Pepsico One of the world’s leading drinks manufacturers engaged the global market with a view to implementing a delivery model that would deliver direct cost savings, improve performance and manage risk.

Posted 02 May 2021

In 2012, one of the world’s leading drinks manufacturer’s engaged the global market with a view to implementing a delivery model that would deliver direct cost savings, improve performance and manage risk.

The Scenario

Having worked with another global supplier, Adecco Group Solutions (AGS) were tasked with delivering 5% hard savings in year one, with fixed amounts in years two and three and the migration of 1,200 workers across 8 nationwide locations.

The Solution

AGS were quickly identified as the only supplier in the marketplace with the foresight to deliver a workforce management programme and savings target of this magnitude.

AGS leveraged the relationship between Procurement and Operations to challenge each site in order to initiate efficiency. Our onsite delivery team quickly identified multiple areas of wastage and provided an initial overview savings that could be gained. A programme was designed around the needs of the business and using the full might and resources a robust communications and implementation programme was executed.

  • Consolidated processes across the sites which had previously been disjointed, a direct result of each location being serviced and managed differently. This was achieved through strong Account Management overlay, strengthening and enhancing the onsite delivery teams.
  • Implemented a Time Management System across all sites.
  • Introduced a shift co-ordinator per shift to provide daily resource planning, workforce management and performance tracking and pro active management of core/flex labour
  • Introduced a Health and Safety Adecco Action Team to manage spot checks, near misses, provide accident reporting and attend regular meetings with the client Safety Action Teams.
  • Managed all Induction and On-Boarding which incorporated Health and Safety, Occupational Health, Site rules, Processes and machinery handling modules.

In 2013, as a part of continuous improvement programme Adecco implemented a KPLH, a formula that would enable the business to measure the level of product packaged per person, per hour, by machine-line, by site, across all UK locations. This formula transformed the way output was achieved and measured in the UK and subsequently is being rolled out in 56 locations across Europe.

Work Package Services

The Outcome

Two years into the programme Adecco have surpassed the original expectations of the business. Year 1 delivered circa £800k savings (£500k hard cash £300k indirect), with similar figures for year 2 predicted, all in addition to the lean workforce efficiencies gained. Our KPLH methodology is being rolled out as part of a plan to move to global MSP whilst the UK continues to drive excellence on a global level, with the implementation of new Optimum performance programme. 2015 will see the extension of our contract as, the Global Procurement Senior Sourcing Manager explains, “AGS continue to redefine the supplier partner relationship.”

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