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)
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

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