Logistics expertise, cultural shifts lead to 50% increase in efficiency

Logistics expertise, cultural shifts lead to 50% increase in efficiency

Our client : Leader in Logistics Industry

Our client provides shipping services and is a market leader in contract logistics. It provides warehousing, managed transport, and value-added services at every link in the supply chain for customers in a variety of industries.

The challenge

Roles were filled, but productivity lagged.

With its focus on express shipping, our client needed to have a well-trained, dependable, and efficient workforce. Production rates at one of its southern facilities were hampered by low transition rates, as a significant number of assigned associates from previous temporary labor agencies did not transition to Employbridge. From there, the challenges snowballed. What started as a transition became a knot of recruiting and training challenges. While we could hire new talent, losing experienced workers lead to slowdowns and a loss of knowledge about processes and operations

The solution

Clearly defined goals, higher expectations, and clearing bottlenecks on the line.

The client wanted our team to be responsible for more than headcount; they expected us to meet production goals. To address this need, we called in our workforce solutions team to identify and solve production bottlenecks and create a plan in place for continued success. The plan included:

  • Cost Per Unit (CPU) Team. Once in place, our CPU Leadership Team was able to quickly assess the issues and
    struggles to obtain production goals while reducing talent turnover.
  • Production Line Improvements. The CPU team worked with the client’s engineers to conduct time studies on
    conveyance and set performance goals for each of the facility’s eight lines.
  • New Incentives. CPU leaders created an incentive program to encourage workers to minimize their downtime time and
    increase their productivity. Our client also benefited from this pay-for-performance model, which is based on agreed-upon KPIs.
  • On-site Leadership. We brought in team members with experience in logistics who quickly identified problems on the
    line, including a lack of packing materials at some stations and changes in workflow during the production process
  • Culture Changes. With the CPU model in place, employees were less likely to start work late, leave for breaks early,
    and return to work well after their breaks had ended. 

The outcome

From vendor to partner, the relationship continues to grow.

Solving production line problems helped us build trust and a strong partnership with our client’s engineers and leadership team. Our work has transitioned from a vendor-buyer relationship to a collaborative partnership, as the client trusts us to help them solve problems and improve production rates.

95%+ fill rate. Clearly defined roles and production goals translated to higher-quality candidates

50% increase in efficiency and productivity – from 63% to 95%.

30% turnover. This is in line with the client’s goal and better than the average rate in the industry

Productivity goals met. With informed line leads and the CPU model in place, our client consistently meets productivity
goals at this location.