MHEDA Journal addresses payroll expense management.
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Press Release Summary:
The MHEDA Journal, Q1 2010 issue, features article by Dr. Albert D. Bates titled "The Problem That Will Not Die" that discusses strategies for managing payroll expenses at material handling distributorships. Bates makes suggestions that can help material handling distribution firms increase personnel productivity ratio by adjusting sales volume, payroll costs, or gross margin. Firms can maintain sustainable profitability by improving ratio by as little as 2%, Bates says.
Original Press Release:
Material Handling Journal Tackles Payroll Expense Management
The MHEDA Journal offers strategies for limiting costs related to salaries and benefits.
Dewitt, NY - The First Quarter 2010 issue of The MHEDA Journal, the leading online magazine for the forklift, storage and handling, and general material handling equipment industries, features an article from Dr. Albert D. Bates, president of the Profit Planning Group, discussing strategies for managing payroll expenses at material handling distributorships.
The article states, "Payroll expense is like a character in a cheap horror movie - it is frightening, and just when it seems to have been vanquished, it turns up in a sequel. This time the sequel is due to sales challenges associated with the recession. Sales have disappeared faster than reductions in payroll expense can be made."
To remedy that, Bates makes suggestions that can help material handling distribution firms increase their personnel productivity ratio (PPR). The PPR expresses total payroll expense as a percentage of the gross margin dollars generated by the firm. Ways to help keep this ratio manageable include making adjustments to sales volume, payroll costs or gross margin. Bates suggests that firms can maintain sustainable profitability by improving this ratio by as little as two percentage points. "It is clear that a 2% reduction in the PPR increases profits significantly. It is a reasonable starting point for planning," Bates adds.
To read more, read the full article "The Problem That Will Not Die" in the Winter 2010 issue of The MHEDA Journal Online. Read the full text of the story at www.themhedajournal.org/content/1q10/Payroll_Control.php. The print magazine was mailed out to subscribers on January 15. The next issue will be published April 15, 2010.
About MHEDA
Founded in 1954, the Material Handling Equipment Distributors Association (MHEDA) is the premier source for manufacturing knowledge, education and networking. Through its member journals (http://www.TheMhedaJournal.org), e-magazines, newsletters, and industry wiki (http://www.wikimheda.org), MHEDA connects the manufacturers of storage and handling, lift trucks and conveyor equipment and distribution leaders for the purpose of delivering optimal solutions to the users of those products. MHEDA publications are the industry's voice for all matters related to the latest technology and the most up-to-date processes spanning the movement and storage of all materials. A 501(c)3 organization, MHEDA members span all of North America.
