GENERATION AI
Engaging the Supply Chain Workforce By ANDREW BILLINGS, SR. , Managing Director, Supply Chain, North Highland
Giving Performance-Based Bonus Incentives Increasing wages as a cost-saving measure likely sounds counterintuitive, but that is exactly what leading distribution companies are doing. While performance-based pay is not new, we are seeing a renaissance in this approach, driven by several factors: ♦ Advancements in data infrastructure: Decade-long investments in LMS and engineered standards now enable timely and accurate visibility into performance at the individual associate level. ♦ Speed and scalability: Unlike some robotics or automation upgrades, which can take years to implement, performance-based bonus programs in distribution environments can be implemented 3-5 times faster. ♦ Market expectations: Similar performance incentives are becoming table stakes in competitive labor markets, with job candidates increasingly asking about these programs. However, performance-based incentives epitomize “easier said than done” in the distribution industry. As one Fortune 500 retail chief supply chain of cer puts it, “We only get one chance at this—we have to get it right.” While program speci cs must be tailored to each company, successful ones share several guiding principles: ♦ Keep it simple. Incentive payouts should be easy to understand. If calculating a bonus requires multiple spreadsheets, it’s over-engineered and will cause confusion. ♦ Make it accessible and motivating. Ensure 30-50% of associates can achieve incentives, with top performers earning 10-20% of their base wage. ♦ Pay out frequently. Payouts every 2-4 weeks sustain engagement and momentum. ♦ Create win-win outcomes. Productivity gains should bene t both the employer and the employee. When structured properly, these programs become part of the cultural foundation of the supply chain.
The supply chain workforce has undergone a dramatic shift over the past four years—from the post-pandemic talent de cit to today’s unprecedented demand for record-breaking workforce productivity. Leaders face a key challenge: sustaining workforce programs that built resilience during the talent crunch while addressing urgent cost pressures. Developing Performance Coaching Programs As productivity becomes a key differentiator, leading supply chain networks are reviving coaching programs with renewed focus. These efforts center on three key elements: 1. Coaching for all. Coaching programs must support every associate, not just underperformers. When coaching is reserved for corrective action, it fails to inspire. Think of it like pro sports: Even all-stars bene t from spending 1:1 time with their manager or position coach on how to improve their performance. 2. Specific, actionable feedback. Leaders must invest time observing each associate perform their job, understanding how they execute tasks (methods) and how frequently they perform those tasks (utilization). Speci c guidance tailored to an associate’s unique role drives improvement. 3. Leveraging data . Coaching sessions provide only a snapshot into an associate’s performance. To maximize impact, leaders must supplement real-time observations with high- delity performance data. Leveraging trends from labor management systems (LMS) or similar platforms allows leaders to provide data-backed recommendations that resonate with associates and guide impactful change.
GEODIS Embraces Next-Gen Labor Tool Global logistics provider GEODIS launched a new labor management system (LMS) to bring real-time visibility into workforce effectiveness and cost to serve. In collaboration with Easy Metrics, GEODIS started implementing the Easy Metrics LMS, built on the ProTrack technology
foundation, in 90 of its facilities in the Americas. The next-gen solution allows operational teams to forecast labor needs, align teams with fair standards, and drive protability. GEODIS sought to upgrade from older LMS solutions that relied on teammates for manual analysis. With the Easy Metrics platform, GEODIS can boost engagement and productivity within its teams and across its operations. For example, GEODIS engages its teammates and leaders through its Pay-for-Performance (PFP) program and Productivity Pyramid. The PFP program offers teammates an opportunity to earn extra weekly pay for good performance. Measuring operations as a whole, the Productivity Pyramid evaluates seven key areas including labor productivity, engagement, inventory accuracy, safety, process adherence, LEAN/Six Sigma results, and daily habits.
46 Inbound Logistics • November 2025
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