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Client Profile A Midwest-based personal products manufacturing company.
Issues/Challenges
- Increased Labor Costs: Overtime costs exceeded 17% of total labor hours due to poor fill rates, and there was an inability to effectively recruit an English speaking workforce
- High incidence of injuries due to poor schedule design and fatigue
- With no spending initiatives on Historically Underutilized Businesses, the client faced further cost exposure
- Co-Employment risks; production management was too involved in crewing and tracking performance, which led to co-employment exposure
- Staffing provider had insufficient interaction with the contingent work force
- Poor service levels, resulting from ineffective on-site service coordination, including the break relief program
- Labor fill rate was well below expectations
- Lack of consistency in service and minimal reporting
- Difficulty developing or implementing process improvements
Solution Staff Management implemented a customized staffing solution that resulted in:
- Reduced overtime and overall labor costs
- Increased on-site service effectiveness
- Improved workforce quality and retention
- Created standardization with client's other sites, resulting in national consistency and shared learnings
- Increased communication through improved reporting and weekly, monthly, and quarterly reviews
- Led to recommendations for continuous improvement
Results Staff Management successfully:
- Yielded savings of more than $1,800,000 over a three-year period, or 14% of total contingent labor spend
- Resulted in 20,000 fewer labor hours among seven of the client's facilities
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