A Louisville-based 3PL company found their large-scaled holiday project behind on production due to turnover and labor inconsistencies and needed a partner who offered flexible support with production, labor, and leadership to oversee the project.
COST-PER-UNIT SOLUTIONS
Fixed Cost-Per-Unit (CPU) Model Saves Time + Money
OVERVIEW
The Challenge
HJI, A Louisville-based 3PL company, annually manages a large-scaled holiday project for their partner. Due to turnover and inconsistencies with labor, production goals were slipping and forcing their Leadership team to work on the production floor daily to meet goals.
When they approached Acción Performance, they were looking for flexibility in support, consistency in labor, and additional leadership capacity to optimize.
The Solution
By providing a custom cost-per-unit model, we were able to lock in a fixed rate for our client. This allowed pricing to stay the same even as production ramps-up. We eliminated staffing stressors by suppling an experienced workforce onsite at their facility to manage the workload. Our leadership oversees all training and adheres production to company standards, eliminating turnover with low productivity.
The Results
Acción Performance customized a cost-per-unit-model to lock in a fixed rate for our client, saving them costs while we built processes to meet the client’s target production volume – and then exceeded those metrics.
• Our fixed CPU model saves on costs and forecast budget.
• Avoided training and hiring costs by providing skilled teammates for each shift
• Scaled our production efficiencies as needed to meet demand.
• Exceeded production expectations one month ahead of schedule.
Learn more about our services and how we create custom supply chain solutions by clicking here or contact us now for a quote.