Case Study 2
Supplier Procurement Costs Reduced by 20% for Global Eye Care Company
The Challenge
A global eye care company was experiencing high costs associated with its IT staffing supplier procurement process. The company's Rochester, NY, location was spending more than $1 million per year on supplier management tasks. It quickly became a priority for the company to identify inefficiencies in the current process, make adjustments, reduce costs and establish long-term continuous improvement objectives.
The Solution
Kelly IT Resources was contracted as master vendor to handle all IT staffing at this location. An efficient management process was implemented that removed unnecessary steps from the current process, resulting in significant savings.
The Kelly team analyzed the company's current supplier procurement process and identified five key areas as primary targets for improvement:
- Requisition
- Order Fulfillment
- Purchase/Change Order
- Invoicing/Accounts Payable
- Reporting
The Results
By transitioning the supplier procurement process to Kelly IT Resources, the company's yearly expenditures were reduced by 20%. This resulted from eliminating the time that the company's managers spent on the requisition, order fulfillment and purchase order/change order processes; more effective re-allocation of contracting resources; bill rate reductions; improved billing methods; and more detailed reporting for budgeting and auditing purposes. With the new process, the company also achieved a 25% reduction in cycle time.
As part of Kelly's commitment to continuous improvement, the following areas were identified for the next stage of the management process:
- Establish direct interface between Kelly billing and the customer's system
- Implement electronic timekeeping system
- Enhance on-line reporting capabilities
- Employ direct placement staffing
- Evaluate other company locations for potential roll-out of master vendor model nationwide
- Improve forecasting accuracy for purchase order and staffing needs