How we optimised a supply chain to reach diversity goals

Our customer, a healthcare company, wanted to leverage Pontoon’s supplier network for quick and efficient optimisation of their supply base. Before Pontoon implemented an MSP program, our customer had been managing their contingent workforce in-house. As part of our MSP implementation, our customer wanted to leverage Pontoon’s vast supplier network of strategic partners for a quick supply chain optimisation. Initially, to avoid business disruption, Pontoon’s experts migrated all of the customer’s existing vendors to our program. It quickly turned out the supply base lacked a strong diversity component.

Our customer asked Pontoon to increase their vendor diversity mix to support fulfilling their partners’ requirements.

Pontoon worked with the customer’s procurement team to agree on the approach for right-sizing the supply base. The ultimate goal was to assemble a roster of high-performing suppliers while increasing its diversity. The customer was especially interested in adding Small Disadvantaged Businesses (SDB), which are companies owned by socially or economically disadvantaged entrepreneurs. Pontoon conducted a formal RFP, inviting 70 partners that included our customer’s legacy suppliers, Pontoon’s diverse and non-diverse partner referrals, as well as local diversity firms recommended by customer’s stakeholders.

Pontoon designed a roster of 38 suppliers, comprised of 14 non-SDB and 24 SDB companies. Our procurement supplier experts suggested grouping suppliers by labour category, tiered as detailed below. This new strategy ultimately increased the SDB spend by 14% in it’s first year, 48% in year two and 55% in the third year.

Our customer’s overall diversity spend now totals 79.6%, which amounts to $17.9M in diverse spend.

• IT, project management, business professional
  • Tier 1 comprises a maximum of 6 preferred suppliers, including 4 SDB partners who receive a 24 – 48 hour lead way on all requisitions.
  • Tier 2 comprised of a maximum of 3 backup suppliers, a mix of diverse and non-diverse partners.
• Niche-clinical, and admin, clerical, marketing
  • Tier 1 comprises a maximum of 4 preferred suppliers, including 3 SDB partners who receive a 24 – 48 hour lead way on all requisitions.
  • Tier 2 comprised of a maximum of 3 backup suppliers, a mix of diverse and non-diverse partners.

“Pontoon does a great job strategically aligning its supplier partners for success. Since joining the program as an SDB, we have already seen the positive impact of their diversity initiatives. We are excited about the future and look forward to growing with the program.” – Mike Tomaso, COO, Airetel Staffing, Inc.