Case Study: A Seasonal Workforce
The Scenario
Company XYZ currently has a product which is manufactured only six months out of the year. To support that product, they have dedicated warehouse space, a full-time manager, and use temporary or part-time help to produce it.
| Warehouse (10,000 sq ft) | $24,000/yr |
| Full-time manager with benefits | $35,000/yr |
| Part-time help for 6 months (15 people at $8/hr plus taxes and expenses) |
$156,000 |
| 500,000 units produced at a variable cost | (variable) |
| TOTAL COST | $215,000 |
The S&B Solution
By freeing the customer's warehouse and using S&B's warehouse instead, we were able to eliminate the expense and need for the full-time manager. Our staff, used only on an as-needed basis, replaced the part-time help. We were able to provide a fixed cost per unit and reveal significant annual savings.
| Used S&B warehouse only as needed | (included) |
| Used S&B manager only as needed | (included) |
| Used S&B staff only as needed | (included) |
| 500,000 units produced at a fixed cost | $.32/ea |
| TOTAL COST | $160,000 |
| ANNUAL SAVINGS | $55,000 |
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