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What happens when you do all the right things with labor? Learn how Northgate Gonzalez Market turned challenges into opportunities 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
