Total Transformation: Northgate Market’s Remarkable Operational Excellence Journey
What happens when you do all the right things with labor? Learn how Northgate Gonzalez Market turned challenges into opportunity with an ambitious operational excellence and labor management plan to meet the future head on.
Challenges
Increased competition, fast-rising minimum wages, a changing workforce, new regulatory mandates, and the need for an internal infrastructure and process overhaul. With a comprehensive vision, Northgate went all-in on its commitment to operational transformation, service performance optimization and enabling growth.
Solution
After defining change management and other success factors, Northgate engaged Logile to deliver critical industrial engineering services and labor planning, execution and workforce management software to achieve the goal of operational excellence.
Results
Northgate’s remarkable labor management program outperformed expectations from the beginning and achieved outstanding results.
- Productivity improved approx. 23%
- Overtime hours reduced approx. 25%
- Direct labor percent approx. 15 basis points (bps) lower
- Much greater scheduling flexibility
- Full-time turnover decreased approx. 31%
- Scheduling effectiveness consistent at approx. 95%
- Associate accident rate 60% lower
- Slip and fall accident rate: 90% decreased
- Increased like-store sales
- $1 million in excess inventory removed from stores
- Improved customer satisfaction scores
Tom Herman
Even with dramatic wage increases, we still were able to reduce overall labor expense and reduce overtime. The labor management optimization with Logile solutions makes it easier to get buy-in and secure the funds that you need to do the things you want to do. You are able to drive change that you are creating through your workforce management program. It really helps you deliver what you say you want to deliver.
