Overview
Co-operative Retail Logistics (CRL) is part of the Co-operative Group (CWS) Ltd, the largest consumer co-operative in the UK which employs over 69,000 people. It is the main distribution arm of the Co-operative Retail Trading Group (CRTG) of which the Co-operative Group is the largest member.
Testimonial
"de Poel's extensive knowledge of the temporary labour industry coupled with their innovative and far-reaching vendor management solutions has enabled us to improve not only our supply and retention of quality temporary agency staff, but also the levels of service given by our nominated agencies.
Co-operative Retail Logistics (CRL) have benefited enormously from the implementation of de Poel's web based electronic timesheet and invoice processing system (e-tips®), making considerable cost savings and successfully streamlining administrative procedures across all twenty of our sites."
Case Study
Client:
Co-operative Retail Logistics (CRL) is part of the Co-operative Group (CWS) Ltd, the largest consumer co-operative in the UK which employs over 69,000 people. It is the main distribution arm of the Co-operative Retail Trading Group (CRTG) of which the Co-operative Group is the largest member.
CRTG has more than 3,000 food outlets in high street locations in towns and villages across the UK.
Client issue/s:
Annual temporary agency labour expenditure of approximately £4 million per annum, across 20 sites. Numerous agencies supplying the company's various locations, resulting in considerable administration and reduced opportunity to leverage spend. An assortment of supplier agreements in place, frequently with different terms and conditions. Numerous pay and charge rates for the same job, often resulting in different rates at a single site. Confusions regarding true supply cost as a result of a diverse overtime rules. Considerable variation in staff quality and service provided by agencies. No formal structure for measuring supplier performance or awarding future business. Significant administration cost as a result of numerous invoices and timesheets.
Solution:
Reduce overall temporary agency labour expenditure by renegotiating and standardising pay and charge rates. Establish a level playing field by setting specific rules for overtime charges and putting in place accurate quality and service measurements. Increase agencies commitment in order to improve service delivery.
Approach:
mplement a vendor management solution that will deliver tangible benefits to the client and their suppliers. Establish a firm framework that will delivery clarity of process and charge rates to reduce confusion and to encourage the development of long term relationships between CRL and their agencies.
Implementation:
Initially de Poel undertook to implement its unique vendor management process in a pilot region to enable CRL to assess the benefits the process would deliver. The pilot took place in the Midlands.
Following the successful pilot the solution was rolled out across the remaining regions. During this stage de Poel visited all sites using temporary agency labour to determine existing supply arrangements and local requirements, in addition to identifying current service levels and pay and charge rates. The information gathered during this process was then analysed, enabling de Poel to put forward a series of recommendations covering regional pricing structures and key performance indicators to measure supplier service delivery. These recommendations were discussed and agreed with senior CRL management.
Existing CRL agencies suppliers were invited to attend a series of presentations outlining the new supply process, in addition to the new supply requirements and pricing structures. Agencies who wished to continue to supply CRL were then required to submit a request to supply, in addition to up to date proposal documentation.
Following the analysis of the agency supply requests, de Poel submitted a proposed list of suppliers to CRL's senior management team. Once the supplier panel was agreed, de Poel undertook training of all client and supplier locations on the use of e-tips®.
e-tips® is an online invoice processing system which enables paperless process of agency timesheets and presents CRL with a single consolidated invoice covering all contingent labour spend. e-tips® also provides instant access to accurate management information providing complete visibility and control of agency costs.
Results:
Total number of contingent labour suppliers was substantially reduced.
Standardised terms and conditions were put in place to protect the interests of the client.
Formal key performance indicators and up to date management information provide accurate information relating to agency performance.
Direct cost savings of approximately 5% were achieved.
Agency invoices were reduced to a single electronic consolidated invoice a week, dramatically reducing back office costs.
