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Case Study:
FMCG
THE SITUATION
The client came to RightSpend because:
- They had been provided a rate card by their agency, with a staffing plan encompassing a single global average and they wanted more transparency.
- RightSpend identified that the agency’s grouping of titles (junior and senior) was enabling them to inflate hourly rates – applying high-end senior rates to junior staff.
THE ACTION
RightSpend’s system was utilised to:
- Accurately assess hourly rates by job function across all 43 of their global markets.
- Identify the agency hourly rates were 21% higher than the benchmark.
- Highlight the agency were also using a higher overhead rate and profit margin to develop its rates.
THE RESULTS
The client was able to realise:
- A 16% direct savings reduction
- Renegotiated rates
- Amended contracts to ensure that key metrics, including Hours per FTE and overhead rates were made country specific.
