Pharmaceuticals
Since 2009, Randstad has held a £150,000,000 per annum contract to supply temporary labour to 22 locations in the UK and US for a global pharmaceuticals company.
The UK operation covers seventeen sites: two of which are white-collar, and the remainder are light industrial (average headcount of 750).
Since contract commencement, process efficiencies introduced by Randstad have achieved £835,000 in savings (October 2009 to December 2010).
The requirement
The client required:
- a single supplier to improve administrative efficiency
- TUPE transfer of 750 workers during an implementation period of X weeks
- consolidation of pay rates
- re-organisation of job roles
- rationalisation of contract arrangements
- provision of induction services
- regular generation of detailed management information
- a proper reporting and monitoring structure and schedule
Randstad's basic service
Randstad mobilised an 15-strong team to manage the comprehensive implementation of the contract within the required timescales. This included 100% successful TUPE transfer of the workforce. 11 designated, full-time staff were appointed to handle the contract on an on-going basis. Structures and procedures to address the client’s requirements were established and rolled out across the implementation period.
£835,000 of savings
Randstad undertook an analysis of working practice on the 24/7 manufacturing/logistics site and advised the client that substantial savings would be achievable through alterations to shift patterns.
This involved:
- switching from a 2-shift to a 3-shift system
- reducing overtime
- reducing overmanning
Expressed in costs per employee per 24-hour period the switch realised the following savings
| days |
2-shift |
3-shift |
saving |
| weekdays |
£247.20 |
£211.84 |
£35.36 |
| saturday |
£314.96 |
£322.32 |
£(7.36) |
| sunday |
£385.20 |
£380.32 |
£4.88 |
The total cost per worker for a seven day period, working 24/7, under the 2-shift system was £1936.16. Under the 3-shift system, this dropped to £1,761.84. A saving of £174.32 per week.
Put it another way: Randstad's process analysis and implementation of revised shifts realised a saving of £1.04 per man hour.
The conclusion
Genuine, substantial savings in the deployment of contingent labour come from intelligent analysis and observation, partnership working on change, and the implementation of revised working practices. Savings of this order do not accrue through shaving hourly margins by small percentage points.