Profile of Success: Educational Pursuits
Plan of action: The long-term costs of outsourcing outweighed the benefits, so Brough and the logistics team implemented the following tactics:
1. Built a better management team. Since 1994, the management staff increased from eight to 16, including three full-time industrial engineers.
2. Provided better tools. Brough oversaw the installation of a warehouse management system, a transportation management system, and the design and construction of LifeWay’s second DC.
3. Reduced headcount. Brough and his team reduced the number of DC employees from 310 to 195 full-time equivalents, even as sales grew from $257 million to $429 million in the last decade.
4. Incentivized DC employees. He also put in place a program that allows employees to increase their pay by 9 percent based on their performance.