Industry: Food Processing
Overview
The company has 90% of the warehouse workforce as contractors. There is no guarantee that every operator will work continuously. There used to be a fixed bill rate for every day for each warehouse worker, and there was also the possibility that some workers are performing their job better than expectations and some are not. In order to differentiate the performance of each worker and encourage workers with incentives, the company wanted to track the performance of workers.
Challenges
- There was a lot of push back from business about the functionality since it's directly related to performance measures based on activities but after realizing the benefit of incentives for better performance, business started adapting it.
- There were 3 additional steps in transactions - capture start time, capture the end time, and enter processor information.
Solutions
- Analyzed critical areas of activities and identified picking & replenishment as the most critical area where the performance is needed
Outcome
30% efficiency improvement amongst DCs and each worker. Since warehouses are managed by third-party, it established healthy performance competition between different service providers which resulted in operational efficiency.