Reducing Contingent Labor Costs and Streamlining Processes for a Global Food Retailer
Case Study: Reducing Contingent Labor Costs and Streamlining Processes for a Global Food Retailer
In the highly competitive, customer-centric retail food industry, companies frequently rely on a contingent labor program to complement their permanent workforce. Headquartered in the Netherlands with an international presence, this food retail client is the parent company of some of the most respected grocery chains in the U.S. Learn how Sevenstep is working with this company to drive dramatically improved contingent labor programs while reaching new heights of performance.
Challenges
Roles: Web Developers, Point-of-Sale Analysts, Project Managers and Quality Insurance
Geography: United States
Challenges:
- Incumbent MSP program becoming progressively less effective as the company grew – both organically and by acquisition
- Heavily manual back office processes, including billing management for independent contractors, consultants and staffing agencies
- Client had significant corporate focus on cost savings
- Contractor quality was falling
Approach
Solution Type: Managed Service Provider (MSP) Program
Delivery Model: Centralized, vendor-positive contingent workforce management
Highlighted Strategies:
- Cost Reduction: Renegotiated staffing vendor contracts and consolidated staffing vendors, while implementing a standardized rate card and improving spend visibility and compliance
- Process Standardization and Streamlining: Focused on improving processes around requisition approvals, Purchase Order and Statement of Work processing, and onboarding/off-boarding
- Reduced Administration: Recommended actions to reduce administrative burden on client’s procurement team
- Resource Augmentation: Provided skilled resources as and when needed by the client to effectively meet business demands
Results
- Successfully launched MSP program within 90 days
- Drove a reduction in true contingent labor costs by ~8% year-over-year
- Reduced average time-to-fill by 50% on hard-to-fill IT positions
- Achieved 100% contractor compliance in onboarding and off-boarding
- Achieved MSP Net Promoter Score of 75%
