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About The Labor Development Group & Simplified GainSharing
 The Labor Development Group (LDG), was formed by individuals who invented, refined & implemented Simplified GainSharing systems at various distribution centers throughout the USA. They soon dedicated themselves to the concept of dramatically increasing warehouse productivity & quality by using this exceptional incentive system based on the principles of individual performance, coupled with sliding scales & no caps.
LDG implemented Simplified GainSharing in numerous distribution centers, some of which are now in their sixth or seventh year of implementation, all successful with high performance workforces responsive to Simplified GainSharing. These operations benefited from this labor consulting to the tune of millions of dollars in savings. The members of LDG are convinced that once a management team understands how to harness the decision making of line employees in a distribution center, a call center or hourly office environment, the sliding scales with no caps unfailingly generates significant labor savings & gainshare payouts. The secret lies in developing a consistent corporate governance; LDG calls the program the Corporate Administrator.
Simplified Gainsharing installations in distribution centers in the wholesale hardware & hardlines industries are currently averaging a net labor savings of $7,500+ per year per participating blue collar or hourly employee. To be conservative, LDG recommends DC managers use a figure of $3,500 to determine the potential annual savings for the specific distribution center or network. If your DC has 100 hourly employees, it's safe to forecast a $350,000 annual net labor & quality savings from the use of Simplified GainSharing. Likewise, a network of 1,000 hourly employees can expect to see net $3.5 million in annual savings, as a rule of thumb. LDG is so confident in the program, that it will install the entire productivity program in your distribution center, warehouse, or other hourly workforce center at no cost up front.
More details can be found in the Consulting section
BIOSPat Kelley
Founder & CEO
Pat Kelley is the Founder & CEO of Labor Development Group, & Director of Logistics for the True Value Company, the corporate umbrella for three hardware Coops: True Value, Servistar & Coast to Coast Hardware.
He has been with True Value for 30+ years, performing in nearly every position in the logistics organization. In the early 1990s he ran True Value's Human Resources corporate department for four years, then he returned to Logistics. Currently he has seven DCs reporting directly to him, with dotted line responsibility for the another six.
In 1999 he invented an iteration of GainSharing he calls Simplified GainSharing, which he implemented throughout the network. He wrote a book on these topics called Warehouse Productivity, collaborating with logistics consultant Ron Hounsell. The book is published by the Alexander Communications Group, & available by clicking on the Publications button.
Where he only recently started writing in the field of Logistics, Kelley is a widely published author of serious literature, with over 1,700 of his writings appearing in journals worldwide. He can be found in the periodicals of Georgia State University, Slippery Rock University, the Air Force Academy, the University of Kentucky & Kent State, to name a few. A three-time Pushcart Prize nominee, he published two paperbacks & is the recipient of the Nassau Review Poetry Award for 2001. Kelley holds a M.A. in Creative Writing.
Ron Hounsell
Vice President & COO
Ron Hounsell is Vice President & COO of the Labor Development Group. He has spent 24 years in the supply chain operations & consulting with concentrations in strategic planning, productivity improvement, technology, purchasing, inventory & project management. Roughly half of that time was spent as a logistics consultant in three different positions, working with clients from $50 million to $8 billion in annual revenue.
Mr. Hounsell also spent several years as the main logistics executive in privately held publishing & apparel operations. In those assignments he had P & L responsibility, & other functions - IT, Accounts Receivable, Customer Service & Quality Control - reporting directly to him.
He is active in the Council of Supply Chain Management Professionals (CSCMP), the Warehouse Education & Research Council (WERC), & APICS, makes frequent speaker appearances, & regularly contributes to industry trade publications. Mr. Hounsell holds a Bachelor’s degree from the University of Wisconsin, Madison & a Master’s from Northwestern. He is certified in Integrated Resource Management (CIRM) by APICS.
Mike Haining
Advisor
Mike Haining is a well regarded supply chain and operations executive. Most recently Mike was Senior VP, Logistics and Manufacturing for True Value Company where, among other accomplishments, he achieved significant productivity gains through the use of Simplified Gainsharing.
Prior to his work at True Value, Mike was VP, Supply Chain for Kraft Foods, North America where he led the restructuring of Kraft's entire Distribution and Transportation network as well as achieving significant improvements in inventory optimization. His other roles in his career at Kraft included leading global operations strategy, acting as Operations Business Director for Post Cereals, and a variety of director positions for Divisional supply chains.
Earlier in his career, Mike as a Senior Consultant in Coopers and Lybrand’s Global supply chain optimization practice, winning their prestigious Excalibur award for North America consulting excellence. Mike began his career with a nine year assignment at Colgate Palmolive where he held management positions in operations, distribution and engineering.
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