Case Study: 2
Control Turnover - Improve Operating Results
A clothing distribution center receives branded apparel produced
around the world for distribution to retail customers throughout
the UK. The facility uses a flexible staffing approach to keep fixed
costs at a minimum and to manage fluctuations in demand. A temporary
workforce performs the receiving, forklift, selecting, packing and
shipping functions.
As the local labour market tightened, the client started experiencing
high turnover in the temporary workforce. During that same year,
management made a number of material handling enhancements to help
reduce cycle time and cost-per-unit. However, the investments made
in automating the facility did not yield the desired results because
of the high turnover the client was experiencing in its temporary
workforce. Management decided to consolidate its staffing suppliers.
Our Solution
We established an on-site office with a manager to oversee the
entire process. After "working the floor" themselves,
our on-site managers now provided training, supervision and counselling
to our assignment employees and participated in the client's operational
meetings. To help reduce turnover, we customized selection, screening
and evaluation and put in place pre-assignment "real-world"
orientations and tours. We also set up quality assurance and employee
recognition and reward programs.
Results
- Turnover was reduced from 60% to 5% over a 45-day period.
- Cost per unit dropped by 25% over a four-month period.
- The client's operations managers have more time to focus on
strategic issues.
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