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The auction, where agencies were invited to bid for contracts at descending prices, took place in February and saw the company's 500+ suppliers first reduced to 72, then at a later stage, to 24.
According to an internal e-mail sent to workers at Glaxo and forwarded to Shout99.com, the 24 remaining suppliers, which include: Parity, Elan, Spring, Hays, Lorien, Abraxas, Eaglecliff, Volt, Centric and MSB, all have 'databases of 100,000+ candidates' and 'will meet 85 per cent of GSK's requirements.'
From mid-May all new IT contingent workers at GSK will be sourced from Parity, Elan, Spring, Hays and Lorien.
The e-mail said the six-month preferred supplier process had been introduced as part of a long-term overhaul of 'a supplier database that was out of control and impossible to manage.'
It added: 'We have streamlined the procurement process with the additional benefit of significantly reduced costs.'
Glaxo's global spend on 500+ IT contingent workforce suppliers was £66 million, before the cuts were introduced.
The company said most of these suppliers were: 'regionally focused, and had limited and inconsistent contract management processes. In addition to the cost issues, the current methodology was not sufficiently supporting GSK business requirements - assurance of supply, quality, cost, service, innovation and regulatory.'
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Richard Powell, © Shout99.com 2002
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