A huge building finance concern needed huge contingent worker help. They got it.
By Chris Evans
Nationwide Building Society, the largest building society in the world today, was seeking a best-in-class supplier to address their supply-chain management challenges. The company provides comprehensive financial services such as residential and commercial mortgage lending, retail banking, personal investments, insurance, and treasury services.
Advantage xPO partnered with Nationwide to refocus its contingent workforce management strategy on the need to impact the following key objectives: cost reduction, process efficiencies, and business risk mitigation.
“When we undertook this exercise, we were intent on reducing and controlling our costs, mitigating any risks in terms of compliance with legislation and the FSA [Financial Services Authority] guidelines, and increasing our visibility through detailed management information,” says Frank Arthur, Nationwide’s procurement category manager.
Melanie Barnett, who is head of operations in London and leads the Nationwide account relationship, emphasizes the importance of leveraging global capacity on a regional scale. “Advantage’s workforce program clearly demonstrates that, even though Advantage xPO is part of a global organization with revenues of more than $3 billion across four continents, we are able to hone in on one specific region or marketplace and provide a solution that truly delivers against the needs of our partner,” she says. “I don’t believe this level of agility is often demonstrated by multinationals.”
Adds Karen Browne, president of Advantage xPO: “Our unique approach to talent acquisition revolves around our ability to effectively manage to three operational areas of excellence: people, process, and technology. This philosophy forms the cornerstone for success in our partnership with Nationwide.”
When asked about Advantage xPO’s ability to drive client value, Nationwide’s Arthur says, “One year on from implementation and I am delighted with the performance of Advantage xPO. Through effective pay rate and supply-chain management, xPO has significantly reduced costs and improved our utilization of contingent labor in terms of value for money.”
In 2008, Nationwide had evaluated its contingent recruitment practices. Nationwide discovered that, without a standard process and easy access to accurate market information, it was experiencing significant challenges in the management of its supply chain. Having prioritized these strategic requirements, Nationwide partnered with Advantage xPO to provide an on-site, vendor-neutral, contingent workforce management program.
The key objectives of Nationwide were to reduce costs, increase measurability, and reduce business risk. Through an extensive implementation program, Advantage xPO has created, introduced, and communicated a thorough program structure. The program is built upon performance metrics that enable Nationwide to measure cost savings and provide management information, thus supporting forecasting and financial decisions.
By leveraging the buying power of Advantage xPO and by centralizing the process, all recruitment is at market rate and the overall cost of supply has been reduced. It is anticipated that these enhancements alone will exceed the forecasted cost savings in year one.
The dedicated on-site Advantage resourcing team (ART) manages the full recruitment life cycle for all non-permanent requirements throughout the United Kingdom and covers all disciplines underpinned by an industry-leading, web-based vacancy management system (VMS). Through a centrally controlled system, Advantage xPO provides a consistent and auditable service for new starters. This ensures that referencing and vetting are thoroughly compliant for all non-permanent staff in line with Financial Services Authority requirements.
Nationwide had previously received a significant number of invoices annually, in most cases supported by an individual PO [purchase order]; the Advantage xPO program has introduced a single weekly invoice.
Other Benefits Realized
- Resourcing and management of all contractors and temporary workers;
- Single source of accurate, real-time management information;
- A single weekly invoice with one purchase order;
- Full on-boarding and off-boarding service managed by Advantage Global;
- Reduced business risk via a consistent, auditable referencing and vetting process;
- Efficient payment of the supply chain;
- Standard processes and controls; and
- Maintenance of contractor quality.
The program is on track to deliver cost savings of 22 percent during the initial five-year contract.
Chris Evans is program manager, advantage resourcing team, for National Budiling Society.