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An Electronic Product Solutions Company

5/19/2011 9:00 AM
Situation
Headquartered in Memphis, TN, this electronic product solutions company uses considerable light industrial temporary labor in markets throughout the country. The client desired improvements in efficiencies and temporary labor cost savings but had reservations about a national transition.

Challenge
The client faced several key challenges within its current on-site, branch-based temporary staffing program. Due to high absenteeism and temporary labor shortages, they incurred significant overtime costs to ensure on-time delivery to their customers. Additionally, high turnover, averaging over 10% weekly, lead to increased training costs. Client Management teams spent significant time managing the temporary staffing program due to inadequate on-site floor coverage by the incumbent suppliers. The overall goals of this staffing initiative were to increase cost competitiveness, improve fill rates and retention, and decrease the client’s management burden with the temporary labor group.

Solution
Staff Management | SMX secured the contract to provide a temporary staffing solution across five sites nationwide, exceeding $30 million in annual temporary labor spend. Prior to implementation, Staff Management | SMX gathered information about each site’s goals and labor costs, resulting in a Value Proposition analysis unique for each site. Staff Management | SMX then collaborated with the client to develop an action plan whereby Staff Management | SMX would transition sites sequentially over several months until all sites were successfully converted. The ability for Staff Management | SMX to proceed to subsequent implementations was contingent on the ability to deliver smooth transitions while meeting service levels, with no disruptions to production.
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