This media wholesale company was looking to update their DC processes and spur labor productivity.
Faced with increasing labor costs in an economic climate of flat revenue, this client was seeking a fresh approach to energize the operation and their associates. While additional automation and technology was a possibility, a large capital investment could not be justified.
The LogistiPoint team designed a multi-focused effort to improve effectiveness of both the hourly associates and the DC supervisors. Part of that effort included implementing engineered labor standards and a pay-for-performance program in the DC for all associates, in addition to installing a new Labor Management System (LMS) which was used to manage the program and provide metrics. To capitalize on these new tools and build a performance management culture, LogistiPoint also taught a series of leadership development courses 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 began 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.