Lean management has become a key strategy across supply chains, and warehouse operations are no exception. But implementing lean principles can feel like a contradiction: reducing waste often requires time, budget, and added complexity upfront—resources many warehouse leaders can’t spare.
That’s where the cost per unit (CPU) model enters the conversation. Far from a trendy buzzword, this performance-based workforce solution offers a practical, scalable way to align labor costs with output—supporting lean management goals without ballooning overhead.
Here’s how adopting a CPU model can help your warehouse reduce waste, boost productivity, and build a more agile workforce.
What Is a Cost Per Unit Model?
The cost per unit model is a workforce strategy that links compensation to productivity. Rather than paying by the hour, companies pay based on the number of units completed—whether that’s pallets moved, boxes packed, or products sorted.
It’s not about rushing or cutting corners. A well-managed CPU model includes clear productivity goals, performance tracking, and built-in quality standards. It’s designed to reward efficiency without sacrificing accuracy or safety.
Why the CPU Model Aligns With Lean Principles
Lean management aims to reduce waste, improve quality, and deliver more value with fewer resources. The CPU model checks all those boxes:
Five Key Benefits of a CPU Model in Warehousing
In a CPU model, workers are incentivized to work efficiently—not because someone’s watching, but because their pay reflects their output. This self-managed accountability often results in higher throughput and less micromanagement.
Instead of paying for idle time or variable shift productivity, you only pay for completed work. This not only improves cost control but reduces the inefficiencies that make hourly staffing less predictable.
Performance-based pay doesn’t mean cutting corners. In fact, teams managed under a CPU model typically follow strict KPIs that include error rates, return percentages, and damage prevention. Workers understand that quality is part of the performance equation.
The CPU approach introduces transparency and fairness. Workers see a direct correlation between effort and reward, which improves motivation and retention—especially when teams support each other to meet shared goals.
Instead of scrambling to manage fluctuating demand with traditional hourly staffing, a CPU model scales smoothly. You only pay for the work needed, and productivity remains stable even during high-volume periods.
How Eclipse Advantage Delivers Managed CPU Workforce Solutions
At Eclipse Advantage, our Managed CPU Model is tailored specifically for distribution and warehouse environments. We design cost-per-unit programs that:
Because the model tracks results at the unit level, you gain granular insight into workforce performance—helping you optimize workflow, identify bottlenecks, and target training where it’s needed most.
Why the Eclipse Advantage CPU Model Works
Unlike traditional warehouse staffing agencies, we don’t just send workers. We deliver a fully managed program—integrated into your operations—with the tools, talent, and oversight to help your warehouse operate lean and smart. The result:
Support Your Lean Management Goals With Eclipse Advantage
If your organization is pursuing lean management, the cost per unit model is more than a staffing tactic—it’s a strategic advantage. With Eclipse Advantage, you gain a proven workforce partner who understands how to implement and manage CPU solutions tailored to your operational goals.
Ready to see how a cost per unit model can reduce waste and increase warehouse efficiency? Contact Eclipse Advantage today to explore workforce solutions that deliver measurable results.