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Flexible Workforce Alignment

Retail

A Fortune 100 Retailer used a combination of overtime, overstaffing, and temporary labor in their distribution centers to manage variable work demand. 

Challenge

The Distribution Center was challenged with effectively managing staffing levels and controlling labor cost through their seasonal work demands. Historically, DC leadership utilized a combination of working overtime, remaining overstaffed, and deploying temps but the cost of unproductive hours, excessive overtime, and sharp drops in productivity presented a need to find the right labor balance to optimize the operation’s efficiency and minimize costs.

variable work demand with flexible workforce alignment

Solution

Insource implemented a managed, performance-based flexible workforce to align with the DC’s Labor Management System.  This alignment allowed Insource to measure and manage worker performance while providing the customer; budget certainty, visibility, and the ability to hold Insource accountable for performance against the DC’s pre-determined engineered standards.

Through natural attrition, Insource developed a team to counter turnover, absenteeism, and paid time off while giving the DC a dedicated resource to effectively flex with work demands. Insource also provided onsite leadership to manage staffing levels, drive performance, maintain the Insource OSHA log as well as administered on-site training and certifications.

variable work demand

Result                                         

The DC’s leadership was instantly relieved of the daily administrative and training burden associated with the constant flow of new temporary associates. The customer gained the ability to more accurately budget labor costs and avoid overtime. Employee morale increased by eliminating short work weeks, temporary layoffs, and no longer requiring overtime in peak seasons. In addition to human resource benefits, with Insource’s help the operation achieved its overall goal of becoming more efficient and cost effective.

results of flexible workforce alignment                      

  • Productivity exceeds temporary staffing agency by 36%
  • Productivity levels were 117% of engineered standard
  • Worker turnover rate is 70% lower than traditional temporary staffing agencies
  • Labor cost is reduced by 19% for every straight time worked.
  • Labor cost is reduced by 46% for every overtime hour avoided.
  • By maintaining our own OSHA 300 log – 126,000 man hours worked annually with ZERO safety liability

The Challenge of Including Temp Workers in the Pay-for-Performance eBook

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    “Insource provides us with the ability to grow assembly capacity through their performance based workforce solution that replicates the processes, controls, and ultimately the performance of our current operation.”

    Plant Manager, Moen Inc.

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    What they’re saying

    “Simply put, what separates Insource from the pack is they don’t just talk the talk. They will back up their performance in writing with financial guarantees. They are True Partners.”

    3rd Party Logistics Company President

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    What they’re saying

    “Insource is truly looked upon as a valuable strategic business partner. We know things will continue to evolve and we know that we can count on Insource to be right there with us.”

    Fortune 500 Distribution Center Manager

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    What they’re saying

    “With Insource, we are able to drive costs savings in excess of 23%. Insource exceeded expectations all around, our customers and I all appreciate the value your services deliver.”

    Textile and Homegoods Director of Distribution