Distribution Incentives – WHY

A leading research and advisory firm for manufacturing and supply chain solutions surveyed the supply chain and warehousing industry regarding incentive programs. CTS, Inc. was not at all surprised by the results. For more than 25 years we have seen the results of properly applied standards in a warehouse environment. The only surprising fact is that more companies don’t take advantage of incentives.

Based on studies by ARC Advisory Group, companies using incentives saw productivity increases of more than 10% in 3 out of 4 installations while 13% reported more than 30% productivity increase. In addition to productivity increases, improvement in employee satisfaction (62%), poor employees leaving the company (41%), reduced turnover (29.3%) and fewer labor grievances (2.4%) were reported.

With the cost of hourly pay increasing and fringe benefits rising by significant amounts every day, the savings derived from a well conceived and properly maintained incentive system can provide a company with tremendous ROI. The savings derived will accrue for many years to come, both in the direct savings that are easily measured as well as the indirect savings that make a company even stronger. In this competitive market, companies should look for all advantages.

CTS, Inc. has had many opportunities to establish incentive systems. We understand the process and can make it happen for you. With management’s commitment, a successful implementation will reap long term rewards. For more information, contact:

CTS, Inc.  --  864.232.0997

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