Partner Profile

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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

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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

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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

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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

Results

$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