Press Releases

New guide helps managers increase warehouse quality and productivity

(Boonton, NJ, February 22, 2005) — Corporate America is increasingly tying employee compensation to performance. While this practice has been common for many executives, it is now filtering down to all employee ranks. The message is clear: Extra pay is a reward for those who perform at high levels.

In their new book Warehouse Productivity authors Ron Hounsell and Pat Kelley present a blue-collar incentive plan that is designed to improve — even double — workforce productivity in the warehouse or distribution center.

Pat Kelley, assistant vice president of logistics for TruServ, explains how the program works:

First, the company establishes a baseline productivity expectation for the different tasks and operations. Once the employee reaches a certain productivity level over that baseline, his or her hourly wage is adjusted upward.

TruServe reviews the employee’s performance each month. If productivity drops back down, or if quality levels are not acceptable, the employee loses the corresponding bonus.

The plan works because approximately two thirds of the financial gain associated with the productivity increase goes to the company and one-third to the employee, says Kelley.

Kelley and Hounsell have implemented this type of Simplified Gainsharing program at distribution centers across the country — often with startling results. For example: TruServ’s productivity measure increased 79 percent from $619 throughput per work hour to $1,105 and quality levels improved by 40 percent.

The book itself guides the reader through the three major stages of implementing and operating a Simplified Gainsharing approach. It includes real-world examples of how to apply the principles and strategies outlined as well as a wide range of sample documents to help you implement the program.

Additional information on Warehouse Productivity is available online at http://www.DistributionGroup.com/wprod.php or by phoning the Distribution Group at 1-800-232-4317.

About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.

Website: http://www.DistributionGroup.com