How our MSP solution transformed a global logistics company

Context

In 2018, a global logistics company approached us as they lacked visibility over their contingent workforce, resulting in excessive spending. They sought our expertise in governance and compliance. In 2020 a major global logistics company and competitor acquired the company, triggering an immediate surge in demand for project delivery resources. This increase in demand presented a significant hurdle as the company found themselves grappling with an overwhelming and unstructured contractor landscape.

Challenge

One of the most pressing issues our client faced was the lack of clarity regarding the number of contractors engaged by the client. Initially assuming they had around 100 contractors, our audit revealed that they had more than 300 contractors working for them. This lack of transparency was a substantial challenge in itself, as the company was unable to effectively manage or leverage its contractor resources and skills.

This was further compounded by the fact that some contractors were operating without proper contracts in place. This created a compliance issue, exposing the client to potential legal risks such as professional indemnity, public liability, and incomplete documentation. Additionally, the absence of an agreed rate and pricing structure amongst suppliers made it difficult to track and control costs.

Recognising these challenges, our client wanted to establish a more efficient system for organising and overseeing their extensive and unorganised pool of contractors. Key objectives included reducing potential compliance issues and associated legal risks while achieving greater transparency within their contractor ecosystem.

The client wanted a partner who could provide a solution that tackled all ongoing issues and future challenges that could arise. Their decision to use Flexhuis’ MSP solution was based on our ability to meet various objectives for the client, including enhancing contingent workforce management control and visibility, ensuring better compliance, and realising cost savings through streamlined, world-class hiring practices.

Our Solution

Our primary objective was to implement a comprehensive and effective MSP (managed service provider) solution that not only achieved immediate savings but also ensured sustained efficiency and removed any non-compliance risk.

A pivotal step in this process was the implementation of a pre-agreed rate card for contractor rates with structured margins. These were not only applied to our services but also extended to other agencies, as we took on the management of their Preferred Supplier List (PSL). This approach ensured that cost control measures were established from the outset and remained an ongoing priority.

In addition to cost management, we conducted an audit to gain clarity on the contractor landscape. This process revealed a significant number of contractors – over 300, a far greater number than initially assumed. To streamline operations, we reviewed where resources were needed and transitioned the contractors deemed necessary under our supervision.

We also assisted the client in navigating compliance with IR35 legislation, ensuring they remained in alignment with legal requirements. Additionally, we worked diligently to confirm that all contractors held appropriate contracts, possessed the correct right-to-work documentation, and carried the required insurance coverage. Through this stage, we ensured potential legal and operational risks were mitigated.

Furthermore, we established a structured approval process to support all new hiring requests. This involved setting up an approval system to facilitate transparency and awareness among managers, finance, and leadership regarding upcoming resource requirements.

To enhance reporting and further streamline operations, we introduced an ATS (Oracle-based Taleo system). This transition allowed for centralised contractor management, simplifying processes for our client. We implemented regular reporting, providing them with detailed cost breakdowns, contractor lists, and contract durations on a weekly, monthly, and semi-annual basis – providing them with complete transparency over their contractor community.

As our partnership progressed, we continued to identify areas for service improvement. For instance, we collaborated with the client to enhance their permanent hiring campaigns and onboarding processes for contractors. This included providing comprehensive onboarding packs to ensure a consistent and positive experience for all candidates, setting clear expectations, and aligning their goals with the project’s objectives.

In summary, our MSP solution addressed the client’s immediate cost-saving needs while establishing ongoing compliance, cost control, and efficient resource management. Our partnership evolved beyond the initial pain points, focusing on delivering a comprehensive and sustainable approach to meet their needs.

Results

Our comprehensive MSP solution delivered a range of significant results that greatly improved the client’s hiring process.

We achieved a 100% delivery rating for all approved roles through our MSP, demonstrating our commitment to timely resource allocation.

To ensure transparency, we generated monthly and weekly reports, offering insights into resource allocation and project progress. The delivery team achieved a 95% delivery rate, underlining the efficiency and reliability of our approach, with the remaining 5% fulfilled by the Preferred Supplier List (PSL). These achievements translated into substantial cost savings of £1.8 million.

Our MSP was designed to be flexible and focused on delivering efficiency and cost savings, enabling us to respond quickly and effectively to the client’s evolving demands. The contractor base expressed high levels of satisfaction, with a 95% approval rating from a contractor engagement survey, affirming the positive impact of our solution.

Post implementation of our MSP solution, we continue to make significant improvements across on-boarding and off-boarding processes, enhancing efficiency and reducing administrative burden. We continue to identify opportunities for improvements, for example in the role approval and extension approval processes, which could benefit from streamlining to increase flexibility and agility.

Find out more about Flexhuis’ MSP solution or contact us at hello.uk@flexhuisglobal.com

How our MSP solution transformed a global logistics company

Context

Challenge

Our Solution

Results

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