State-of-the-Art E-Commerce Facility Saves Big with Engineered Labor Standards

Our consultants helped a Fortune 200 retailer build a world-class labor management program with cutting-edge performance technology to support the company’s highly automated e-commerce distribution center (DC). The result? An average monthly labor efficiency improvement of over 31 percent, translating into labor budget savings of over $1.5 million within the first year of the program.

Client Situation

The retailer engaged our team at the end of their automated distribution center’s first year in operation. They needed a partner that could hit the ground running to design and implement labor standards, specifically multivariable standards, to achieve a healthy and efficient labor climate. The client also sought a people-focused training program that would guide the leadership team in managing the new labor initiative.The training program aimed to instill confidence in the client’s leadership by arming them with carefully designed, effective tools and high-quality data to better inform critical operational decisions. We approached the labor standards program with the goal of creating capability among associates, providing valuable, real-time feedback, and helping supervisors identify trouble spots needing attention.

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Insights

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