Multigenerational MSP for Transportation Logistics Company

Case Study

Challenges

Hiring Volume: 300-350 contractors/year
Roles: IT, administration, finance, engineering, HR, drafting, LiDAR technicians, and COVID-19 contract tracers
Geography: Central United States
Specific Challenges:

  • Cost savings: No standardized rate across all contract labor for the business.
  • Lack of centralized processes: Procurement spent a considerable amount of time educating hiring managers on contract labor and pricing.
  • Process adherence: Inconsistent onboarding requirements and rates with no system in place to accurately manage the tenure of contractors to ensure compliance with contingent worker guidelines.
  • Administrative burden: Hiring managers were inundated with supplier follow-up and feedback requests. The business was self-managing contract nuances and negotiations on a one-off basis.

Approach

Solution Type: MSP
Delivery Model: Full lifecycle contingent labor management
Highlighted Strategies:

  • Established complete overview of contingent labor utilization across the business, including:
  • Standardized rate card and supplier agreements
  • Instituted volume discount
  • Streamlined all administrative elements of the MSP program, including supplier contracts, invoicing, sourcing and managing suppliers, etc.
  • Established processes to handle and ensure all contingent labor approvals, including managing the tenure of contractors to stay within established guidelines.
  • Frequent and periodic rate parity and analysis to ensure talent is secured at market rates versus at a premium.
  • Created an onsite program manager role to assist with hiring manager education, relationship building, requisition management, onboarding/offboarding facilitation, contractor and supplier management, and contractor engagement.
  • Partnered with senior IT leadership in resource planning and resource management; provided enhanced reporting on the use of contingent labor to senior IT leadership.

Results

  • The total spend managed through the program has increased more than 230 percent over the last 12 years.
  • The quality of contractor hires and the program has continued to increase throughout the duration of the relationship. Results include:
  • Decreased average time-to-fill by 13 days.
  • Improved hire quality and contractor retention.
  • Decreased average bill rates by $23/hour.
  • Increased cost savings through the implementation of a volume discount.
  • Additional scope was added throughout the duration of the relationship.
  • Initially, the program supported IT contingent hiring only. Since then, HR, administration, finance, engineering, drafting, specialized technicians and COVID-19 contract tracers have been added to the scope of the program.
  • The program has also evolved to include payrolling and SOW expansion.
  • Enhanced supplier relationships.
  • Partnered with incumbent suppliers to ensure prioritization of client and to reduce supplier attrition by 50%