scheduling can be a hindrance. Demand-based scheduling offers the agility to adapt to fluctuating demand swiftly. Whether it's a sudden surge in demand due to a viral product trend, an unexpected drop because of external events, or even weather patterns, businesses can adjust their scheduling decisions in real-time, ensuring they're always a step ahead. Totalmobile’s own Rob Gilbert, Managing Director of Commercial and Utilities, explores seasonal demand planning in Airport Industry Review. Check it out: Smart Scheduling Is Key to Airport Operations

e. Streamlined Workforce Management

Utilising sophisticated scheduling software makes the entire scheduling process more straightforward and accurate. Managers spend less time juggling shift requests or making last-minute adjustments. Instead, they can focus on more strategic tasks, as the software provides actionable insights derived from demand data, labour forecasting, and other essential metrics.

To learn more about how better scheduling can you become an employer of choice, check out this article: Shift Pattern & Rostering: Becoming an Employer of Choice

Demand-Based Scheduling & Compliance

Beyond optimal staffing or cost efficiency, demand-based scheduling plays a pivotal role in ensuring compliance.

Over or under-staffing is more than just a logistical challenge; it can lead to compliance breaches. For instance, understaffing might mean employees working beyond stipulated hours, risking non-compliance with UK maximum working hours regulations. Conversely, over-staffing can result in excess wage payouts, affecting financial compliance. With demand-based scheduling, businesses can create rotas that align perfectly with budgetary constraints, ensuring financial prudence.

Dynamic Scheduling Impact

Demand-based scheduling ensures that staff deployed possess the requisite roles and skills for the tasks at hand. This is crucial in sectors where certification or specific training is mandatory, further aiding compliance adherence.

By reducing compliance risk, businesses not only dodge potential legal repercussions but also enhance their reputations as responsible employers. This method, which leans into accurate forecasting, actively minimises labour costs and maximizes sales and revenue.

The end result? Streamlined operations that are lean, efficient, and above all, compliant. Demand-based scheduling doesn’t just respond to business needs – it anticipates them, creating a harmony between operational demands and compliance requirements.

“It’s about more than just having enough staff; it’s about having the right staff”.


Simon Karios, Principle Consultant, Totalmobile

Common Mistakes (& How To Avoid Them)

As with any strategy or tool, demand-based scheduling has its challenges. However, being aware of these pitfalls and understanding how to avoid them can set you on the path to success.

a. Over-reliance on Historical Data

While past demand data is valuable, there are other metrics to consider. Markets change, and so do consumer habits. Solely depending on historical data may cause you to miss out on newer trends.

Expert Tip: Complement historical data with real-time market insights and stay updated with industry news to forecast demand better.

b. Neglecting Employee Preferences

Demand-driven scheduling is about optimising workforce management but should never be at the cost of employee well-being. Ignoring their preferences can lead to dissatisfaction and high turnover.

Expert Tip: Incorporate employee availability and preferences in your scheduling decisions. Keeping employees engaged at every stage of new working practices is vital. Read this article to learn why: The Role of Staff Engagement

c. Lack of Flexibility

A rigid scheduling process can be detrimental, mainly when unexpected changes in customer demand occur. This can lead to either overstaffing or understaffing.

Expert Tip: Make use of workforce scheduling software that allows quick modifications and has features to adjust to fluctuating demand.

d. Ignoring feedback

Both employees and customers can provide invaluable feedback about your scheduling process. Not listening can result in inefficiencies going unnoticed.

Expert Tip: Establish feedback mechanisms and be open to making necessary adjustments.

For a broader look at workforce scheduling, check out this article: What is Workforce Scheduling, and Why Is It Important?

The Future of Demand Based Scheduling

As we look ahead, the importance of demand-based scheduling only seems to be growing. With advancements in AI and machine learning, the predictive accuracy of demand forecasting is bound to improve, bringing about even more efficiency in workforce management.

a. AI-Powered Predictions

Artificial Intelligence (AI) has already started to reshape how demand forecasting is conducted. With machine learning algorithms, these systems can identify patterns and trends that might be missed by human analysis. This offers businesses the ability to predict customer demand with even greater precision.

b. Real-Time Adjustments

As technology advances, so does the ability to make real-time adjustments. Future scheduling software will likely be able to automatically adjust schedules based on current demand data, making the entire scheduling process more dynamic and adaptable.

Read more on dynamic scheduling here: What is Dynamic Scheduling?

 

c. Integration with Other Business Systems

The future will see more seamless integrations between scheduling software and other business tools – from point-of-sale systems to inventory management. This will ensure that the entire business ecosystem is responsive to changes in supply and demand.

d. Employee Empowerment

Technology will also empower employees more directly. Imagine a scenario where employees can swap shifts with colleagues in real time based on their preferences and the predicted demand for a particular day. This not only caters to employee needs but also ensures that staffing levels meet demand.

e. Sustainable Workforce Management

Demand-based scheduling will be crucial as businesses become more conscious of their environmental and social footprints. By optimising labour costs and reducing overstaffing or understaffing, companies can ensure sustainable operations, benefiting both their bottom line and the broader community.

To learn more about automated workforce scheduling, read this article: Automated Workforce Scheduling.

Conclusion

As businesses ride the unpredictable waves of market demand, tools and strategies that allow adaptability will be invaluable. Demand-based scheduling is not just a fleeting trend but a forward-looking approach that’s set to redefine how businesses manage their workforce.

With technology’s continuous advancements, we can only anticipate even more refined and efficient scheduling solutions on the horizon. If you’re not already on board, now might be the perfect time to dive in – the future is, after all, demand-based. Follow this to discover our dynamic workforce scheduling solutions.

Edward Bell

Edward Bell

Edward Bell, Totalmobile's Content Strategist, shapes and delivers compelling content spotlighting their unique SaaS solutions. With 6+ years in MarComs, his journey spans diverse marketing roles, driven by tech passion. Edward fuels Totalmobile's mission, educating and advocating for impactful solutions across sectors, ensuring ROI for customers.

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