KellyOCG announces major services procurement outsourcing contract
KellyOCG, the Outsourcing and Consulting Group of Kelly Services has announced it has signed a Letter of Intent to enter into a major services procurement outsourcing contract with leading international mining group Rio Tinto (RIO) in Australia.
The Contingent Workforce Outsourcing (CWO) practice of KellyOCG will leverage its experience in delivering services procurement programs while utilizing its global footprint to support Rio Tinto's labor and supplier management strategy.
"Based on Rio Tinto's global presence and cumulative spend in services, this program is designed to become one of the largest and most innovative programs in the industry in terms of size, scope and global scalability," said Rolf Kleiner, senior vice president and general manager, KellyOCG.
"We choose to work with KellyOCG based on their expertise as a workforce managed service provider and their commitment to the Australian market," said Scott Singer, Global Head of Procurement, Rio Tinto. "Nearly half of Rio Tinto's 100,000 strong global workforce is comprised of contractors and a key driver of this program is improving contractor compliance with our Health, Safety and Environment (HSE) standards. This program is also expected to provide major improvements in our contractor administration process through enhanced governance and increased data visibility."
Encompassing a broad spectrum of operational activities from supporting supplier qualification and contractor on-boarding, through sourcing and transactional management, the partnership is an entirely new model for contractor administration within Rio Tinto. Expected key outcomes include:
strengthening of supplier qualification and induction processes to support improved HSE performance of Rio Tinto suppliers
a range of commercial benefits achieved through greater process efficiency
enhanced relationships with the supplier community
"We are very pleased to be partnering with an organization committed to innovation and program excellence such as Rio Tinto. From the outset they have recognized the potential for business transformation through this approach," said Kleiner. "The scope of the partnership speaks to the increasingly strategic nature of workforce and services procurement. For KellyOCG it represents a continuing evolution of both our CWO practice as well as our industry expertise in the global resources and energy space."
With this agreement, KellyOCG becomes the only Managed Service Provider with customers engaged on programs scaled to support over $1billion in spend across all three regions of the world.