Case Study

Client background:

OCS is a market leader in property support services.  Offering catering, security, cleaning, , horticulture, hygiene, waste management and pest control as a single, bundled or fully integrated service, OCS provides 'One Complete Solution'. 

When the bespoke solutions which meet the needs of their extensive client base require it, OCS utilises temporary agency workers, including cleaners, caterers, administrative staff and drivers.  Striving to improve efficiencies, they appointed de Poel to analyse their usage of temporary agency labour.

Approach:

Primarily de Poel commenced a methodical data gathering and analysis process, obtaining fundamental information, which helped de Poel understand OCS' operation and labour requirements.  Site visits were conducted in key locations to gain a logistical insight into their 127 locations across the UK.  An agency consultation process, inviting 75 existing agency suppliers, was implemented in order to obtain primary data.   This quickly established relationships with key agencies and provided an understanding of business needs from all perspectives.

An in depth analysis of invoices and timesheets, over a 13 week period, from May - September, highlighted varying pay and charge rates being applied by all of their agencies.  de Poel's analysis report detailed:

• Site rates and spend summary, this identified accurate spend per site and the composite rate structure.
• Pricing summary,  this detailed current pay rates (sourced from existing agencies) and recommended  rate by location and skill set, providing a standard matrix for cleaners, and warehouse operatives etc.
• Savings overview, highlighting savings per location with an annual projected spend and savings report

Solution:

Establish a preferred agency panel, based on volumes, skill sets and geographical coverage, with OCS operational input, to ensure placement fulfilment in all of their 127 locations. 
Introduce a contractual service agreement with:

• Fixed pay and charge matrix for all skill sets.
• Key performance indicators which enable agencies to be measured against performance and enable a perpetual review of the preferred agency panel.

Reduce the burden of administration associated with using temporary agency labour by introducing de Poel's e-tip^® invoice and timesheet processing software, removing the transactional cost of processing invoices.

Results:

OCS approved the proposed solution which achieved:

• 8% cost savings delivered on annual temporary agency spend
• A new preferred agency panel, operating with fixed pay and charge rates
• Service agreements, with the ability to measure agency performance
• Projected transaction invoices saving of £234,000
• Reduction of 4,000 invoices to 52 a year, invoice accuracy of 99%
• Real time visibility, management information and control over spend

Benefits:

Savings of 8% on the company's temporary labour spend has increased profitability.   Introduction of a preferred agency panel has secured fulfilment of their varied skill sets.  Establishment of fixed pay and charge rates has given OCS control over their temporary labour spend and alleviated the operational responsibility of negotiating fees. 

The introduction of e-tips^® has eliminated the burden of invoice administration, enabling resource to be channelled appropriately.  Management information has provided OCS with a new level of visibility and control over staff usage and agency spend which is manageable and measurable at all times.

OCS Case Study.pdf