EconPapers    
Economics at your fingertips  
 

VARIABLE PAY 2.0: TRANSFORMING THE POST-TRANSITIONAL CONTEXT IN WAREHOUSE LOGISTICS

Ilija Coric () and Katija Vojvodic ()
Additional contact information
Ilija Coric: MCI d.o.o.
Katija Vojvodic: University of Dubrovnik, Department of Economics and Business Economics

Business Logistics in Modern Management, 2018, vol. 18, 109-123

Abstract: Considering the ever-increasing pressure on gross margins in the FMCG industry of post-transition economies, top management is more inclined to seek the alternative sources of competitive advantage. In particular, this refers to the area of supply chain management. The consolidation of large retail buyers and the consequent growth in their market share contributes to redirecting the focus on internal supply chains. In that context, the methodology for calculating variable pay is one of the mechanisms for achieving greater labour productivity and subsequent cost reduction. Based on the previous work on variable pay in warehouse operations and its major limitations, the present paper aims to further develop the concept of variable pay schemes of warehouse employees to increase their productivity. The paper employs a case study approach to examine warehouse operations in the distribution of FMCG products in the market of Bosnia and Herzegovina. A more precise classification of warehouse employees’ work assignments has been enabled using a warehouse management system. Consequently, a considerably changed share of fixed and variable elements of salaries leads to increased productivity compared with the initial model of variable pay calculation system. Furthermore, applying advanced technology to supply chain provides a greater selection of mechanisms related to warehouse workers’ productivity improvement. Importantly, it also results in increased motivation of top management to introduce variable pay schemes. To further the research a special emphasis should be put on the profitability analysis of developing and implementing a warehouse management system in warehouse operations

Keywords: warehouse logistics; variable pay schemes; warehouse management system; Bosnia and Herzegovina (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.efos.unios.hr/repec/osi/bulimm/PDF/Busi ... ment18/blimm1807.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osi:bulimm:v:18:y:2018:p:109-123

Access Statistics for this article

More articles in Business Logistics in Modern Management from Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia Contact information at EDIRC.
Bibliographic data for series maintained by Davor Dujak,PhD (). This e-mail address is bad, please contact .

 
Page updated 2018-12-01
Handle: RePEc:osi:bulimm:v:18:y:2018:p:109-123