An Optimised Supply Chain to Navigate Changing Tides of Energy Sector

Background

A SOLID SUPPLY CHAIN STRATEGY TO ENSURE SUCCESS

As the energy sector continues to evolve due to a myriad of external factors, it’s clear that innovative thinking, strong partnerships, and a solid supply chain strategy are essential to come out ahead of the changing tides.

Having recently integrated Pontoon’s MSP program, the customer – an American Fortune 100 energy company – had taken the approach of “more is better” when it came to their supply chain.

This approach had recently begun damaging the customer’s reputation with energy suppliers across the US. By working with Pontoon, they realised an optimised and engaged supply chain would be a superior approach.

Our Approach

VISIBILITY OF CUSTOMER OVERSPENDING THROUGH PONTOON ANALYTICS

Pontoon’s team, with the support of our Pontoon Analytics data, was able to show the customer over-spending on contract talent as well as the low supplier performance seen across the program.

One of the key factors identified through our in-depth analysis was that hiring managers were going outside the MSP program with pre-identified candidates, costing the customer millions of dollars every year.

Many of the suppliers in the customer’s program were also showing lower performance metrics as compared to other Pontoon programs within the energy sector.

After analysing the entire supply chain data from the prior 18 months, the Pontoon team developed a tiering methodology that was implemented across the supply base. This was underpinned with supplier scorecards and additional communication and compliance metrics that were regularly tracked by Pontoon’s MSP team and reported back to both the suppliers and customer – ultimately enabling additional optimisations as the program and supply chain evolved.

Customer Results

AN OPTIMISED SUPPLY CHAIN TO DRIVE FUTURE PROGRAM ENHANCEMENTS

After only one year post-optimisation, the supply chain has been decreased from 235 suppliers to 82. Wallet share and engagement per supplier has increased, and both customer hiring manager and supplier satisfaction scores have drastically improved.

Pontoon’s new supply chain strategy will ensure future enhancements to the program can be quickly and easily adopted by both suppliers and the customer – resulting in meaningful change to the customer’s evolving workforce.

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