Wednesday 26th Oct 2016 - Logistics Manager

Agency strategy pays off for Ryder

Ryder had a significant annual temporary agency labour spend. More than 200 agencies were supplying the company with staff throughout the UK  resulting in numerous agency invoices and timesheets being processed at considerable cost. It chose de Poel as a partner to implement and manage the chnage process from the initial spend analysis, to establishing new pay and charge rates and selection of agencies.

It was agreed that 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 – 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.

Having analysed the responses de Poel was 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.

Cost savings of between 5-8 per cent have been achieved. Customers now experience a previously unattainable level of temp quality and customer service. Project implemented to a planned schedule in a timely and efficient manner with minimal disruption. 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 per cent compliance was achieved as most of the spend is channelled through the approved agency panel.