Through revamping Colonial Life’s fulfillment processes, Bise learned how to effectively negotiate for the best line-item changes. “When negotiating pricing structure for warehouse fees, fulfillment/line item charges and print-on-demand unit pricing for black-and-white and color documents, calculate annual volume increases that are in line with product line and corporate goals,” he says. “Always include quarterly reviews and adjustable rates as part of the contract. This is a win/win for your company and your partner.”
While the new system significantly improved Colonial Life’s ROI, its implementation was not seamless. The biggest challenge the company faced was conducting business through one online ordering system and warehouse while building another platform with a new business partner. How did the company get all team members on the same boat? Creating a quarterly employee incentive program based on collective scores using the program’s separate internal facility auditing process and evaluation standards helped to expedite the transition, Bise says. “Tying incentives into expectations ensures everyone has skin in the game when it comes to the service-level agreements. An incentive program is a model worth exploring.”
—Kate DeBevois
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