Situation:
Distribution and logistics indirect labor costs continue to increase at client’s various facilities to the point where employees were significantly overpaid for the tasks they perform. Pay determination was concluded by comparison of clients wage rates to prevailing wage rate for the area for the tasks performed. |
Solution:
Group O was first brought in to review client processes, develop procedures and define the required skill sets to perform and manage the client’s indirect material distribution functions using client’s equipment. The required resources were then hired and trained with all tasks being measured against established performance metrics. |
Result:
A Managed Services contract was initially implemented with one client facility. This process was then introduced to (2) additional facilities with savings ranging from 20% to 50% on annual spend of $30 mil. |
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