Making independent and services workers visible, we expanded a global MSP program to include services workers and independent contractors.
Visibility across $650M in spend under management.
Global implementation of easy-to-use services procurement technology and processes.
10% cost reduction from proper worker classification.
Built and implemented comprehensive supplier compliance policies.
15% cost savings from rate card negotiations.
Boosted supplier performance visibility.
10% cost savings from competitive bidding.
Recognized by Everest Group as “among the top 1% most comprehensive contingent labor management arrangements in the world.”
Making the invisible, visible.
The organization’s internal procurement team was looking for support with small to medium-sized service engagements. Their existing systems provided only high-level visibility and they were concerned about supplier and independent contractor compliance with minimum controls in place. It was also unclear whether workers were being classified correctly, and if they were optimizing all savings opportunities from their services engagements. We leveraged our internal expertise and industry-leading technology to develop a solution that helped them to see further, ensure worker classification compliance, control services spend, and drive supply base optimization.
Building on existing processes.
We shaped this services procurement solution around the organization’s existing buying processes. We used this structure to inform best practices and utilization of technology while ensuring that new ways of working would still encourage efficient buying processes and adherence to policy requirements. By molding this solution seamlessly around existing frameworks, we were able to deliver a user-friendly solution that was both effective and intuitive.
Creating consistency.
One of our client’s key challenges was a lack of consistency in how independent contractors and suppliers were being engaged across the business. We created standardized statements of work (SOWs), put processes in place to engage suppliers through fair and value-driven terms, and created a formalized supplier management program to closely monitor and support supplier performance using scorecarding and formal supplier development. These changes continue to ensure services are delivered, on-time, on budget, and compliantly.
Delivering cost savings.
We are always looking for new opportunities to drive cost savings. Our dedicated team guide managers to the most effective buying channel and monitor spend throughout the lifecycle of an engagement, using technology to ensure any increases are reviewed and approved if appropriate. We are also consistently monitoring market rates, negotiating supplier renewals, benchmarking costs for new requests, developing pre-negotiated rate cards, and overseeing competitive bidding. Ensuring that workers are consistently classified correctly is another way that we deliver meaningful cost savings for our client.
