We entered our Master Vendor relationship with elemense with some hope of yielding tangible benefits, but also concerns that our access to the broad range of skills we required would be significantly diminished. In a very turbulent first year, we have fully realised the benefits that we had based our business case upon with negligible downside. This is due to a very positive and professional relationship between elemense and Ricardo which has really benefited from the attention that both of us can pay to a one to one dialogue compared to our previous often superficial transactions with multiple suppliers.

Engineering Director, Ricardo

Ricardo

Ricardo is a leading provider of technology, product innovation, engineering solutions and strategic consulting to the world's automotive, transport and energy industries. Combining business, product and process strategy with fundamental technical research and the implementation of large-scale new product development programmes, Ricardo is able to take on the greatest challenges including business strategy and restructuring, process re-engineering, product design, development, engineering, testing and systems integration. With a network of advanced and well-equipped technical centres in the UK, North America, Germany and the Czech Republic, Ricardo serves a wide and balanced customer base represented by the leading global automakers, vehicle component and system manufacturers, and automotive regulatory agencies. They also serve motorcycle, heavy duty truck, off-highway, military vehicle, marine and locomotive propulsion system manufacturers, as well as leading teams in all formulae of motorsport. Their new energy customers cover developers and investors in wind, wave and tidal power systems as well as energy efficiency improvement technologies, micro CHP and fuel cells and their associated control and electrical systems.

The need to minimise the environmental impact of future vehicles is a major driver for their own technology research programme, one of the principal means by which Ricardo maintains its technological edge. Recent benefits of this approach are apparent, for example, in the leading position Ricardo now occupies in the development of hybrid vehicle systems and of clean diesel and gasoline engine technologies offering improved fuel economy, reduced CO2 and low regulated exhaust emissions. Some of the technology and processes developed in the automotive field are finding rapid application in the new energy sector. With their commitment to excellence, industry leadership in technology and knowledge, they declare that their greatest asset is their people, approximately 70 per cent of whom are highly qualified multi-disciplined professional engineers, consultants and technicians. Their vision is to make Ricardo the natural partner of choice for all their customers in all sectors.

Background

elemense had worked with Ricardo for 10 years on a contingency basis as their Preferred Supplier for recruitment services. In 2008 Matchtech signed a Managed Service Agreement to supply all temporary staff across their 3 UK locations and 5 international sites as their Master Vendor. The key drivers for using elemense as a managed service recruitment provider included:

  • Major Direct and Indirect Cost Savings
  • Eradicate or Minimise Leakage
  • Known Fixed Costs
  • Rationalised Supplier Match
  • Single Point of Contact for All Recruitment
  • Consolidated Invoicing
  • Standardised Recruitment Processes Across Multiple Sites
  • Set Service Level Agreement with Key Performance Indicators
  • Comprehensive and Accurate Management Information
  • Web-Based Vacancy Management
  • Account Management Team to Provide Recruitment Expertise to Managers and Contractor Care

Implementation Phase

When implementing the Master Vendor contract elemense identified process improvement opportunities via Stakeholder interviews where the pre-existing processes were mapped and re-engineered to the client's specific requirements and "wish-lists". There were more than 100 contractors working from various agency sources in addition to approximately 50 direct contractors who were identified as a potential employment inference risk to Ricardo. These were smoothly migrated to the management of elemense mitigating the associated risks and with minimum disruption to the business.

To assist elemense in delivering to the needs of Ricardo an effective and varied 2nd Tier supply chain was established and new, lower mark-ups agreed. 2nd Tier Suppliers support elemense across all skill sets, but predominantly within finance and administration including niche areas such as H&S, HR and procurement. All 2nd Tier supplier transactions are managed using a proprietary web based recruitment tool called Inform. An office within Ricardo's UK Head Office in Shoreham By Sea was assigned for the use of the dedicated elemense Client Relationship Manager, enabling elemense to provide recruitment support to the clients and contractor care.

Master Vendor Programme is Launched

The key benefits which have materialised for Ricardo by using elemense as their Master Vendor provider include:

  • Transparent Pricing Model Meaning Visibility of Spend and Margin Data for All Partners
  • Highly Developed Vendor Management and Robust Supply Chain Ensuring Key Posts are Filled Quickly
  • Further Cost Savings Through Margin Reduction, Key Tiered Supplier Negotiation and Client Workload Reduction in Recruitment Activities
  • Enhanced Understanding of Client Needs Through an Embedded On-Site Client Relationship Team
  • Reduction of Time to Hire Through Improved Client Knowledge
  • Process Efficiencies Realised Through the Implementation of elemense's Web-Enabled Recruitment Technology
  • Mandated Process with Key Stakeholder Sponsorship Meaning We Have Moved From a Transactional Relationship to Become a Trusted Integrated Partner

In addition to realising these key benefits listed above elemense has also worked with Ricardo on several other recruitment initiatives:

  • Introduction of a Self-Billing System Providing Vast Time and Process Efficiencies
  • Improved Temporary Worker Recruitment Authorisation Process, Giving Greater Control and Visibility of All Recruitment Activity
  • Provision of a Customised Temporary Worker Induction Process Meaning "Time to Perform" is Optimised
  • Design and Delivery of a Contractor Outplacement Programme When the Economic Climate Necessitated a Reduction in the Contractor (and permanent) Workforce, Protecting the Client's Brand by Handling this Programme with Sensitivity and Care
  • Management, Delivery and Administration of the Client's Annual Graduate Recruitment Programme which Successfully Provided the Business with 24 Graduates
  • Quarterly Provision of Comparative Salary Data Across the Client's Most Commonly Recruited 15 Job Titles Across Their Own Market Sector

In the first twelve months of operation, elemense achieved cashable cost savings for Ricardo of £250,000.

elemense have managed 140 roles for Ricardo in its first year. As its first tier supplier, elemense operations filled 71% of these vacancies, reduced the temporary worker "time to hire" from 19 days down to a remarkable 4 days, and have achieved a very impressive interview to placement ratio of 1:1, which denotes a tangible in-depth understanding of the client's needs.