Case Study: Supply consolidation

 

Client overview

Our client is a manufacturer of steel products including reinforcements, which has undergone a series of acquisitions of the last few years. The resulting larger organisation is based in 17 locations throughout the UK including England, Scotland, Wales and Northern Ireland. They have many brands in the group and have a large dependency for Agency workers due to the spikes in their manufacturing.

Relationship overview

Prior to engaging with Adecco nationally, Adecco had supplied staff to the different brands on an ad-hoc basis. Our client’s HR team based in South Wales approached Adecco locally in Swansea as a result of our reputation as a key partner of large industrial and manufacturing employers in the region.

Challenge

Each site and brand had their own local arrangements with their preferred suppliers. The issues for the central procurement and HR teams were that there was a lack of control. The rates were inconsistent as was the level of performance and supply.
It would be very difficult to manage various suppliers and also to gain more detailed information around supply and other key areas such as absence, attrition and spend.


Adecco Solution

  • Introduced set rates across all sites for margin and wage on costs.
  • Introduced transfer rates for existing staff.
  • Aligned branches to the client’s sites and developed working relationships with the key stakeholders before the implementation.
  • Detailed a planned implementation process, thus giving the client confidence that the transition would be a smooth one with minimal impact on their operation.
  • Introduced an account management team that would review the operational processes and come up with recommendation for continued improvement.
  • Set KPI’s around absence, fill, and retention that are key to the success of the contract between the two parties and the clients operational efficiency.

Impact/ Results

  • Commercially better rates providing the Group with an annual saving
  • Account Management focus on our business with single escalation points rather than ten plus individual suppliers
  • Ability to identify performance trends and undertake continuous improvement
  • Business best practice – implementation of ‘What works best’ across sites
  • Support and ease of implementing the effects of AWR into our business
  • Easier to implement our own policies on recruitment with one agency over several, especially including recruitment of new temps
  • Reduced internal administration work from checking hours, chasing time sheets to order/invoice processing

 

Client Testimonial


“Adecco were awarded the contract for the Group Supply based on a professional tender response and commercially attractive rates for our business. Throughout the implementation process, Adecco were professional and respectful of out-going agencies, took on accounts with 99% retention of employees through TUPE and adhered to all set timescales.

We are receiving management information for the first time on temporary recruitment and as a result can really focus on the areas in the business requiring improvement. Adecco have built supply pools in our larger temporary supply locations and are putting in place specific individuals to concentrate on our business. We communicate with them on a regular basis and are very much seen as a partner rather than a supplier to us.

We have already witnessed the benefit in moving to one supplier in the group nine months after contract award and are fully on the way to establishing a long term relationship with Adecco”

Roger Grooms – Group Procurement Leader