"Retail distribution is complex and labor intensive. In the distribution center, 50-65% of costs can be tied to labor. In fact, we estimate that 75 minutes of every eight hour shift are not productive. With the implementation of RedPrairie's solution, customers benefit from a 15-40% increase in labor productivity and a 10-20% reduction in distribution costs. Generally the system pays for itself in less than a year," says Peter Schnorbach, Vice President Product Marketing - Workforce Performance Management, RedPrairie.
Schnorbach continued, "ARC indicates that many warehouses are only working at about 65% efficiency. Once a labor solution based on objective standards is implemented, many companies exceed 100%."
According to the August 2005 AMR Research report on Labor Management, "RedPrairie has the broadest set of capabilities, reflective of how long it has been in the distribution labor market. Over the last five years, the company has been at the forefront of helping companies automate their labor processes."
RedPrairie Company Leader John Jazwiec comments, "We have a successful track record of providing retail customers with solid return on investment by optimizing the labor cost within their facilities. Many companies have recognized the true value our workforce performance solutions provide - evidenced by over 550 implementations. Often customers implement our solution at one site and the ROI is so strong that it justifies rollout of the solution to the rest of their network."
Jazwiec continues, "Optimizing the supply chain for retailers is a focus for RedPrairie. Another example of our commitment to the retail marketplace is the recent acquisition of RangeGate Mobile Solutions which expands our retail solutions with in-store and home delivery capabilities."
RedPrairie DLx Labor helps companies improve labor productivity by tracking the efficiency of individual tasks and driving operational improvement. Instead of simply measuring efficiency, RedPrairie is able to tell "how" a task should be completed to maximize productivity. Discrete standards are then applied, which quantify individual moves at a finite level to determine actual job standards.