THE CHALLENGE
Growth Limitations and High Turnover in a Rapidly Expanding Brand
Growing 15–20% annually, a rapidly growing footwear brand was quickly approaching its limits. It was running out of storage and processing space.
Their growth also forced the company to depend heavily on a poorly performing temporary workforce, with a stubbornly high turnover rate of just over 100%. Even with new material handling upgrades, morale was low from 10-hour days and weekend work. Still, they couldn’t ship more than 30,000 pairs a day.
THE SOLUTION
Implementing AMP to Create a Performance-Driven Culture
The JTG team collaborated closely with this client to implement the AMP Performance Management methodology, establishing a performance-driven work culture to transform operations.
JTG introduced a pay-for-performance and labor management program designed to be fair and sustainable. Simplifying and standardizing operations was vital, so JTG partnered with Manhattan Associates’ configuration team to streamline system setup — while avoiding costly program modifications. The focus was on creating a seamless process that met the client’s unique needs.
The team guided the client’s operations management in developing a comprehensive performance management strategy. This included engineered labor standards, robust incentives, and extensive training for both leaders and associates. The result was an efficient work environment where everyone understood their roles and felt motivated to excel.
THE RESULTS
Doubling Shipping Output and Reducing Labor Costs
After partnering with JTG and adopting AMP, the footwear brand no longer worked weekends and more than doubled its shipping output — with less labor. Here are their impressive results:
Employee compensation increased by 5–17%.
Achieved the lowest labor cost per unit in the facility’s history
Improved product flow and alleviated bottlenecks, avoiding a $2M sorter expansion
Reduced employee turnover by two-thirds
Extended the facility’s life by two years, allowing for a more thorough strategy and facility design.
These outcomes highlight how working together can lead to significant improvements and accelerated efficiency, proving that a performance-driven culture can transform a company’s success.