The Situation

A Fortune 15 global manufacturer’s parts distribution center located in the Midwest, was experiencing significant performance issues with their decentralized staffing model to meet their contingent staffing initiatives.

A significant staffing shortfall – less than 60% of the required headcount goal – led to chronic delays in fulfillment and increased labor costs due to excessive overtime. Additionally, mandatory seven-day work weeks, necessary to meet fulfillment demand, contributed to a low retention rate.

The Solution

“As a 3PL provider, we are experienced running operations for diverse industries,” said Dan Farne, VP of Account Management, “and Exegistics Resource Solutions (ERS) was prepared to address the staffing challenges that the Fortune 15 company was experiencing.”

To meet the day-to-day key performance metrics and sustain optimal efficiencies, ERS launched an onsite staffing solution within an aggressive timeline and a dedicated onsite expert, to source, ramp up and oversee the company’s contingent labor program, including selecting qualified sub-vendor partners to meet staffing requirements.

According to an HR executive for the parts distribution center, “Having partnered with ERS, we’re making solid upward trends in our headcount as we are aiming toward 250 which is critical for our day-to-day operations and work culture.”

In just a short period of time, ERS achieved:

  • Increased headcount over 200% by first conducting an in-depth market and industry study, then customized an aggressive recruiting action plan to meet the headcount goal
  • Reduced turnover 64% by building a sound talent pipeline, minimizing overtime and an overworked labor force

“When executed well, operational staffing solutions save time and allow our customers to focus on their core business,” added Farne. “We’re proud of our track record for reducing costs and improving ROI.”

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