ngroup


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Achieve More.
Risk Less.

Case Studies

case studies

nGROUP achieves extraordinary results for world-class companies and start-ups through its partnership philosophy, efficiency and performance expertise, and specialized onsite outsourcing business model. Our mission is to help companies compete and win. With nGROUP clients achieve more and risk less in their labor-intensive operations.

Below are just a few examples of what clients have achieved with nGROUP as their performance partner.


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
• 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: This client, one of North America’s largest retailers of value priced apparel and accessories with over 500 stores in North America, was facing inflationary pressures while attempting to engage increasingly cost sensitive consumers. 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 in thanks to nGROUP's outsourcing model, and the internal management resources are now free to focus on projects that provide additional value, such as vendor compliance charges that garner nearly $50k per year. The previous weekbeyondly 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 demands by increasing wages 15% 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 its largest and most demanding clients, who 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 numerous 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
• Eliminated the necessity of rented space during seasonal spikes, saving another $1,000,000

Story:  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%+ increase in productivity
• 50% decrease in overtime
• Redesigned production layout for improved workflow
• 20% increased wages for associates

Story: This wholly owned subsidiary of one of Japan’s premier auto manufacturers was looking for an outsourcing partner to help them take it to the next level. In doing so, they hoped to reduce cost, reduce internal headcount, and make space available for new equipment. nGROUP worked with management to benchmark current performance in two plants, put together a business case for unit cost, developed a plan to transition production to a new area within the plant that would be dedicated to unit cost, and designed a floor layout that met their needs.

Success: nGROUP maintains a “plant within the plant” where it manages 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 reduced cost and increased productivity, and also improved inventory management by further developing their Kanban system. In addtion errors have been reduced through root cause analysis and subsequent Poke Yoke, indirect labor costs have been reduced, and internal management resources are now free to focus on other parts of the business.


logos


industry success


>
Fresh Cut Fruit Processing



> Garment Process



>
3PL Transload



>
Consumer Electronics



> Tier 1 Auto Assembly



 

  

 

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