Overview
SITA UK is a recycling and waste management company, generating environmental value, social value and economic value from the nation's waste. The company delivers environmentally responsible and increasingly innovative solutions for the public, local government, industry and commerce, enabling customers to reduce their impact on the environment. SITA UK employs over 5000 staff and had an annual turnover in excess of £700m in 2007.
Testimonial
"In order to assist with the management of our extensive temporary workforce and ultimately, deliver the desired cost savings, de Poel instigated a thorough review of our supply base and made a series of individually tailored recommendations.
A key issue for SITA UK was the need to increase the availability of management information across the four areas of the business. By implementing their unique e-tips® system throughout our network de Poel were able to provide us with a new level of transparency over temporary spend and usage, allowing for more accurate future forecasting.
We were keen to improve service delivery and enhance relationships with our suppliers. By reducing the number of agencies from 150 to a select panel of 48 regularly audited suppliers and introducing standard service agreements and a fixed pricing structure we have noticed a distinct improvement in performance, quality, and in our own processes.
As a consequence, de Poel has delivered considerable cost savings of up to 15% throughout our Integrated Waste Management and Municipal sectors."
Case Study
Client:
SITA UK is a recycling and waste management company, generating environmental value, social value and economic value from the nation's waste. The company delivers environmentally responsible and increasingly innovative solutions for the public, local government, industry and commerce, enabling customers to reduce their impact on the environment. SITA UK employs over 5000 staff and had an annual turnover in excess of £700m in 2007.
Client's issue/s:
- £5m spend identified on temporary labour across the all areas of SITA UK's business.
- More than 150 recruitment agencies supplying the company with specialist LGV drivers, FLT drivers, plant operatives and labourers with a litany of diverse and predominantly expensive pay and charge rates.
- A high level of administration resulting from the sheer number of workers employed via the different agencies, in excess of 9,000 invoices processed each year.
- Issues with the management information across the business needing greater visibility and control over spend.
Solution
Review and consolidate supply base and put formal service agreements in place in order to improve overall service delivery and enhance individual relationships with agencies. Investigate current climate to establish a realistic rates structure throughout the country. Install a proven timesheet and invoice processing system to reduce the number of invoices processed whilst also increase the availability of management information.
Approach
Instruct an independent consultant with a lengthy track record of success to administer the system installation, liaise with suppliers and negotiate major contractual and fiscal changes.
Implementation
Working in conjunction with SITA UK's senior management, de Poel's operations team carried out a systematic review of current agency spend and service levels across the company's Municipal and Integrated Waste Management (IWM) divisions.
Armed with detailed agency information and a clear picture of pay, charge and overtime rates de Poel was able to build a fixed pricing structure and draft new standard service agreements, which were subsequently communicated to existing suppliers.
By establishing which agencies wished to continue to supply under the new guidelines, de Poel was able to build a select panel of 48 agencies to service SITA UK's temporary workforce requirements.
In order to facilitate the administration of invoices and deliver the desired level of real time management information, de Poel implemented their web based timesheet and invoice processing system, e-tips® across the country. Users from both client and agency sites received appropriate training from de Poel's in-house training department, with ongoing support provided by the e-tips® helpdesk.
The project has initially been rolled out across the 25 Municipal sites and 80 IWM sub sites and will progress throughout the Treatment and Industrial and Commercial divisions during the coming months.
Results
Considerable cost savings achieved throughout SITA UK's IWM and Municipal sectors, with 15% identified at the East Devon site and a further 10% at the Eastbourne site.
The production of a single, consolidated, weekly invoice per division has dramatically reduced the number of invoices processed from over 9,000 down to 52 per year per division and has significantly increased invoice accuracy and increased processing speed.
UK wide implementation of de Poel's unique e-tips® system has provided noticeable savings and delivered a new level of transparency, visibility and control over temporary spend across the business.
Agency performance and quality of service has improved as a result of the new standard service agreements and is maintained with regular supplier audits.
The appointment of a dedicated de Poel account manager and individually selected project team ensured the smooth implementation of the entire process and enhanced communication between the two companies.
