Capita is the UK’s number one provider of business process outsourcing services (BPO).
Business Process Outsourcing (BPO) is the external provision of business functions or processes by a third party organisation. Often facilitated by information technology to drive lower costs and increase productivity, the BPO market continues to widen and expand as the number of organisations seeking to outsource operations grows.
THE CHALLENGE
Capita’s 250 different business divisions used in excess of 100 recruitment suppliers on individual and wide-ranging commercial Terms. This created a significant cost in management time, compliance issues arising from lack of consistency, variable charge rates and a variety of service level issues. In addition, the processing of 18,000 agency invoices a year created a significant back office cost and a drain on the
overall business.
Capita needed to find one supplier who could manage their end-to-end recruitment process incorporating ordering, supply, payroll, invoicing and the implementation and maintenance of a structured vendor management process.
THE SOLUTION
Blue Arrow set up an Account Management Team to work with Capita to develop a standardised Service Level Agreement based on UK-wide Key Performance Indicators. Pay rates and uplifts were also standardised across all divisions and all supply agencies.
Blue Arrow‘s e –procurement system “Hyphen” was implemented across the business. This transparent system provides Capita Managers with:
- an on-line ordering and invoicing system for temporary staff
- electronic time sheeting and authorisation
- real-time Management Information
- access to a wide choice of candidates by facilitating engagement of second tier suppliers through agreed contracts
In order to ensure a smooth implementation of the new system into the company, we introduced a programme of workshops to gain buy-in from Capita Hiring Managers and support them through the initial stages and ongoing.
THE RESULTS AND BENEFITS
- The successfully implementation of a central order process supporting a vendor management structure to achieved 100% fulfilment of Capita’s requirements.
- Compliance issues have been addressed and processes have been incorporated into the Service Level Agreements. In particular referencing had been a key issue for sites, due to the number of agencies and inconsistency of service. We introduced strict criteria to ensure that all references were checked, allowing risk to be managed in an effective way.
- Capita has been able to reduce their variable margins nationally and consolidate their invoice process, the latter saw a reduction from 18000 to 1000 invoices in the first year
- Temporary rates, temporary to permanent fees and permanent fees have all been agreed nationally providing standardisation and cost savings.
- In addition, Capita also received instant cost savings through the transition of over
200 temporary agency workers.
- Capita Managers have access to real time Management Information, allowing them
to measure their business more effectively.
- Working successfully with Capita, Blue Arrow has delivered additional services such as VAT Mitigation and enhanced referencing for FSA regulated businesses, On site testing systems and Consultancy Services.
What Capita said about us
"Blue Arrow is the only Agency that truly understands the concept of a Master Vend Agreement, that is not to keep all of the bookings to itself but to utilise its suppliers in a fair manner to ensure the clients needs are fulfilled."
Heather Kitto
Capita Director
