TrueBlue, Inc. (TBI): Business Model Canvas [11-2024 Updated]
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TrueBlue, Inc. (TBI) Bundle
Discover how TrueBlue, Inc. (TBI) leverages a robust Business Model Canvas to drive its staffing solutions and recruitment outsourcing services. By focusing on key elements such as partnerships, activities, and value propositions, TBI effectively meets the diverse needs of its clients across various industries. Dive deeper to explore the intricate components that make up TBI's business strategy and how they create value in a competitive market.
TrueBlue, Inc. (TBI) - Business Model: Key Partnerships
Collaborations with insurance carriers for workers' compensation
TrueBlue collaborates with various insurance carriers to manage its workers' compensation needs. As of September 29, 2024, the company recorded workers’ compensation costs of $1.6 million for the thirteen weeks ended, compared to $7.8 million for the same period in the previous year. For the thirty-nine weeks ended September 29, 2024, these costs were $11.7 million, down from $18.5 million in 2023. The partnerships with these carriers help mitigate risks associated with employee injuries and ensure compliance with state regulations.
Partnerships with state workers’ compensation programs
TrueBlue maintains partnerships with state workers' compensation programs, which are essential for managing claims and compliance. The company’s involvement in these programs allows it to streamline its workers' compensation processes and manage collateral requirements effectively. As of September 29, 2024, the total collateral commitments to support its workers' compensation obligations were approximately $156.5 million. These programs are pivotal in providing a safety net for employees while minimizing financial risks for the company.
Alliances with technology providers for digital transformation
TrueBlue is actively pursuing alliances with technology providers to enhance its digital transformation initiatives. The company has invested in upgrading its technology platforms, particularly for its PeopleReady segment. For the thirty-nine weeks ended September 29, 2024, capital expenditures related to technology upgrades amounted to between $4 million and $8 million. These partnerships aim to improve operational efficiency and service delivery, ultimately enhancing client satisfaction and market competitiveness.
Relationships with clients across various industries for staffing solutions
TrueBlue has established extensive relationships with clients across multiple industries, including manufacturing, retail, and transportation. The company reported a significant decline in revenue from its PeopleReady segment, which saw a drop of 24.2% to $214.8 million for the thirteen weeks ended September 29, 2024. This downturn reflects the broader economic challenges impacting client demand for staffing solutions. Nevertheless, TrueBlue continues to adapt its offerings to meet the evolving needs of its diverse clientele.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Insurance Carriers | Manage workers' compensation liabilities | Costs reduced from $7.8M to $1.6M YoY (13 weeks) |
| State Programs | Streamline claims and compliance | Total collateral commitments: $156.5M |
| Technology Providers | Digital transformation initiatives | CapEx on technology: $4M - $8M |
| Client Relationships | Staffing solutions across industries | Revenue decline of 24.2% in PeopleReady |
TrueBlue, Inc. (TBI) - Business Model: Key Activities
Providing contingent staffing solutions through PeopleReady
TrueBlue's PeopleReady segment generated revenue from services of $214,792,000 for the thirteen weeks ended September 29, 2024, compared to $283,187,000 for the same period in 2023. For the thirty-nine weeks ended September 29, 2024, revenue was $660,862,000, down from $811,133,000 in the previous year.
Segment profit for PeopleReady was $3,043,000 (1.4% of revenue) for the thirteen weeks and a loss of $1,621,000 (-0.2% of revenue) for the thirty-nine weeks.
Recruitment process outsourcing via PeopleScout
In the PeopleScout segment, revenue from services was $36,713,000 for the thirteen weeks ended September 29, 2024, compared to $52,944,000 for the same period in 2023. For the thirty-nine weeks ended September 29, 2024, revenue was $124,115,000, down from $182,130,000 in the previous year.
Segment profit decreased to $2,542,000 (6.9% of revenue) for the thirteen weeks and $10,851,000 (8.7% of revenue) for the thirty-nine weeks.
Managing client labor programs through PeopleManagement
PeopleManagement reported revenue from services of $130,852,000 for the thirteen weeks ended September 29, 2024, which was down from $137,065,000 in the same period in 2023. For the thirty-nine weeks, revenue was $396,463,000, down from $420,809,000.
Segment profit improved to $3,278,000 (2.5% of revenue) for the thirteen weeks and $9,424,000 (2.4% of revenue) for the thirty-nine weeks.
Developing and enhancing digital platforms like JobStack and Affinix
TrueBlue is investing in technology upgrades, including enhancements to its JobStack platform. Capital expenditures related to technology upgrades were part of the total capital expenditures expected to be between $4 million and $8 million for the fiscal fourth quarter of 2024.
As of September 29, 2024, TrueBlue reported $14,505,000 in cash and cash equivalents, with significant investments in software as a service assets.
| Segment | Thirteen Weeks Revenue (2024) | Thirteen Weeks Revenue (2023) | Thirty-Nine Weeks Revenue (2024) | Thirty-Nine Weeks Revenue (2023) | Segment Profit (2024) | Segment Profit (2023) |
|---|---|---|---|---|---|---|
| PeopleReady | $214,792,000 | $283,187,000 | $660,862,000 | $811,133,000 | $3,043,000 | $9,656,000 |
| PeopleScout | $36,713,000 | $52,944,000 | $124,115,000 | $182,130,000 | $2,542,000 | $6,272,000 |
| PeopleManagement | $130,852,000 | $137,065,000 | $396,463,000 | $420,809,000 | $3,278,000 | $2,134,000 |
TrueBlue, Inc. (TBI) - Business Model: Key Resources
Workforce of skilled labor associates
TrueBlue, Inc. relies heavily on its workforce, comprising over 300,000 skilled labor associates across various sectors. This workforce is essential for delivering staffing solutions tailored to the needs of clients in multiple industries, including construction, manufacturing, retail, and renewable energy. The company's ability to provide timely and effective staffing solutions is largely dependent on the proficiency and availability of these associates.
Technology infrastructure for service delivery
TrueBlue has invested significantly in technology to enhance its service delivery. The company has transitioned to cloud-based software solutions, which have improved operational efficiency. As of September 29, 2024, TrueBlue's capital expenditures for technology upgrades were estimated between $4 million and $8 million for the fiscal fourth quarter. This investment supports the automation of processes and increases the competitive differentiation of its services.
Branch network across all 50 states and Puerto Rico
TrueBlue operates a comprehensive branch network that spans all 50 states and Puerto Rico. This extensive network allows the company to maintain a local presence and respond quickly to client needs. The company had 600 branch locations as of the end of 2023, enabling it to serve clients effectively and adapt to regional labor market conditions.
Proprietary mobile applications for staffing and recruitment
The company has developed proprietary mobile applications that facilitate staffing and recruitment processes. These applications provide clients and labor associates with a user-friendly platform for job searches, application submissions, and communication. TrueBlue's commitment to enhancing its technological capabilities is evident in its ongoing investment in app development, aimed at improving user experience and operational efficiency.
| Key Resource | Description | Current Statistics |
|---|---|---|
| Workforce of Skilled Labor Associates | Over 300,000 skilled labor associates available for staffing solutions. | 300,000+ |
| Technology Infrastructure | Cloud-based solutions for improved service delivery. | Capital expenditures of $4 million - $8 million anticipated for Q4 2024. |
| Branch Network | Presence in all 50 states and Puerto Rico for local service. | 600 branch locations |
| Proprietary Mobile Applications | Applications for staffing and recruitment, enhancing user experience. | Ongoing investment in app development |
TrueBlue, Inc. (TBI) - Business Model: Value Propositions
Quick access to a qualified labor pool for clients
TrueBlue, Inc. provides clients with immediate access to a large, qualified labor pool through its PeopleReady segment. As of September 29, 2024, PeopleReady generated $214.8 million in revenue, although this represented a decline of 24.2% compared to the prior year. The company focuses on sectors such as construction, transportation, manufacturing, and renewable energy, which are critical for clients needing flexible staffing solutions.
Cost-effective staffing solutions tailored to client needs
TrueBlue offers cost-effective staffing solutions through its various segments, including PeopleManagement and PeopleScout. The total company revenue for the thirteen weeks ended September 29, 2024, was $382.4 million, down from $473.2 million in the same period in 2023. The company emphasizes operational cost management, which has led to a reduction in selling, general, and administrative expenses totaling $99.9 million, a decrease of 17.2% year-over-year.
Enhanced recruiting efficiency through advanced technology
TrueBlue leverages technology to enhance recruiting efficiency. Investments are being made to upgrade the PeopleReady technology platform, which is expected to improve service delivery and client engagement. For the fiscal year, the company anticipates capital expenditures related to technology upgrades between $4 million and $8 million. This focus on technology not only streamlines operations but also supports the quick placement of qualified candidates.
Support for clients in managing workforce flexibility and compliance
TrueBlue assists clients in navigating workforce flexibility and compliance challenges. The company reported a net loss of $7.6 million for the thirteen weeks ended September 29, 2024. Despite this, TrueBlue's commitment to compliance with labor regulations and workforce management helps clients mitigate risks associated with contingent labor. The organization’s agility in adapting to regulatory changes supports clients in maintaining operational efficiency.
| Segment | Revenue (in thousands) | Revenue Change (%) | Gross Profit (in thousands) | Gross Profit Margin (%) |
|---|---|---|---|---|
| PeopleReady | $214,792 | (24.2) | $60,000 | 27.9 |
| PeopleScout | $36,713 | (30.7) | $10,400 | 28.4 |
| PeopleManagement | $130,852 | (4.5) | $30,000 | 22.9 |
| Total Company | $382,357 | (19.2) | $100,037 | 26.2 |
TrueBlue, Inc. (TBI) - Business Model: Customer Relationships
Direct engagement through local staffing branches
TrueBlue operates numerous local staffing branches, which facilitate direct engagement with clients. As of September 29, 2024, TrueBlue reported a revenue of $382.4 million for the quarter, reflecting a 19.2% decline compared to the previous year, largely attributed to reduced demand for temporary labor.
Ongoing support via dedicated account managers
TrueBlue employs dedicated account managers to foster ongoing support for clients. These managers are essential in maintaining relationships and ensuring customer satisfaction. The company reported selling, general and administrative (SG&A) expenses of $99.9 million for the thirteen weeks ended September 29, 2024, down 17.2% from the prior year, indicating a strategic focus on operational efficiency while maintaining service quality.
Digital interactions through mobile applications
TrueBlue has invested in digital interactions, including mobile applications that enhance client engagement. The ongoing transition to cloud-based solutions aims to improve service delivery and operational efficiency. For the fiscal fourth quarter of 2024, TrueBlue expects capital expenditures between $4 million and $8 million, part of which will support these digital initiatives.
Focus on client satisfaction and retention strategies
TrueBlue places significant emphasis on client satisfaction and retention strategies. The gross profit margin remained stable at 26.2% for the thirteen weeks ended September 29, 2024, which reflects the company's efforts to manage operational costs effectively despite revenue declines due to market conditions. The company’s liquidity position is strong, with $14.5 million in cash and cash equivalents and a revolving credit facility capable of providing additional liquidity.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from Services | $382.4 million | $473.2 million | -19.2% |
| SG&A Expenses | $99.9 million | $120.7 million | -17.2% |
| Gross Profit Margin | 26.2% | 26.2% | 0% |
| Cash and Cash Equivalents | $14.5 million | N/A | N/A |
TrueBlue, Inc. (TBI) - Business Model: Channels
Branch networks for in-person staffing services
TrueBlue operates a branch network that delivers in-person staffing services through its PeopleReady segment. As of September 29, 2024, the revenue from PeopleReady was $214.8 million, representing a decline of 24.2% compared to the same quarter in 2023. This segment focuses on providing blue-collar, contingent staffing across industries such as construction, transportation, and manufacturing. The branch locations serve as the primary touchpoints for clients seeking immediate staffing solutions.
Mobile app (JobStack) for 24/7 access to staffing solutions
The JobStack mobile app enables clients and job seekers to connect with staffing solutions anytime, anywhere. This platform enhances accessibility and convenience, allowing users to find jobs or fill positions quickly. TrueBlue continues to invest in technology to improve this app, which is part of a broader strategy to modernize service delivery.
Online platforms for recruitment process outsourcing
TrueBlue's PeopleScout segment utilizes online platforms to provide recruitment process outsourcing (RPO). For the thirteen weeks ended September 29, 2024, PeopleScout generated $36.7 million in revenue, reflecting a 30.7% decline year-over-year. The online solutions include employer branding services and management of outsourced labor service providers, allowing clients to streamline their recruitment processes significantly.
Direct sales and marketing efforts targeting various industries
TrueBlue employs direct sales and marketing strategies to target various industries, including renewable energy, retail, and logistics. The company reported a total revenue of $382.4 million for the thirteen weeks ended September 29, 2024, down 19.2% from the previous year. The sales teams are dedicated to understanding industry-specific needs and crafting tailored staffing solutions to meet those demands.
| Channel | Revenue (Q3 2024) | Year-over-Year Change | Key Features |
|---|---|---|---|
| Branch Networks | $214.8 million | -24.2% | In-person staffing services |
| JobStack Mobile App | Not Disclosed | N/A | 24/7 access to staffing solutions |
| Online RPO Platforms (PeopleScout) | $36.7 million | -30.7% | Recruitment process outsourcing |
| Direct Sales | $382.4 million (Total Revenue) | -19.2% | Targeted industry marketing |
TrueBlue, Inc. (TBI) - Business Model: Customer Segments
Companies in need of contingent labor across multiple sectors
TrueBlue, Inc. primarily serves companies requiring contingent labor across various sectors. For the thirteen weeks ended September 29, 2024, the company reported revenue from its PeopleReady segment of $214.8 million, a decline of 24.2% compared to $283.2 million during the same period in 2023. The demand for temporary labor has been impacted by client hesitance to make staffing decisions due to economic uncertainties.
Clients looking for recruitment process outsourcing
TrueBlue's PeopleScout segment, which focuses on recruitment process outsourcing (RPO), generated $36.7 million for the thirteen weeks ended September 29, 2024, down 30.7% from $52.9 million in the prior year. Clients in this segment are increasingly managing hiring internally, leading to reduced volumes of outsourced recruitment.
Industries like construction, retail, and renewable energy
TrueBlue serves a diverse set of industries, including construction, retail, and renewable energy. Notably, the PeopleReady segment provides skilled labor to these sectors. Revenue from clients in the renewable energy sector has been inconsistent, reflecting project delays due to external factors. The construction industry remains a significant source of demand, although overall revenues have declined amid economic pressures.
Organizations requiring managed services for contingent labor
Organizations seeking managed services for contingent labor can utilize TrueBlue’s PeopleManagement segment. In the thirteen weeks ended September 29, 2024, this segment reported revenue of $130.9 million, a decrease of 4.5% from $137.1 million in the previous year. The need for managed services has become more pronounced as businesses look to streamline workforce management and reduce reliance on variable labor.
| Customer Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| PeopleReady (Contingent Labor) | $214.8 million | $283.2 million | -24.2% |
| PeopleScout (RPO) | $36.7 million | $52.9 million | -30.7% |
| PeopleManagement (Managed Services) | $130.9 million | $137.1 million | -4.5% |
As of September 29, 2024, TrueBlue has reported a total company revenue of $382.4 million for the quarter, down 19.2% from $473.2 million in the same quarter of the previous year. This decline is indicative of broader trends in the labor market, where uncertainty has led to decreased demand for both temporary and permanent staffing solutions across various sectors.
TrueBlue, Inc. (TBI) - Business Model: Cost Structure
Labor costs associated with staffing and recruitment services.
TrueBlue, Inc. incurs significant labor costs, primarily due to staffing and recruitment services. For the thirteen weeks ended September 29, 2024, the cost of services totaled $282.3 million, which includes labor costs associated with providing staffing services. This represents a decrease from $349.0 million for the same period in 2023. The labor costs are essential for maintaining the workforce needed to fulfill client staffing requirements and are a variable cost that adjusts with demand.
Technology development and maintenance expenses.
TrueBlue's technology development and maintenance expenses are integral to its operations. The company reported depreciation and amortization expenses of $6.97 million for the thirteen weeks ended September 29, 2024, compared to $6.18 million for the same period in 2023. This increase reflects ongoing investments in technology platforms, primarily related to PeopleReady's technology upgrades, which are expected to enhance operational efficiency and service delivery.
Selling, general, and administrative expenses.
The selling, general, and administrative (SG&A) expenses for TrueBlue amounted to $99.97 million for the thirteen weeks ended September 29, 2024, down from $120.7 million in the same period the previous year. This decline of 17.2% is attributed to operational cost management actions and the simplification of the organizational structure in response to decreased demand for services. The SG&A expenses represented 26.2% of total revenue for the period.
| Expense Category | Thirteen Weeks Ended September 29, 2024 (in thousands) | Thirteen Weeks Ended September 24, 2023 (in thousands) |
|---|---|---|
| Cost of Services | $282,320 | $349,023 |
| Depreciation and Amortization | $6,967 | $6,184 |
| Selling, General and Administrative Expenses | $99,973 | $120,715 |
Workers’ compensation insurance premiums and collateral commitments.
TrueBlue's workers' compensation costs include insurance premiums and self-insurance reserves. For the thirteen weeks ended September 29, 2024, the company recorded workers' compensation costs of $1.6 million. This figure is a decrease from $7.8 million in the same period of the previous year. The total collateral commitments for workers' compensation insurance amounted to $156.45 million as of September 29, 2024. This includes investments held in trust and letters of credit that support the company’s workers’ compensation obligations.
TrueBlue, Inc. (TBI) - Business Model: Revenue Streams
Fees from staffing services provided by PeopleReady
For the thirteen weeks ended September 29, 2024, PeopleReady generated $214.8 million in revenue from staffing services, reflecting a 24.2% decline compared to $283.2 million in the same period of the previous year. For the thirty-nine weeks ended September 29, 2024, revenue from PeopleReady was $660.9 million, down 18.5% from $811.1 million in the prior year.
Revenue from recruitment process outsourcing by PeopleScout
PeopleScout reported revenue of $36.7 million for the thirteen weeks ended September 29, 2024, a decrease of 30.7% from $52.9 million for the same period in 2023. Over the thirty-nine weeks, revenue was $124.1 million, down 31.9% from $182.1 million in the previous year.
Income from managed service provider contracts within PeopleManagement
PeopleManagement achieved revenue of $130.9 million for the thirteen weeks ended September 29, 2024, representing a 4.5% decrease from $137.1 million the previous year. For the thirty-nine weeks, the revenue was $396.5 million, down 5.8% from $420.8 million in the same period of 2023.
Additional income from technology-driven solutions and applications
TrueBlue, Inc. is investing in technology-driven solutions, transitioning to cloud-based software solutions. The company plans to allocate between $4 million and $8 million for capital expenditures and spending on software as a service assets for the fiscal fourth quarter of 2024.
| Segment | Thirteen Weeks Revenue (2024) | Thirteen Weeks Revenue (2023) | Change (%) | Thirty-Nine Weeks Revenue (2024) | Thirty-Nine Weeks Revenue (2023) | Change (%) |
|---|---|---|---|---|---|---|
| PeopleReady | $214.8 million | $283.2 million | -24.2% | $660.9 million | $811.1 million | -18.5% |
| PeopleScout | $36.7 million | $52.9 million | -30.7% | $124.1 million | $182.1 million | -31.9% |
| PeopleManagement | $130.9 million | $137.1 million | -4.5% | $396.5 million | $420.8 million | -5.8% |
Updated on 16 Nov 2024
Resources:
- TrueBlue, Inc. (TBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TrueBlue, Inc. (TBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TrueBlue, Inc. (TBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.