Client:
Somerfield is one of the UKís largest high street supermarket chains with more than 1,000 stores throughout the country.
Goods are distributed to stores around the country from Somerfieldís twelve distribution centres split into five operating regions using 3rd party logistics companies Exel and Wincanton.
With regular seasonal and promotional store activities it is essential for depots to receive a consistent supply of good quality temporary staff to support the high peaks and troughs in daily/weekly volumes.
The clientís issue/s:
Annual contingent workforce spend of over 12m on drivers, warehouse and administrative staff. Significant administration and back office costs as a result of the volume of invoices and timesheets processed. Over 200 agencies supplying temporary resource across the country, with a myriad of charge rates and overtime calculations in place for each position and considerable variance in the quality of supply.
The solution:
Review and consolidate existing suppliers. Enhance service delivery through the introduction of service agreements and the establishment of regular meetings between customer and supplier. Renegotiate and standardise pay, charge and overtime rates. Increase the accuracy and reduce the administrative costs associated with the processing of invoices and timesheets.
The approach:
Implement a unique solution to manage temporary agency selection, supply and spend and improve the overall quality of service received.
Implementation:
de Poel began work with Somerfield in May 2005 conducting a thorough review of agency usage and spend, pay and charge rates and service levels across all depots. As soon as the information had been analysed, de Poel presented a series of recommendations to the Somerfield senior management team. These included the implementation of standardised regional pay and charge rates and the rationalisation of suppliers. Once these recommendations had been discussed and approved, existing Somerfield agencies were invited to attend a series of presentations outlining the proposed changes and were asked to confirm their intention to continue supplying staff. From the responses received de Poel was able to propose a list of suitable suppliers, from which a select agency panel was agreed and set up. e-tipsô, de Poelís web-based electronic timesheet and invoice processing system was then implemented throughout all client and supplier locations. In addition to presenting Somerfield with a single, consolidated invoice, etipsô also provides 100% invoice accuracy and instant access to real time management information across the company.
The results:
Direct weekly cost savings of 6% achieved. Suppliers condensed from over 200 to a panel of 65 approved agencies. The establishment of formal service agreements and regular meetings with panel agencies to ensure pre-agreed key performance indicators are being accomplished and that a better quality of service is maintained. Agency invoices consolidated to a single, electronic invoice, dramatically reducing administrative costs and freeing up staff time. In addition the successful implementation of e-tipsô within the Somerfield distribution network has led them to investigate the possible implementation of two further de Poel systems, addô, the agency driver database and sub-eô, the electronic subcontractor management and invoice processing system.
Standard implementation time for a project of this size is normally 13 weeks, however de Poel successfully managed to put their solution into action across the depots in just eight weeks. Both the sites and supplying agencies responded well to the short timescales which resulted in cost savings being delivered five weeks earlier than planned.
Somerfield Case Study
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