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.