Capstone Performance Teams Provide Agile, Scalable Solution for Manufacturer
$7.2M
Labor Cost Savings vs. in-house or temporary labor
49%
Improvement in employee turnover
25%
efficiency improvement during project implementation.
Integrated support
with no startup delay during high seasons
Partner Profile
The world’s leader in tool manufacturing and engineered fastening systems, with 50 manufacturing facilities in the United States and a presence in over 60 countries around the world.
The Challenge
The manufacturer’s business model was highly dynamic, with large seasonal changes in production volume. The company was struggling to find a flexible, scalable solution that would accommodate both high and low volume seasonality. During high-volume seasons, full-time employees were suffering burnout, and temporary labor solutions were ineffective because of the training required; during low-volume seasons, overstaffing was driving up costs.
Our Approach
Capstone evaluated the situation, and determined that an agile solution would help drive costs down and improve employee burnout rates:
- Provide expert, trained, certified labor that can fill in around any area in the warehouse that needs additional help
- Empower DC with flexible workforce so it can run at optimal levels regardless of production volume
- Enable manufacturer’s full-time employees to be higher paid and more specialized, providing greater value and improving employee morale
Solution
Capstone implemented a plan to address the challenges that the manufacturer was facing:
- Flexible labor pool that can scale footprint up during peak volume, then scale down during times of low production
- Capstone labor works holidays/Sundays so full-time employees don’t have to, reducing burnout
- Specialized and trained Capstone associates can step in and do any job in the DC as needed
- Handle 7.4 million inbound throughput cases for the DC