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Case Study - Shell

10/07/2019
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Client: Shell
Region: Aberdeen
Project: Contractor transition and management to deliver cost savings
 

Fircroft provided recruitment services for Shell


Overview 

Shell, a major international exploration and production company is active globally. Fircroft has recently been appointed as their sole contractor management partner in Aberdeen responsible for in excess of 130 contractors.

The Situation
Shell had agreed to engage Genesis Oil & Gas (Engineering Consultancy) to complete packages of engineering work on their behalf.  
This required the secondment of several Genesis employees to Shell’s site to enable familiarisation with the relevant projects and integration with the relevant Shell workforce.
Over time the workload issued to Genesis increased but the relations hip strayed from its original intention.   Genesis engaged Temporary Workers (via an Agency) to complete some of the work and they too were seconded on site.
The original ‘packages’ of work became a continuous service provision and ultimately all the 130 Genesis workers on site were being managed by Shell Employees.  
Therefore, the original Consultancy effectively became ‘body shopping’ and further to some Fircroft prompting, Shell identified that the added value typically provided by an Engineering Consultancy was not apparent under the existing relationship and the cost of the services was significantly inflated.

Fircroft Solution
Further to some prompting by Fircroft, Shell reviewed their position and decided to terminate their contractual arrangement with Genesis.
Fircroft submitted a competitive proposal which was accepted, and all 130 workers were notified of an impending transition from Genesis/Current Agency to Fircroft.
Over a 4-week period, Fircroft met each worker individually, set up appropriate contracts and worked with Shell to manage the invoicing and Purchase order amendments effectively.

Cost Saving

Shell made significant cost savings in two areas
1. Negating the Consultancy Fees from Genesis saved in excess of £2m per annum
2. In recognition of the additional volume of business Fircroft offered a rate reduction for their existing personnel with Shell and for the transitioned workers saving a further £700,000
3. Total Savings from the exercise were in excess of £2.7m per annum

Learn more about how Fircroft can help your company’s success!

 

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