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We don't have to tell you that improving profitability is the number-one driving force in today's operating environment. Honing your picking productivity is one way to reduce labor costs, extend facility capacity (buying time until your logistics network is expanded), and improve employee retention — all of which contribute to profitability.
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ARC surveyed over 200 logistics professionals on how they were using incentive programs in the warehouse. Incentive programs for the warehouse, implemented in a variety of ways, have resulted in striking gains in productivity! Over 63 percent of respondents achieved productivity gains of between 10 and 30 percent over a two year period. Another 13 percent achieved productivity gains of over 30 percent in that time period. These programs have also resulted in other benefits such as increased employee satisfaction which leads to improved retention. The great majority of logistics managers are satisfied with their programs.
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Are you operating your warehouse, distribution center or manufacturing facility at maximum efficiency? Most people would answer “no” and are willing to settle for good, but not great. Efficient operations reduce operating expenses which translate directly to the bottom line. Yet, many companies are satisfied by making budget and tend to focus on other core competencies. Efficient operations improve customer service levels. Yet it is not uncommon for companies to focus more attention on customer service departments to handle customer’s complaints.
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