The manager of a fulfillment center in the Upper South was under pressure from several of its major customers to reduce its costs. That meant finding a way to persuade pickers and packers to work more quickly and accurately. We were called in to help.The manager pointed out that reducing overtime was critical. He needed to cut the average cost of fulfilling an order. The distribution center stocked a wide variety of children’s garments, toys, books, and school supplies made by about a dozen different manufacturers, several of which were Pacific Rim suppliers. Third quarter shipments were critical due to back-to-school orders, and fourth quarter Holiday Season items had to be shipped on a timely basis.
In the course of the conversations, we realized that distribution employees worked virtually autonomously since most warehouses are so large, physically. There was a need to devise a system that would motivate employees to work quickly and accurately even though they were not under the constant view of a supervisor.
Here are the results of the Gainsharing Plan we engineered for this distribution center.