The operator lost almost $2 million per year due to inventory damage and high defect rates in one of its key locations. Private Equity firm, with majority ownership stake, reached out to Tenzing for Expert help.
Employee retention rates were low, leading to staff shortages, and a skills gap across the operations.There was also a wide gap in performance (speed, accuracy, avoiding damage and defect) between the highest performing employees and even middle level performers.
Tenzing developed an operating platform to track KPIs, create standard operating procedures (“SOPs”), track compliance with SOPs, and speed, and implement a Warehouse Management System.
Employees were interviewed to determine the causes of employee turnover and barriers to helping the best practices of top-performing employees take hold across the operations.
Hiring, training, and performance management practices were modernized, and the compensation system was overhauled.
Customer claims for damaged or defective inventory were reduced by over 80%.
The Operator saw retention rates increase to over 90% in 120 days.
Thanks to reduced customer claims and increased retention rates, the client saw costs due to damaged inventory fall from $2M per year to $200,000.