Consumer Packaged Goods

Supply Chain Synergy: Vitality’s Path to Peak Performance

Overview

Fresh Starts, Stronger Chains

Vitality Brands is a leading consumer packaged goods (CPG) manufacturer with a supply chain team of 2,200 employees generating over $3 billion annually. As the company aimed to expand its market presence and improve operational efficiency, it became clear that the existing onboarding process for new hires was inadequate. This inadequacy led to a lack of confidence in managing logistics and supplier relationships, resulting in operational bottlenecks and missed opportunities for growth in a competitive landscape. Recognizing the need for improvement, the leadership team decided to revamp the onboarding program to better equip new employees for success in their roles.

The Challenge

Bottlenecks at the Starting Line

New supply chain hires faced significant challenges that impacted their effectiveness and overall team performance:

  • Lack of Confidence70% of new hires felt unprepared for supplier interactions within their first three months, affecting relationship-building.
  • Long Ramp-Up Time: The average ramp-up period was 6 months, delaying productivity and creating operational backlogs.
  • Slow Performance: New hires operated at an efficiency rate of only 15%, compared to 35% for tenured employees, indicating a steep learning curve.

 

These challenges led to a 25% decrease in overall performance metrics and an estimated $50 million in missed savings opportunities. Additionally, an 18% turnover rate among suppliers managed by new hires caused instability in relationships. This situation highlighted the urgent need for a comprehensive training and onboarding program to boost new employees’ capabilities and confidence in their roles.

Our Approach

Blueprint for Brilliance

Novalta collaborated with Vitality’s executive leadership team to assess talent capabilities, revealing critical insights into the onboarding process. The assessment found that new hires with under three months of experience caused a 30% drop in performance metrics and a 15% increase in supplier turnover, destabilizing supplier relationships. Additionally, these employees demonstrated only 40% proficiency in key skills compared to 80% for their experienced counterparts, highlighting a significant competency gap. This data emphasized the urgent need for a targeted onboarding program to equip new hires with the necessary skills for success and to enhance organizational performance.

The Solution

From Day One to Done Right

Novalta developed a new onboarding process with innovative strategies to enhance new hire readiness and performance, including:

  • A four-week Minimum Viable Product (MVP) for two distinct onboarding programs to streamline training.
  • Clear mapping of essential roles and responsibilities in Supply Chain, Procurement, and Logistics for new employees.
  • A competency matrix defining core skills for targeted training in critical areas.
  • Customized learning paths focused on topics like supply chain processes, vendor management, logistics, and data analysis.

 

These strategies aimed to equip new hires with the skills and confidence needed to succeed and contribute to the organization’s success.

The Impact

Momentum Unlocked

The new onboarding program yielded impressive results, significantly boosting operational efficiency and employee performance:

  • Ramp-up time decreased by 60%, from 6 months to 2.4 months, allowing new hires to contribute sooner.
  • Access to training materials increased from 20% to 95%, providing essential resources for development.
  • New hire efficiency improved from 15% to 30%, indicating a notable productivity increase.
  • Supplier performance metrics rose by 25%, resulting in an estimated $75 million in cost savings.
  • Supplier turnover rates dropped from 18% to 10%, fostering more stable partnerships.

 

These outcomes highlight the program’s effectiveness in enhancing new hire experiences and strengthening the organization’s operational capabilities.

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