Overview
British Sugar is an internationally active company whose products are represented in the leading brands of all the world's major food and drink manufacturers. They are the leading supplier of sugars to the UK, providing more than half the country's sugar requirements. The company who are owned by Associated British Foods pride themselves on being a highly efficient, customer focused, innovative and solutions-drive company.
Case Study
Client Background
British Sugar is an international company whose products are represented in the leading brands of many of the world's key food and drink manufacturers. They are the premier supplier of sugar in the UK, providing more than half of the country's sugar needs. The company, which is owned by Associated British Foods (one of Europe's biggest food groups), prides itself on its customer focused and innovative approach.
British Sugar had a significant annual spend on its contingent workforce in the UK. Operating with multiple suppliers across the company's 4 sites, which led to a considerable fragmentation of spend, British Sugar recognised that the inconsistent levels of supplier service and wide variations in agency rates and margins could be standardised. Importantly British Sugar wanted to improve visibility across its labour spend by location and job category.
Due to its vendor neutral position and its proven reputation in the strategic procurement of temporary agency labour, de Poel Consulting was appointed to analyse British Sugar's requirements and propose an appropriate solution.
Solution
In order to understand British Sugar's specific staffing needs, agency expenditure and service levels, de Poel undertook a thorough analysis of all 4 sites. Agency seminars were held, quickly establishing relationships with key agencies and providing an understanding of business needs from all perspectives.
Recommendations included:
- Preferred agency panel
Operating with a preferred agency panel is the first step in taking control of a significant contingent workforce. de Poel plays an important role in ensuring agencies are selected on their compliance with requirements, current levels of supply, ability to supply, management structure and service approach. This ensures the longevity of the agency panel and thus maintains control.
- New fixed pay and charge structure
Fees can often be negotiated on a supply and demand basis, adding additional responsibility to hiring managers and creating a sporadic range of pay and charge rates. de Poel's vendor neutral position and insight into the industry allows it to recommend the optimum pay and charge rates. Operating with a fixed pay and charge structure provides control both centrally and locally.
- Service agreements
As the recruitment industry remains highly fragmented, there are no standard industry terms and conditions, allowing agencies to operate under their own agreements. Not only does this provide little comeback, it can also leave organisations legally exposed. Operating with standard service agreements mitigates legal exposure. The inclusion of key performance indicators, provides a tool under which agency performance can be monitored.
- e-tips® web-based invoicing system
Reduce the burden of administration associated with using temporary agency labour, by introducing de Poel's e-tips® invoice and timesheet processing software, removing the transactional cost of processing invoices.
Results & Benefits
Due to the introduction of standard pay and charge rates de Poel achieved the identified savings to the satisfaction of British Sugar. 100% compliance to the preferred agency panel has provided control within its contingent workforce and eased the booking process of temporary labour.
The ability to measure agency performance has enabled a perpetual review of the preferred agency panel, ensuring operational requirements are continually met.
The introduction of e-tips® has dramatically improved invoice efficiency, with administration cost savings providing a single 100% accurate consolidated invoice.
The extensive range of instant real-time management information available has already proved invaluable for analysing staff usage, as well as budgeting for future usage.
The appointment of a dedicated de Poel Account Manager has centralised the process of temporary agency labour spend, whilst allowing local choice and permitting agency relationships to be maintained.
de Poel's unique approach to the procurement of temporary labour has ensured British Sugar's contingent workforce spend is manageable and visible across the business at all times.
