An aerospace technology leader needed help managing its contingent workforce in the US and Canada. Decentralized processes, unchecked spending and a lack of transparency made it difficult to track labor costs and use resources effectively, exposing the organization to operational risks. An expert-led contingent workforce management overhaul was needed to quickly implement best practices, restore control and ensure long-term stability.
The client sought to manage its contingent workforce (e.g., freelancers, consultants, contractors and temporary workers) using a first-generation managed service provider (MSP) program. This required additional support for training, change management and guidance due to the client's lack of prior MSP experience. In addition to setting up the solution for the first time, key challenges to address included:
Sevenstep implemented a centralized, vendor-neutral MSP program based on four key initiatives to boost efficiency, save costs and increase visibility:
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Standardized Processes and Technology Integration: We leveraged our implementation toolkit, which applied best practices to streamline processes for worker identification, requisition approvals, purchase orders, statements of work and onboarding/offboarding – enabling us to meet a swift three-month deadline. This improved consistency and efficiency while reducing errors across regions. We also introduced a client-tailored vendor management system (VMS) to optimize contingent staff and statement of work (SOW) management, improve activity tracking, and provide more accurate data and faster response times.
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Cost Optimization: We cut costs by renegotiating supplier contracts, standardizing rate cards and consolidating supplier lists for volume discounts. Our direct sourcing solution also lowered costs by using the client's brand and network to identify and hire talent at a reduced rate, minimizing a reliance on third-party staffing agencies.
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Enhanced Visibility: We implemented the VMS to improve data visibility and tracking. This allowed Sevenstep's Data Analytics team to conduct detailed analyses and create advanced dashboards with real-time program performance views. Hiring managers could easily track each stage of the process, and the VMS provided real-time data access to multiple users – improving decision-making and oversight.
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Optimized Supplier Performance: We established key performance indicator metrics (KPIs) and service level agreements (SLAs) to improve operations and quickly connect the client with top talent. This led to enhanced supplier quality, improved compliance and consistent service delivery. Additionally, we managed all supplier performance and engagement, including supplier payments, relieving the client of this time-consuming responsibility and allowing them to focus on core business activities. |
Are you interested in transforming your contingent workforce strategy with Sevenstep? Schedule a call with our experts to discuss how our partnership-driven approach can support your goals.
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