This high-fashion, fast-growing e-commerce retailer had just moved into a new DC in a large midwest city. While this city was well-positioned geographically for serving the entire U.S., there are also hundreds of other DCs located nearby, and all were competing in the same labor pool for DC associates.
This retailer needed to accomplish several tasks quickly upon opening this new facility: They needed to attract associates in a highly-competitive market; quickly ramp up volume to meet their growing customer demand; and they wanted to reward and recognize their associates so that they could retain them and avoid the high turnover that was rampant in this city.
LogistiPoint quickly mobilized a team to begin working in the outbound operations just prior to peak season. Procedures were streamlined, best methods were identified, and training of all associates was intensified. In order to accelerate the output during peak season, engineered labor standards were developed along with a pay-for-performance plan for the associates.
The first peak season was a success, and the cost per package shipped dropped to a new low. As the new year began, the engineered labor standards, training, and pay-for-performance program were rolled out to all operations in the DC. The new labor management program resulted in a 30% productivity increase, a 15% lower cost per package shipped, and nearly 80% of the workforce began earning incentive pay for their increased efforts. Most importantly, a stable, productive workforce with low turnover has been established in a very challenging labor market.