In the dynamic world of logistics and warehousing, maintaining operational efficiency while ensuring employee safety can be challenging. Diversified Logistics has made significant strides in this area from 2021 to 2024 by integrating a cutting-edge safety technology, modONE, alongside a deeply engaged safety leadership approach. This combination has not only enhanced their safety culture but also brought about substantial financial savings.

modONE: A Key Factor in Reducing injuries and Associated Costs

The introduction of modONE marked a turning point for Diversified Logistics. This technology is designed to enhance safety protocols, and streamline responses. modONE has been one of several reasons that Diversified Logistics, has realized a marked reduction of workplace injuries and associated costs.

Here is how modONE greatly assisted in reshaping Diversified Logistics safety landscape

• Reduction in Injury Claims: Key injury types such as strains, which are prevalent in logistics due to lifting and moving heavy objects, saw a dramatic decrease. Strain-related claims dropped from 9 in 2021 to 4 in 2022.

• Elimination of Severe Accidents: High-risk incidents, such as those classified under 'caught in or between', were reduced to zero by 2022, showcasing the effectiveness of modONE in mitigating severe workplace hazards.

Financial Outcomes: Significant Cost Reductions

The financial implications of these safety improvements are substantial:

• Overall Claim Reductions: From 2019 to 2022, the frequency of Lost Time and Medical Only claims decreased by 61%.

• Managed Care Savings: The implementation of modONE to increase the employees knowledge base has measurably contributed to a total savings of $1,058,115 in managed care, accounting for 75% of the total billed expenses.

• Lower Insurance Costs: The reduction in the number and severity of claims has directly impacted the company's insurance premiums, with fewer claims leading to lower costs.

Benchmarking Against Industry Standards

When compared to industry standards, Diversified Logistics stands out significantly:

• Lower Lost Time Frequency Rate (LTFR): The company's LTFR is 19% lower than the National Council on Compensation Insurance (NCCI) peer average.

• Reduced Medical Only Frequency Rate (MOFR): Their MOFR is 28% lower than industry peers.

• Total Frequency Rate (TFR): The overall frequency rate, which combines LT and MO claims per $1M in payroll, is 25% lower than the NCCI peer average rates.

These metrics demonstrate that raising the overall employee knowledge level when it comes to safety can significantly impact a company’s bottom line via a reduction in incidents and accidents.

Leadership and Cultural Shift

The technological advances would not be as effective without the support of proactive safety leadership. The management at Diversified Logistics has been pivotal in:

• Promoting a Culture of Safety: Engaging with employees at all levels to prioritize safety, ensuring widespread adoption and effective use of modONE.

• Facilitating Training and Development: Continuous topic specific and high impact training sessions facilitated by modONE raises overall safety awareness. This awareness changes behavior and contributes to a reduction in accidents.

• Encouraging Incident Reporting: Through modONE Diversified Logistics has been able to educate its employees of the importance of timely reporting of all incidents and accidents which has enabled Diversified Logistics to better target specific workgroups with messaging; which has had a positive reduction impact on all levels of injuries.

Looking Ahead

The journey of Diversified Logistics from 2021 to 2024 is a testament to the power of integrating advanced technology with a committed leadership team. As they move forward, the focus remains on leveraging these tools and strategies to further enhance safety measures, reduce costs, and maintain a competitive edge in the logistics industry.

Conclusion

Diversified Logistics' successful reduction of injury rates and associated costs and the engaged safety leadership of the management team serves as a model for other companies in the industry. This approach not only protects employees but also provides substantial financial benefits, showcasing a scalable strategy for balancing safety with operational efficiency.