A UK FTSE 250 world leading provider of mobile power solutions with a staff of 6000 who deliver solutions to clients in over 100 countries.
Odesma was engaged to provide expert support and deliver savings, enhance skills and deploy technologies that would accelerate the organisation’s procurement excellence programme, a key component of a company-wide global transformation programme.
Within weeks of being appointed, Odesma had undertaken significant analysis of the procurement operation and third party spend data. This identified a number of areas where significant savings could be made.
With over 5000 staff globally and a significant $Multi-Million spend on recruitment agency fees across a fragmented supplier base within the Global business recruitment was an early target in the savings programme being implemented by ODESMA.
Having already carried out a pilot programme in the UK, Northern Europe became part of the roll out of this.
To review and negotiate new recruitment agency fees and reduce the overall cost of recruitment
Pulling together a team from HR, each of the Business units and an internal Lean Six Sigma resource, Odesma mapped the entire process from “I have a need…” through to the fulfilment and on boarding of a new members of staff.
There were a total of 138 steps in this process within the UK alone.
Undertaking a Lean Six Sigma approach to establish which of these processes could be eliminated, the team managed to bring this down to just 38 and at the same time opened the idea that there were alternative channels to the market – internal referrals, graduates, CV’s on file.
However, it was clear that this would require some additional internal work to help guide and manage this process.
So, dovetailed to this programme of work, an Application Tracking System (ATS) was deployed together with a full-time resource to manage it. They are able take a requirement from a hiring manager and advise what CV’s may already exist on file to fulfil the position or if not, on the appropriate channels to go through to successfully reach the right candidates.
At the same time, the Odesma team undertook a full review of the 40 or so agencies on the preferred suppliers list (PSL). After applying a robust set of criteria, a refined fit for purpose PSL of 10 agencies was created, all on new terms.
Work undertaken by Odesma has resulted in the client adopting a no cost (internal), low cost (social, digital, fixed fee recruiters, job boards etc.) and only as a last resort high cost (agency) process, managed by the new ATS. Pushing out the recruitment requirement to an external recruitment agency is no longer the default position for the business.
Significant savings have been made by reducing the preferred supplier list from over 40 recruitment agencies to just 10 all on agreed new terms, with agency spend being halved.
By delivering a quick and positive impact on both price and operational service levels on a legacy contract that seemed unlikely to be bettered, the central Technology Services team gained sufficient confidence to start to open other potential savings opportunities for the business