Ryder

Ryder is a global provider of leading-edge logistics and transportation solutions. The European arm of the company was established in 1971 and they now operate in excess of 50 locations in the UK.

Client's issues:

Significant annual temporary agency labour spend. More than 200 agencies (of which there were 98 in the Midlands region alone) supplying the company with staff throughout the UK. Numerous agency invoices and timesheets processed at considerable cost. Very few service level agreements in place resulting in poor quality service and substantial variation in pay and charge rates. Difficulty in the procurement and retention of good quality agency staff.

Solution:

Review and consolidate the number of suppliers. Introduce service level agreements to improve the relationship between customer and agency, and ensure a better quality of staff and service. Reduce administrative and processing costs associated with the handling of invoices. Standardise pay and charge rates to ensure a level playing field. Supply up to date management information to improve visibility, legal compliance and quality control.

Approach:

de Poel was appointed as a partner to implement and manage the entire process from the initial spend analysis, to establishing new pay and charge rates and the selection of agencies.

Implementation:

Following the successful completion of a pilot study demonstrating the benefits and costs savings delivered by the de Poel solution, it was agreed that in order to generate maximum impact, a geographical approach to implementation would be most appropriate.

Phase 1 consisted of a mixture of all 12 Midlands' locations forming the basis of the national rollout. At this stage, de Poel visited each site identified by Ryder to gather vital information on existing pay and charge rates, service levels and staffing requirements. Once the data had been analysed de Poel were able to recommend a new pay-charge structure and propose a series of management recommendations including the implementation of their e-tips®  system.

e-tips®  is a web based electronic timesheet and invoice processing system which facilitates agency invoice reconciliation and processing by presenting Ryder with a single consolidated invoice. These proposals were discussed and agreed with the Ryder senior management team. All existing suppliers were invited to attend a series of presentations detailing the new pricing structure and service level requirements. Those wishing to maintain their position as suppliers were asked to register their interest and submit a detailed supply proposal.

Having analysed the responses de Poel were able to submit a list of potential suppliers to Ryder and subsequently build an agency panel. Once in place, potential e-tips®  system users across all client and supplier sites were trained by de Poel. Phase 2 which is currently under way, consists of the roll out of the de Poel solution to the remaining Ryder sites.

Results:

Cost savings of between 5-8% achieved. Customers now experience a previously unattainable level of temp quality and customer service in a once fragmented spend area. Project implemented to a planned schedule in a timely and efficient manner with minimal disruption to operations. Considerable reduction in agency invoices and subsequent administrative costs, allowing the redeployment of time and resource elsewhere in the business. The Midlands' agency supplier panel was condensed from 98 down to 19 suppliers. 98% compliance was achieved as the majority of spend is channelled through the approved agency panel delivering the maximum benefit and cost savings to the client.