Partner Profile
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
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
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
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