Case Studies
Fresh Cut Fruit
Processing
Results:
Reduced co-employment liability, 5-50%
reduction in unit-labor cost, Pounds per man-hour improved 19-118% in fruit, Pounds per man
hour improved 23-144% in vegetables, 5-11% improvement in yield, Reduced customer complaints,
Reduction or elimination in overtime.
Story: The client is a global processor of fresh cut produce with
multiple plants in North America and 10,000+ employees worldwide. They were concerned with liabilities associated with managing a large
workforce. Employment of the
workforce had been outsourced through a staffing agency but the client wanted to outsource the
management of their production as well. Their staffing partner was not capable of delivering the
level of management expertise they required, and a full blown “co-packing” agreement was not
desirable due to asset utilization and potential damage to the
brand.
Success: nGROUP developed a unique labor model specifically
for the client’s business that effectively mitigated co-employment
risk. nGROUP’s workforce
management systems substantially improved productivity, quality and
yield. The net effect is a more
competitive and profitable business, which has led to nGROUP’s expansion to multiple
locations across the nation.
Garment Process
Process: Flat to Hang
Garment Processing for Retail Distribution
Results: Labor
savings of 21%, Output improved by 25%, 90% reduction in overtime. Increased employee earnings by
9%
Story: Retailers are facing inflationary pressures while
attempting to engage increasingly cost sensitive consumers. This client, one of North
America’s largest retailers of value priced apparel and accessories with over 500 stores in
North America, was no exception. Their distribution operations are subject to seasonal peaks
resulting in low efficiencies and quality issues due to the influx of untrained temporary
labor and overtime in excess of 30%. State mandated wage increases resulted in recruiting and
retention challenges in a competitive labor market, applying additional pressure in labor
costs.
Success: The client outsourced labor intensive functions to nGROUP relieving the
pressure of an 18% hike in wages and providing an additional 21% reduction in their cost per
unit. Budgeting and cost forecasting have been dramatically simplified thanks nGROUP's
outsourcing model and the internal management resources are freed up to dedicate their time
to projects that provide additional value, such as vendor compliance charges that garner
nearly $50k per year. The previous weekly production record was nearly doubled (800K units to
1.4MM units) eliminating the anticipated need to add shifts or open other facilities.
nGROUP’s pay for performance program eased recruiting efforts by increasing wages 15% beyond
the base pay.
3PL Transload
Results: Reduced unit-labor cost 14%, Increased piece per
outbound container by 10%, thereby increasing load factor, $500K Reduction in claims, Reduced
un-manifested PO’s from 5.63% to 2.1%, Facility has the best LOS performance in its
history.
Story: This 3PL was having multiple issues with one of their
largest clients and most demanding, which also happened to be one of the largest retailers in
the world. The management team struggled to get consistency from shift to shift and seasonal
peaks brought a slew of quality claims that killed profitability on top of typically low
productivity. Supervision was a rotating door and the workforce was frequently left to
develop their own processes.
Success: nGROUP brought a standardized approach to
production that relied on processes rather than people; instituting SOP’s, a proper induction
process, and a training program. Quality and productivity shaped up rapidly. Our incentive
structure increased individual earnings and reduced turnover. LOS metrics exceeded all
customer expectations for the first time in the facility’s history and profitability reached
an all time high.
Consumer Electronics
Process: Receiving, Replenishment, Picking, Packing,
Shipping
Results: Reduced unit-labor $3,000,000+ or 30+%.
Increased shipping quality through peak season and achieved
100% for the first time in the facilities history. Increased building’s capacity
through redesigned floor plan; eliminating the necessity of rented space during seasonal
spikes, this project alone saved another $1,000,000.
Story: For the first time in this client’s 55+ year history
the company lost money. nGROUP was engaged as part of a corporate mandate to reduce cost
throughout the organization. After a successful startup in the receiving department the
decision was made to transition all processes in their largest North American DC along with
their entire full time workforce to nGROUP.
Success: The total savings goal for the entire supply chain
group was $20,000,000. nGROUP was able to contribute a large portion of that savings while
providing improvements in service levels. 90% of the workforce was maintained through the
transition and the client experienced no lapse in quality or
productivity. nGROUP has been nominated to receive the President’s
Award from this $75+BB consumer electronics giant and even greater benefits
will be delivered as we expand to other operations.
Tier 1 Automotive
Assembly
Product: Door, mirror, and steering column
components
Results: 30%+, $670,000+ labor savings, 30%+ increase in
productivity, 50% decrease in overtime, Redesigned production layout for improved work flow,
20% increased wages for associates
Story: This wholly owned subsidiary of one of Japan’s
premier auto manufacturers was looking for a partner to help them take it to the next level
by outsourcing a large piece of their business. In doing so, they hoped to reduce cost,
reduce internal headcount, and make space available for new equipment. nGROUP worked with
them to benchmark their current performance in two of their plants, put together a business
case for unit cost, develop a plan to transition production to a new area within the plant
that would be dedicated to unit cost, and design a floor layout for that area that met their
needs.
Success: nGROUP maintains a “plant within the plant” where
we manage production of multiple components within the client’s four walls. The layout for
this area, which fit all equipment, personnel and inventory areas into a smaller space than
before, was designed by and implemented by nGROUP engineers. Through the partnership the
client has not only reduced cost and increased productivity but also improved inventory
management by further developing their Kanban system, reduced errors through root cause
analysis and subsequent Poke Yoke, been able to reduce indirect labor cost, and freed up
internal management resources to focus on other parts of the business.
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