Overview
GEFCO is one of world's leading logistics integrators. The group operates across three business divisions: Automotive (vehicle distribution and preparation), Network (groupage and overland transport of freight) and Supply (air and sea freight transport and logistics).
GEFCO has 400 sites worldwide, accounting for 85% of world trade.
Testimonial
"Having identified a significant annual spend on the procurement of temporary labour across our Network Division we were delighted that de Poel was able to work alongside us to deliver overall gross savings of 8.4%, with an impressive 12.4% at one of our locations.
In order to achieve this de Poel carried out a number of measures on our behalf, including the rationalisation of our existing suppliers and the establishment of a new fixed rates structure as well as the installation of their e-tipsTM timesheet and invoice processing system.
The success of the project has encouraged to us to investigate similar opportunities within our Automotive Division and consider the future implementation of additional de Poel software solutions."
Case Study
Client:
GEFCO is one of world's leading logistics integrators. The group operates across three business divisions: Automotive (vehicle distribution and preparation), Network (groupage and overland transport of freight) and Supply (air and sea freight transport and logistics).
GEFCO has 400 sites worldwide, accounting for 85% of world trade.
The client's issue/s:
£2.4m projected annual spend on the procurement of temporary workers across the Network division's 8 UK locations. 27 agencies supplying the company with drivers, warehouse staff and forklift truck operatives, all working under their own terms of business and charging individual rates. In excess of 2,000 invoices processed per annum, making it a time consuming, labour intensive and costly task.
The Solution
Install a proven web based software system to consolidate the number of invoices processed and deliver significant cost savings. Reduce the number of agency suppliers, to enhance the client's control over their supply base and increase service levels. Implement formal service agreements for all preferred agencies to standardise terms of supply and charge rates whilst at the same time reduce the risk of litigation.
The Approach
Consult an industry specialist with a strong reputation for success who can provide a viable solution and deliver the necessary cost savings.
The Implementation
In order to fully understand GEFCO's supply situation and ascertain definite temporary spend de Poel instigated a thorough review of the Network division's 8 locations and their existing agencies. With the data collated de Poel were able to recommend a new standardised pay and charge structure which would be enhanced by fixed margins across all suppliers.
As it was important to keep all current suppliers informed of the proposed changes de Poel organised a series of agency presentations across the country. Having explained the new supply process and rates structure de Poel invited agencies to submit expressions of interest to join a select GEFCO panel. By liaising with GEFCO and reviewing the responses received de Poel was able to build a new panel of 19 suppliers. In addition to this GEFCO was given access to de Poel's Gold Standard Agencies, enhancing the choice and quality of supplier.
In order to reduce the amount of invoices processed de Poel installed their cutting edge timesheet and invoice processing system, e-tipsTM across the Network division, ensuring that all relevant client and agency personnel were appropriately trained.
The project was rolled out simultaneously across all locations at the end of May 2007.
The Result
Overall gross savings of 8.4% delivered to date, with an impressive 12.4% at one location.
Suppliers reduced from 27 to a select panel of 18 preferred agencies with the added option of using de Poel's Gold Standard Agencies.
Delivery of de Poel's e-tipsTM software solution has condensed the number of invoices processed each year from over 2,000 to just a single invoice per week, providing significant soft savings and allowing GEFCO to redirect their resources to more critical business functions.
99-100% compliance, indicating negligible out of panel spend.
The success of the project has led GEFCO to investigate similar opportunities within their Automotive division and to look at the possible future implementation of PermPortTM (de Poel's web based permanent recruitment management system) and sub-eTM (de Poel's electronic subcontractor management and invoice processing system).
