The Challenge
Our client operates in a highly competitive environment and was burdened with a tenured expensive workforce. They were charged with reducing costs in the facility by over 1 million dollars a year without compromising service or FDA regulations.
The Approach
TRC worked side-by-side with the customer to develop a co-sourcing solution to generate cost savings and increase productivity by developing a transition plan to convert 75 permanent jobs to contract labor positions without disrupting service levels. Some features of this plan include:
Productivity Increase
- Benchmark against other companies in industry through WERC and client is at top of the tier in the categories of productivity, reduction in errors, and efficiencies due to TRC’s employees.
- TRC’s open applicant tracking technology builds a pool of qualified candidates to reduce time to fill positions from 2 weeks to 2 days or less.
- Overall productivity has increased by 40% through the use of TRC’s employees.
- TRC understands client’s deliverables and processes and makes informed recommendations on process enhancements. For example, finished recent project in 2 weeks vs 60 days and saved client $100K in hard dollars.
Cost Savings Increase
- Provide Onsite Managers to oversee day-to-day operations of the facility and workforce of 170, recruit candidates and acts as an HR Liaison to client.
- Developed recruitment plan aimed at potentially backfilling all 75 positions, which included cross training 30 people in 30 days in advance, to be prepared to step in by bringing the flexible workforce early if needed.
- Provided base rate increases to ensure continuity and transitioned 13 employees.
- Developed a severance policy with client to ensure transitioned employees would leave on good terms.
The Results
TRC has maintained a successful relationship with the client for 7 years, because of documented
cost savings and performance enhancements. As a result, we are in negotiations with their
Canadian distribution center.
- Client met all key performance indicators ahead of expectations (4 days after transition).
- Dramatic increase in productivity has lead to dramatic decreases in required FTE’s.
- 170 employees currently working.
- Less than 4% turnover.
- Yearly hard dollar cost savings in excess of $1.2 million.
- After 2 weeks, TRC employees met or exceeded 100% productivity measurement. Previously,
the average was 60%
