When we partnered with this multi-channel retailer in 2011, the main objective was to operate with a preferred agency supplier list, enabling our client to standardise pay rates and introduce service agreements.
Under the first phase of the contract, our client needed a more streamlined recruitment process that ensured delivered quality staff, at a reduced cost on demand. There was also a focus on improving standards and reducing agency turnover, thus leading to greater productivity.
The second phase for our client was about ethical supply practices, continuous improvement and moving away from a simply transactional service, ensuring a full complement of engaged delivery staff to ensure all of our client’s supplier chain partners enjoyed not only a timely service, but of the best possible standard.
Initially, an extensive audit discovered that our client was using multiple recruitment agencies across their nationwide network, with candidates supplied of varying quality and cost. In addition to this, our client was also receiving multiple invoices each week across all locations, causing significant administration for their HR and Finance departments, especially when queries arose.
This audit discovery alone highlighted that the visibility, and therefore ability for our client to effectively manage their temporary agency labour across all their locations, was limited.
By working with us, our client has discovered new opportunities and innovative ways of structuring their workforce, namely workforce modelling.
The benefits of our solution to both our client and their workers include the following:
- Cost savings and more control over forecasting temporary spend
- Visibility and control of spend at all levels, by job category or location
- Ability to monitor agency performance and improve service levels
- The retention of agency relationships at a local level
- Highly efficient processing of invoices and timesheets
- Ongoing risk mitigation
- Ongoing agency management
In the first year of implementation, our client received the following results:
- Cost savings of over £2.4m delivered on annual temporary agency spend
- Preferred agency panel operating with our clients standard terms and conditions, including fixed pay and agency margin rates
- 70% of existing agencies joined the new panel
- Service agreements in place with KPIs to monitor agency performance
- Reduction of multiple invoices to 3 per week with 100% invoice accuracy
- Real-time management information available
- 100% compliance across all of our clients locations
- A smooth implementation which resulted in very little disruption to the business
A representative from the company gave the following quote for this case study:
“The market review of our temporary labour workforce has been an important project for us to undertake.
The neutral insight provided as part of the process was invaluable. The temporary labour workforce is integral to our operations and will continue to be a driver to our future success. We have effective management of our temporary labour, as well as the supplying agencies. We are able to consistently deliver the services required by our internal stakeholders. Our approach to continually improvement ensures we add value to the relationship but also that we achieve significant savings.”