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Unusual staffing arrangement yields savings for distribution center

Partnership saves money, boosts performance, and offers a new model of collaboration.

(Boonton, NJ, October 11, 2013) — At most distribution centers, the relationship between DC operator and staffing firm is an arm’s length transaction.

The DC needs people, and it’s willing to pay the staffing agency to deal with recruiting, hiring, and paying workers.

But when Focus Products Group decided to raise the level of performance at its DC in Pleasant Prarie, WI, the company didn’t want to stick with business as usual.

Instead, it had a long list of demands. Focus Products Group wanted better workers and better technology to track their performance — but it didn’t want to invest anything up front.

Sensing both a challenge and an opportunity, labor management firm TZA decided to tackle the task.

The result is a collaboration that TZA President Evan Danner tells Distribution Center Management is saving money, boosting performance, and offering a new model of collaboration.

Here’s how it works:

  • TZA hires and pays most of the workers at Focus Products Group’s DC.
  • TZA provides a labor management system and collects a percentage of staff costs.
  • Focus Products Group pays a flat fee and reaps any savings from increased productivity.
Details on this unusual arrangement appear in the October issue of Distribution Center Management.

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