Visy is a leading provider of recycling, paper and packaging products and services with around 5000 employees in Australia and New Zealand.
Visy currently spend almost $70 million annually on contingent and permanent recruitment across their recycling, paper, and packaging divisions.
At the time MLS were engaged, Visy were using over 80 suppliers to meet their labour hire and recruitment requirements. This number had grown over many years as individual sites developed relationships with local service providers with many more being added when Visy acquired Southcorp’s packaging businesses in 2001.
With no central coordination of Visy’s labour hire / recruitment spend and activity across so many suppliers, significant variation in fees and margins was only one of the issues identified.
It was becoming increasingly difficult to effectively manage contract and HSE compliance across a large number of labour hire providers.
In some areas Visy was potentially being exposed to increased risk through the lack of a standardised approach to supplier contracting.
The Solution
First MLS undertook an analysis of Visy’s current labour hire and recruitment spend with the aim of consolidating supply to a panel of around 10 preferred suppliers.
Armed with supplier fees and margins as well as feedback from Visy divisions/locations on supplier performance, MLS then began the process of rate negotiations with shortlisted suppliers.
Once the preferred panel had been finalised, MLS then arranged the transition of all labour hire candidates from incumbent providers to preferred providers.
With candidate transitions completed, MLS moved to ongoing management of the preferred supplier panel in delivering Visy’s permanent recruitment.
MLS completed the entire process of supplier spend analysis, negotiation of reduced rates, supplier consolidation and candidate transition within 4 months.
The Results
A reduction in the number of recruitment and labour hire providers from 80 to10.
35% reduction in recruitment fees
Improved candidate match to role through fewer providers developing a better understand of client business, roles and candidate requirements, supported by MLS reinforcement of client needs and screening of candidate CVs for key roles
Shorter lead-times due to MLS management of roles in progress.
Greater visibility to spend and activity
Effective risk management through a standardised approach.