ESOS Success Story Jungheinrich

Replacement of an existing MSP service for improved transparency and control

Information about the customer
Leading provider for intralogistics
Industry: Engineering, logistics software
Number of employees : 18,000
Location: 40 countries internationally

The reorganisation of the procurement process led to a noticeable satisfaction of all parties involved, increased transparency and resulted in cost savings.

Information about the customer
Leading provider for intralogistics
Industry: Engineering, logistics software
Location: 40 countries internationally
Number of employees 18,000

The reorganisation of the procurement process led to a noticeable satisfaction of all parties involved, increased transparency and resulted in cost savings.

Figures & facts about the collaboration

Key Facts
Management of over 30 suppliers
Managed spend of €7-20 million p.a.
The scope of services covers the entire engineering sector and includes both service contracts and temporary employment.
Verschlankung bestehender Prozesszeiten um 51%
Challenge: 

The recruitment of external resources in the engineering area was originally entrusted to a managed service provider (MSP). However, the expected transparency in the tendering and staffing process did not materialize. In addition, the new legal requirements for temporary employment were not implemented satisfactorily.

There was a significant risk of an uneven distribution of requests and preference for a few suppliers, which led to dissatisfaction and low supplier commitment. These challenges jeopardized the collaboration and required urgent action to improve processes and transparency.

Implementation and optimisation through Hays:

Hays was able to replace the existing service with a standardised, structured and transparent procurement process. Our service team has been instrumental in supporting the success and high level of satisfaction:

Replacement of the existing service
Introduction of a standardised, structured and transparent procurement process.
Neutral interface
The service team acts between the customer and supplier companies and ensures clear communication on candidate and process-relevant topics.
Increase in supplier satisfaction
Thanks to the more transparent process, we were able to significantly increase the commitment and satisfaction of our suppliers. This led to a significant reduction in response times and an increased number of offers per request.
Savings concept
Development of a concept to reduce costs, whereby cost-relevant aspects in the procurement process are strongly considered.
Review of billing rates
Billing rates of candidates are reviewed and renegotiated if necessary.
Implementation of the VMS
The Vendor Management System (VMS) 3 Story Software (3SS) is central to supplier management and emphasises the neutrality of the programme.
Regular reporting
We ensure that our customers are continuously and comprehensively informed about the status and availability of active resources as well as all relevant MSP data and activities. This ensures transparency and creates a solid information base to make informed business decisions

Conclusion

The close collaboration and open communication between the client company, the MSP Service Delivery team and the supplier companies have contributed significantly to the success of the new programme. The resulting transparency enabled the client company's challenges to be met. Furthermore, the active review and renegotiation of hourly rates very quickly resulted in significant cost savings.

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