Case Studies

Major Manufacturer Case Study

Major Manufacturer Case Study

Client Success: Enterforce Client Realizes Substantial ROI and Intangible Benefits with Successful Implementation of "Vendor Independent" MSP Program. 

You are the Vice President of Human Resources for a major manufacturer.  You have recently been charged with an initiative to better manage your company’s contingent workforce by: enhancing controls, reducing costs, improving the quality of contingent workers, mitigating co-employment and contract risks, and enhancing the procurement and management of what is estimated to be a $50 Million annual spend. 

Your main challenge is lack of control and visibility. There is no central repository of contingent workforce information. Your organization has multiple approaches to acquiring and on-boarding temporary workers. There are multiple supplier models being used, and you are unable to fully use the available resource planning tools. Instead, each supplier is allowed to use their own technology and none of them communicate. Maverick spend has become rampant because you have no visibility into where or how much you are spending on contingent labor.  Bill rates are all over the map – costs are not consistent for like skills.  

How do you implement a program that will work across your company, and support your supplier network? This is how an Enterforce client employed a highly successful process to implement an enterprise-wide Managed Service Provider (MSP) program.  

Step One:  Establish Your Approach
The client’s lack of control over contingent worker spend was the biggest obstacle they faced. They had: 

  • No common data repository of contingent worker data
  • No meaningful, easily accessible reporting 
  • Multiple processes, technologies and business models (Supplier on Premise [SOP], preferred suppliers, picks up the phone, etc.)
  • Complete lack of visibility into maverick spend
  • Inability to ensure proper approvals and financial costs
  • Potential co-employment risks

In order to reduce their costs and gain visibility into their spend, the company needed to: 

  • Normalize bill rates
  • Enhance supplier competition
  • Leverage spend through national supplier contracts
  • Standardize/streamline the contingent worker life-cycle

This client approached the implementation of major changes by taking several key steps:

  • Establish Objectives:
    • Enhance controls
    • Reduce costs
    • Improve quality of resources
  • Build a Team:
    • Legal
    • Human Resources
    • Finance
    • Procurement
    • IT
  • Gain Executive Sponsorship:
    • General Counsel
    • Controller
    • Human Resources 
  • Choose Vendors:
    • Managed Service Provider (MSP)
    • Vendor Managed Service (VMS) Technology

Once the plan was agreed upon, team members were selected, sponsorship was confirmed, and vendors were engaged, the client was ready for the next step – Implementation. 
 

“Partnering with Enterforce had a number of facets/advantages: Most companies rely on project help where there are multiple facilities, suppliers, and different contracts- Enterforce’s service allowed Harley-Davidson to be more efficient, leverage spends and save money.  In fact, they helped us reduce our bottom line.  Over a 4 year period of time- we reduced our total spend 8% by lowering client cost and cost avoidance going forward”.

-Sr. Director Global HR Business Services

 

Step Two:  Organize Team and Establish Implementation Plan  

  • Establish Implementation Organization:
    • Key Stakeholders
      • Executive Sponsors
      • Champions
    • Functional & Location Support
    • Steering Committee
    • Operating Committee
    • Project Management
    • Functional/Technical Teams
      • Process
      • Metrics/Reporting
      • Technology
      • Change Management/Training
      • Supplier Transition   
  • Create Implementation Phases and Timelines:
    • Phase 0 – Install On-Site Program Managers, Implement MSP Processes and VMS Technology, and ‘Pilot’ program by Transitioning IS Approved Suppliers and Workers;  Duration of 3 months  
    • Phase 1 – Remove Professional/Technical SOP; Duration 2 months
    • Phase 2 – Remove Administrative SOP; Duration 3 months  
    • Phase 3 -  IS Infrastructure, All Locations; Duration  3 months
    • Phase 4 – Implement remaining CW’s, Implement Independent Contractors, Implement Interns & Co-ops;  Duration 2 months 

Step Three: Measure Results

  • Hard Benefits (First Full Two Years)
    • Improved Bill Rates and Reduced Expenses
      • 5.7%
      • $4.6 Million
    • Administrative Efficiencies
      • 30.5%
      • $306 Thousand 
  • "Soft" Benefits
    • Mitigate Co-Employment Risks
    • Ensure Independent Contractor Compliance 
    • Mitigate Contract Risks
    • Approval and Financial Controls
    • Reduced Rogue Spending 
    • Ability to Strategically Manage Contingent Workforce
       
  • Lessons Learned
    • An organized implementation plan helps ensure and decrease the total implementation timeline
    • Select a good MSP who knows the staffing industry in your area
    • Interview your MSP’s Project Manager and ensure you know the roles  
    • Change management is key. Communicate frequently.
    • Corporate governance is a must to ensure that any gains are not lost   
  • Results
    • Significantly reduced IT costs due to tighter contracts
    • Obtained loyalty of suppliers by implementing a vendor neutral strategy 
    • Decreased risk outsourcing independent contractor analysis 
    • Significantly reduce management/administration fees
    • Improved process-leveraged technology
    • Improved visibility and control
    • Increased number of diversity suppliers and spend 
 “Enterforce allowed us to realize close to $2 Million in savings in the first full year of implementation without disruption to the business or compromising the quality of our contingent workforce.”   
Sr. Director Global HR Business Services