A Fortune 500 company called from Minneapolis on a Monday asking for help filling a Warehouse Manager position in St. Louis. The company had been increasing inventory levels trying to improve flagging service levels but the extra inventory just made it more difficult to find and pull the proper product resulting in the service levels continuing to decline, causing a flood of customer complaints. The company followed our suggestion to upgrade the Warehouse Manager credentials when the poorly qualified incumbent resigned out of frustration.
The company agreed to schedule interviews in St. Louis for our candidates the following week, local candidates on Monday and candidates who would need to fly in, on Wednesday.
We built a team of consultants who recruited heavily both within the St. Louis area and nationally and we had our short list for the very next Monday and Wednesday. Interviews on Monday produced both a frontrunner and a backup candidate, so Wednesday's interviews, requiring air travel and candidate relocation, were cancelled. The decision was made and the offer was accepted by the leading candidate, who happened to be available to start immediately. He actually started the very next Monday, two weeks from their initial call for help.
During the placement debrief, the company gave us an unsolicited testimonial recapping how we had saved them money. They had budgeted $20,000 for relocation and no relocation was required, and we had found a Warehouse Manager for $10,000 less than they were prepared to pay. They gave us credit for $15,000 for finding someone in two weeks while they had expected the search to take six weeks, as lost opportunity cost.
The real savings was accomplished over the next year. The new Warehouse Manager had committed to reach the targeted service level and also remove $1,000,000 from their inventory. He actually reduced their inventory by $2,000,000 and improved service 10% above their targeted level. In addition to saving the $2,000,000 and the $360,000 annual carrying cost on that inventory, our client's customers were happy once again.Back to top
A $300MM revenue Atlanta based manufacturing division of a $3B revenue client had a business plan to form a new Engineering Services venture to be composed of a General Manager, two Engineering Specialists and a staff of four technicians and drafters. This business venture was expected to be financially in the black within a year and to grow to $12MM revenue and $3MM profits in three years.
In concurrence with the Company's Business Development Team we agreed that the company should try to find a General Manager from within the parent company. This would give this team leader internal-company-knowledge of other support networks within the company as well as the ability to call upon these internal sources for help, advice and internal services. As a search firm we agreed to take this General Manager job assignment on a contingency basis in order to have a backup from the outside in case no qualified internal candidate could be recruited to move to Atlanta for this assignment.
Since this was a new direction for the company, we knew the two Engineering Specialists did not currently exist within the company, so Professional Search of Atlanta took these two assignments as retained searches to gain critical speed and reliability of completion.
We agreed to fill the technician and drafter assignments as contingency assignments because we expected one or two of the four could possibly be found inside the company.
Because expected revenue levels were known, we could calculate the lost opportunity cost being missed until the team could be formed and become functional. $3MM profits in year 3 equates to $250,000 per month, time adjusted to the current year.
Within two months the group was up and operating. Within nine months the group was in the black and profitability stayed on target after that.Back to top