How Productivity Affects Profitability 

Productivity is key to the profitability of any business. Efficiency increases the profit margin for operations. Lack of productivity and inefficient practices in your company means that your overhead increases, and the profit decreases.

A highly productive business accomplishes the most work with the least time, effort, and expenses. Factors such as higher costs, wasted time, errors, and employee dissatisfaction hamper productivity and, in turn, reduce your profitability. 

You can increase productivity by identifying and addressing these factors, and profits will follow.

How to Improve Employee Productivity

Improving employee productivity requires analyzing your current flow of operations and finding ways to curb inefficiencies. Some factors that can contribute to low productivity include: 

• Poor storage methods – Time is money, and one should optimize material handling so it’s streamlined and efficient in a warehouse setting. Unfortunately, this isn’t always the case. Bad practices can hurt your facility’s overall productivity and bottom line.
• Disorganization – Being disorganized leads to inefficiency and poor employee morale and could create a dangerous work environment. 
• Low employee morale –  Employees with low confidence will display signs that include: increased absenteeism, conflicts with co-workers, insubordination, decreased productivity, disorganized and unkempt work environments, routinely complaining about seemingly minor work-related issues, and raised patient complaints in regards to the employee’s behavior.
• Poor warehouse operations – Common warehouse problems such as redundant processes, poor facility layout, seasonality in demand, high labor costs, and inaccurate inventory information require robust systems that keep managers informed about changes and gaps that need attention.
• Poor inventory management software – Beyond having too little or too much inventory, poor inventory management causes inefficiencies because you don’t have accurate real-time information on how much stock you have. This issue increases the risk of mistakes in reordering inventory from suppliers or of selling nonexistent merchandise.
• Poor ergonomics – Poor ergonomics contributes to muscle strain, imbalances, and fatigue. Muscle strains result from performing the same motion repeatedly over and over again. These motions create repetitive stress injuries, some of the most common workplace injuries.

Philosophies such as lean, Six Sigma, and Kaizen provide a framework for improving productivity by identifying and eliminating areas of waste and inefficiency in your workflow. 

Six Sigma – This management approach is a set of management techniques intended to improve business processes. The process is enhanced by significantly reducing the probability that an error or defect will occur. The Six Sigma strategy’s significant benefits include customer satisfaction and reduction of overhead costs. Practicing Six Sigma methods leads to revenue growth and productivity improvements. The Six Sigma method provides special analytic and process skills. These skills are relevant to leadership positions.

Kaizen – ” Kaizen is a compound of two Japanese words that together translate as “good change” or “improvement.” However, Kaizen has come to mean “continuous improvement” through its association with lean methodology and principles. Kaizen has its origins in post-World War II Japanese quality circles. Small steps, every day, over time, accomplishes miracles. Kaizen”

Solutions that reduce employees’ time and effort in searching for items are cost-effective in improving employee morale and productivity—high employee morale results in increased teamwork.

With high employee morale comes increased levels of job satisfaction and general feelings of well-being. Individuals are more inclined to work together and collaborate as a well-functioning, cohesive unit. 

Fulfilled employees rich in benefits aren’t just more productive; they tend to stick with their companies longer. These benefits can also attract better new hires, so the circle of happiness and productivity continues.

Our Productivity Solutions

Automated Storage & Retrieval Systems (ASRS)

Automated storage and retrieval systems dramatically enhance productivity in warehouses and manufacturing facilities, along with several other applications. 

Vertical lift modules, horizontal and vertical carousels, and vertical buffer modules are examples of ASRS. 

All of these automated systems bring needed items directly to the operator, eliminating the time and effort of searching for stored products. 

Pick-to-light technology virtually eliminates picking errors, with some applications achieving an accuracy level of 99.9%. ASRS typically increases productivity by up to 66%. 

High-Density Shelving

High-density shelving systems eliminate wasted aisle space to cut your storage footprint in half. With ergonomic manual or powered controls, employees can easily open the sliding system to the desired aisle and access stored items. By doubling your storage capacity in your existing space, the mobile systems alleviate overcrowded storage and improve organization, making it easier for employees to find what they need.

Compact Pallet Racks

Compact pallet racks are a high-density pallet storage solution designed for warehouses. Like the high-density shelving, the racks maximize your storage capacity in a limited footprint and open easily with the automatic push-button operation. 

Lektriever Filing Cabinets

Lektriever filing cabinets make file retrieval virtually effortless. The automated filing cabinet stores files in a compact footprint and brings the desired file directly to the operator at an ergonomic, ADA-compliant adjustable counter. By dramatically reducing the time and effort required to locate a stored file, the electric filing cabinet can increase employee productivity by up to 66%.

Document Scanning

Digital records are much easier for employees to locate and access than paper files. Our document scanning services securely convert your paper records to an electronic format, so you no longer have to spend time and effort searching for a paper file. Electronic records also afford additional security and audit tracking features.

Mobile Workstations

Mobile workstations are a flexible alternative to traditional office cubicles. You can quickly relocate this office furniture as needed to create the most productive setup for your workplace at any given time.

Sit-Stand Desks

Employee comfort and morale are crucial for productivity. By allowing employees to choose when to sit or stand while working, adjustable sit-stand desks help prioritize employees’ health and comfort so they can work more efficiently. 

Large Diameter Fans & Wind Turbines

HVLS fans and wind turbines increase employee comfort in industrial work environments. The large diameter directional fans, high volume low speed (HVLS) fans, and wind turbines cool your facility to enable employees to increase productivity while reducing energy costs.

Contact Us for Productivity Solutions

These are just a few of our innovative and easy-to-use solutions that will improve your productivity, save floor space, and increase employee ergonomics. We will also provide a business efficiency analysis at no cost to you so we can determine how to meet your exact needs. To get started, call us at (800) 803-1083 or send us a message today.