Frequently Asked Questions
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Simplified GainSharing is a hourly employee incentive program based on sliding scales with no caps. It's designed to be 'plug & play', and easy to install in any distribution center. A more detailed explanation of this method of supply chain optimization can be found by clicking on OVERVIEW, or in our book Warehouse Productivity. |
The Simplified GainSharing method of supply chain optimization is suited for many, but not all workforces. It would be much less effective in factories, where machines or assembly lines drive the facility's productivity. Simplified GainSharing is at its best in workforces where there is a lot of discretionary decision making, such as distribution centers, call centers, office or other white collar environments, janitorial or housekeeping services. |
Because there is an untapped plentitude of discretionary decision making in these facilities that has not been addressed by current DC metrics. |
The success rate will vary with each DC, but our method of supply chain optimization has never failed to produce significant gains wherever it has been installed. Several of our DCs have doubled their productivity over a four to five year period.
To get a handle on how much supply chain optimization can improve labor productivity, we think it's conservative to take the amount of FTEs (Full Time Equivalents) in your own DC or network, assume a participation rate of at least 65% in year one, & multiply that headcount by $3,000 to $3,500. This will give you an estimated labor savings annual run rate number after a year on Simplified GainSharing. |
Where this might sound high, we think it's conservative, and also indicative of how much discretionary hourly decision making is actually present in distribution centers. When workers make decisions based on their own financial benefit, they quickly discover new motivation and will squeeze all the fat from your processes and system.
The reason we think $3,500 is conservative is because the network where we invented the Simplified GainSharing supply chain optimization system is currently at $5,500 per participating FTE per year (and bear in mind that's after five years of Buyouts that are not calculated in the $5,500). In fact, LDG is so confident in the program, that it GUARANTEES clients a minimum of $2,500 savings per participant in the first year of implementation. |
After. It's a net $3,500. |
Because we're all drawing employees from essentially the same hourly labor pool, & the majority of these workers respond extraordinarily well to a sliding scales with no caps system of supply chain optimization. People are people. We've installed the program in distribution centers in all the major regions of the USA, all with similar success. |
Simplified GainSharing can be used as a solid method of evolving your workforce into one composed entirely of excellent performers. This methodology -- which we call Fantasy Workforce -- is described in detail in the book, Warehouse Productivity. |
Call or e-mail anyone on the LDG team. You will also find additional information on the Services, Products & Publications pages on this site.
Please feel free to contact us. |
