You Get What You Measure: Labor Management Yields Results

BOSTON, MA--(Marketwire - April 8, 2010) -  Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), announces the release of its new research study, Labor Management: Instill Accuracy, Efficiency, and Productivity in the Warehouse and Retail Store. The study, which captured data from over 110 companies, found that by utilizing labor management both warehouses and stores benefit from better service and efficiency, and labor costs and formal training are decidedly better.

In Aberdeen's December 2009 study on Efficient Warehouse Management, adopting more efficient warehouse processes was the most-cited strategic action (70% overall) for managers looking to address the reduction of operating expenses. But what good are processes without a skilled and engaged staff that is capable and driven to convert those theoretical gains into reality by measuring and managing labor performance?

In this tough economy, with cost-containment pressures mandated by company executives (67% overall), our findings show that top performers focus on labor standards, ongoing monitoring, and performance-based incentives to drive down labor costs while still delivering business results. Productivity gains through the extended fulfillment process help warehouse and store managers keep product moving from the warehouse dock through to the retail floor and end customer in an efficient and cost-saving manner.

Employee measurement coupled with incentives and training leads to engagement. "Top companies are leading the way by engaging their employees through both formal on-boarding programs, and implementation of incentives tied to meeting performance goals. Leading performers are achieving practice levels on these two processes of 1.6- to 1.8-times higher than all others combined," says Bob Heaney, Senior Research Analyst, Aberdeen Group.

"Labor Management Systems (LMS) and engineered labor standards programs are specifically designed to address the challenges and complexities of labor productivity. Hence, it's not surprising to find that leading companies are 2-times to 2.7-times more likely than all other companies to enjoy higher adoption levels of these solutions," says Heaney.

A complimentary copy of this report is made available due in part by the following underwriters: Kurt Salmon Associates and West Monroe Partners. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6327&camp2

Visit Research.Aberdeen.com for additional access to complimentary Supply Chain Management Research.

About Aberdeen Group, a Harte-Hanks Company
Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

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