Adapting or Transitioning an Operation

DSC helps a Fortune 500 food company successfully and seamlessly transition the management of a troubled large-scale operation from another 3PL provider to DSC, improving team morale, service and quality.
A Fortune 500 food company requested that DSC assume leadership of one of its existing logistics centers, which was being managed by another 3PL service provider at the time. DSC coordinated the transition from the incumbent provider to DSC, achieving a seamless cutover. Upon assuming leadership of the location, DSC’s improvement efforts yielded service and employee retention gains at the logistics center.
Situation

A Fortune 500 Food company was experiencing service and quality issues at one of its logistics centers that was under management by another 3PL provider. The site was experiencing issues in the areas of staffing and equipment, service and quality, housekeeping and sanitation, yard management, volume backlog and employee overtime. DSC was asked to assume leadership of the operation based on our expertise in coordinating large-scale transitions between providers and our track record for high-performance operations.

Solution

In a preliminary phase before cutover, we migrated other customers from an existing DSC operation and consolidated them in this customer’s building. This filled significant empty space for our customer and created a multi-customer operation where all customers could benefit from shared DSC resources. We spent approximately three months migrating these customers into the building, cultivating relationships with the supervisors and observing the operation. During this period, we worked with the incumbent provider team members cooperatively and collaboratively to coordinate the next phase of the transition.

In the cutover phase, we managed hiring efforts using an off-site location near the building to interview employees and take them through the DSC hiring process, including background checks and screenings. We provided flexibility so that employees of the incumbent provider could be interviewed without interruption to their work schedule. We introduced our DSC culture in the workplace and implemented employee relations activities. Over the period of one weekend, we successfully and seamlessly transitioned leadership and management of the building over to DSC.

After assuming leadership of the operation, we worked to resolve issues of mandatory overtime and labor planning. Under the previous provider, mandatory overtime was in place every working day in the year. For some employees, this meant working overtime for three consecutive months. Within the first month, we eliminated mandatory overtime and replaced it with voluntary overtime. We trained supervisors on DSC’s approach to daily planning, the importance of on-site, on-floor presence and our commitment and promise to employees.

In addition to smoothing out the work planning and establishing new leadership norms, we also made improvements in managing inbound trailers in the yard, which had been in a condition of significant backlog and congestion. To address prior neglect of sanitation and repairs, we thoroughly cleaned the building and implemented DSC’s pest control and sanitation program.

Result

DSC successfully transitioned existing employees in this operation and achieved uninterrupted throughout the transition. Through our efforts, we were able to retain seasoned staff with 10-15 years of experience in the operation and reduce turnover rates to less than 1%. We developed trust with the employees who had experienced several management changes over the years. We also drove improvements in the operation. After one week of managing the operation, we succeeded in reducing the number of trailers in the yard from 126 to 14. We also brought the building to the level of cleanliness required for a food operation. We achieved American Institute of Baking (AIB) certification for the building within one year.