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Case Study: Midsize Distribution Support Center makes adjustments to meet growing demand quickly and efficiently

 

Operational Success as growing warehouse & distribution facility struggle to adjust to demand

 

Key Process Elements

  • Provide associates and leadership adjust to rapid company growth
  • Strengthen partnerships for mutually beneficial collaboration and financial success

 

The Challenge

Our customer, a midsize 50,000 square foot warehouse and distribution facility services the entire southeastern United States for an industry leader in table wares. Corporate executives implemented several directional modifications to diversify their sales position in the marketplace. This directional shift led to a significant increase in inventory and demand.

In response to inventory increases and growing distribution needs, this customer ramped up labor over time including weekends with their existing employee base. This led to exorbitant labor costs and employee morale plummeted.

 

Our Solution – Phase I

Our team introduced and implemented quality associates to effectively absorb staffing needs. As the business needs changed in response to company growth so did staffing. Over time the number of our temp employees outnumbered internal employees which overwhelmed managerial staff. Supervision of employees was lacking and turnover soon followed.

SelecSource installed a time keeping piece to assist our customer with employee time management and eased the ability to monitor employees. Furthermore, branch representatives visited the facility with increased frequency and higher visibility to ensure employee efficiency.

 

Our Solution – Phase II

While progress was continuing to be made there was still something missing and we worked closely with our partners – determined to reach a mutually beneficial solution. Lead shift supervisors were hired and placed to facilitate associate communication, supervision and oversee execution of fluctuating daily demands.

 

Customer Benefit

Introduction of shift supervisors dramatically improved production, increased performance standards and kept turnover at a minimum. 1st shift was able to increase the number of shipments by 10% and 2nd shift saw a 50% production increase and a 25% turnover decrease.

Placing strong leadership at each shift allowed increased productivity and enhanced our partner relationship. As a result, 80% of 2013 new hires were placed by SelecSource.

  • Assist Corporate with onsite HR needs (hiring, training, monitoring)
  • Increase Production efficiency
  • Reduce Turnover 

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