Case Study

Client:

Allied Bakeries is one of the UK's biggest bakeries and a division of Associated British Foods. The company has an extensive customer base and an impressive portfolio of well known household names including a top10 UK grocery brand.

Allied Bakeries effect in excess of 15,000 deliveries each day from 16 locations.

Client's issue/s:

 A significant annual expenditure on temporary resource and associated invoice processing through 188 agencies across the country, with a mixed quality of service from existing suppliers. Difficulty experienced in the procurement and retention of good quality temps with the requirement for weekend drivers, seasonal trends and client promotions also affecting the supply of staff.  Variations in pay, charge and overtime rates at single sites and throughout the company's various locations, resulting in an administration burden and little availability of management information.

Solution:

Ensure a regular supply of good quality temporary staff for both the logistics and bakeries operations by thorough re-evaluation and consolidation of current agencies. Improve service delivery from suppliers through the establishment of formal service agreements and key performance indicators. Regulate pay and charge rates within single sites in order to reduce overall annual spend. Reduce administrative costs associated with the processing of timesheets and invoices.

Approach:

Appoint de Poel as a vendor neutral managed service provider to implement a custom made solution and oversee the entire process from the establishment of a formal pay and charge structure to installation of an innovative timesheet and invoice processing system.

Implementation:

In early 2005 de Poel carried out its unique solution in a trial area consisting of the West Bromwich, Cardiff, Bournemouth, Launceston, Lincoln and Reading sites, which collectively make up the Allied Bakeries' Midlands region. During this time a detailed site analysis was carried out to determine existing staff requirements and usage, service levels and current pay and charge rates - the results of which would act as a framework for the rollout in the remaining locations.

A dedicated de Poel Account Manager was also appointed to oversee the operational side of the process and act as a first point of contact for the client. Once a list of recommendations had been drawn up and approved, rollout to the rest of the UK began with phase 2 encompassing the Northern region and phase 3, the Southern region. Existing Allied Bakeries agencies were asked to attend a series of presentations across the country outlining the new supply process. Those who wished to retain their status as a supplier were asked to submit a request to supply, and from the responses received a panel of 50 agencies nationwide was selected. 

However, at two particular bakeries, Liverpool and Glasgow, where specific problems had arisen de Poel at the request of Allied Bakeries key stakeholders decided to select and appoint a sole on-site agency to handle all temporary staff requests. Once all agencies were in place de Poel then installed their revolutionary e-tips^®  timesheet and invoice processing system and inducted all client and agency users accordingly.

Results:

Clear improvements in total expenditure achieved. Existing suppliers rationalised from 188 to 50 and then streamlined further to 35, effectively de-fragmenting agency spend and dramatically improving the quality, supply and retention of agency staff.  99.9% compliance accomplished (100% at the Liverpool and Glasgow sites) with the majority of contingent workforce spend channelled directly through the dedicated agency panel. All panel suppliers operating under standardised terms and conditions. Successful implementation of the e-tips^® system across all locations, providing real time visibility, control, management information and the virtual elimination of transactional processing. Invoices reduced from 200 per week to one per site.

allied bakeries.pdf