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nGROUP Case Studies

results

 
  > fresh cut fruit processing

 
  > garment process

 
  > 3PL transload

  
  > consumer electronics

 
  > tier 1 auto assembly

 

 

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.

Ready to break through?

nGROUP's 3-point promise
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1Significant reduction in per unit labor costs (expect 10%+)

2Significant increase in production output at quality standards
         (expect 20%+)

3Significant layer of protection from
labor risks and co-employment liability


guaranteed results
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> Guaranteed Pricing
    nGROUP invoices the cost-per-unit
    agreed upon.

> Guaranteed Performance 
    nGROUP assumes the responsibility
    for throughput.

> Guaranteed Accountability
    nGROUP presents detailed    
    performance reports.


solutions for you
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nGROUP's unique performance laboratory collaborates with all business disciplines and functions to create integrated organizational solutions.

>  Executive Management
> Operations
> HR and Legal
> Purchasing

nGROUP specializes in manufacuturing 
and distribution operations. Call today to
discuss solutions for your challenges
:
877-202-9677