This media communications company was looking to update their DC processes and spur labor productivity.
In an economic climate of flat revenue, yet faced with increasing labor costs, this client needed a fresh approach. While additional automation and technology was a possibility, the large capital investment could not be justified.
A multi-focused effort to improve effectiveness of both the hourly associates and the DC supervisors was undertaken. Engineered labor standards and a pay-for-performance program were implemented in the DC for all associates. A new Labor Management System (LMS) was installed to manage the program and provide metrics. To capitalize on these new tools, and build a Performance Management culture, a series of leadership development courses were also taught to an awakened leadership team.
The combination of new labor management tools with new metrics and reporting enlightened management to lead their operation more effectively. With a large boost in associate productivity, the use of temporary labor declined and the existing associates were earning a higher wage based on their performance, which negated the need for a flat wage increase. Management learned how culture and performance can mesh together to create a more dynamic workplace, and labor costs were reduced by 20% as a result of the new performance culture in the DC.