Insights | Kelly Services United States

BPO model achieves $6.5MM in cost savings for semiconductor manufacturer.

Written by Admin | Jul 19, 2024 7:44:39 PM

A leading semiconductor manufacturer needed help addressing complex staffing needs across multiple states. Costly overtime rates, high turnover, frequent safety incidents, and staffing gaps were hampering operational efficiency - resulting in workforce instability and reduced productivity.

Costly overtime and turnover reduced efficiency and productivity for a leading semiconductor manufacturer.

Since 2017, Kelly has partnered with a leading semiconductor manufacturer to address significant and complex workforce challenges. High overtime rates strained budgets and morale, while elevated turnover rates complicated workforce stability. In tandem, frequent safety incidents negatively impacted productivity and compliance. Additionally, maintaining a steady fill rate proved challenging, leading to staffing gaps. These issues collectively hampered the company's operational efficiency and overall performance, highlighting the need for a strategic and targeted intervention to stabilize and improve the workforce.

BPO model resolved operational issues and increased headcount.

Kelly's strategic approach addressed these challenges head-on. Kelly recruited managers with semiconductor industry experience to lead teams, building trust and gaining access to crucial customer IP materials. By collaborating closely with customer operations and management, Kelly was able to refine workflows and resolve problems. Kelly's expansion efforts were significant, growing from fewer than 10 Level 2 technicians in 2018 to over 400 by 2022, extending the footprint into Oregon and New Mexico. This comprehensive strategy ensured a
specialized and effective response to the manufacturer’s needs.

$6.5MM in cost savings and turnover reduced to <6%.

Kelly's interventions led to impressive outcomes and high client satisfaction. Kelly has helped the client achieve $6.5 million in cost savings since 2020 through reduced overtime and optimized staffing. Headcount grew from fewer than 70 to over 650 skilled professionals across three states. Turnover rates dropped significantly - from traditional rates of over 20% to less than 6% - minimizing the impact of turnover on overall operations. Overtime was reduced, enhancing work-life balance, and safety measures improved, lowering incident rates.

Client satisfaction soared with better operational visibility through Kelly's "Optimize" system, enabling the client to focus on strategic initiatives. This partnership exemplifies the positive impact of targeted workforce management on high-tech manufacturing.