We were engaged by a large-scale service provider for the operation, maintenance, and management of public and private assets. Our client needed to ensure a direct cost reduction in the provision of contingent labour (ad hoc short-term hire) across hundreds of client-side contracts.
We knew we were about to undertake a significant change to the way this service business did their daily work. Our main objectives were to reduce service failures, mitigate risks related to safety and quality, and remove uncontrolled overhead. To achieve those goals, we needed to re-engineer the processes to ensure compliance with company policy at the business level. As one of our strategic approaches, we outsourced the management of contingent labour providers to ensure higher competency and better control.
The corporation increased profits 10-fold by optimising supply chain management, including reducing the supply base from 240 to 24 contracted providers. This improved supplier control, quality, and cost-effectiveness and allowed for stronger partnerships and innovation. We aligned hundreds of contractual commitments without disrupting services. The introduction and progressive transition to new tracking tools served as key structural elements ensuring a smooth transition.
