An Optimised Supply Chain to Navigate Changing Tides of Energy Sector

Background

A SOLID SUPPLY CHAIN STRATEGY TO ENSURE SUCCESS

As the energy sector continuously evolves due to a facet of external factors it’s clear that innovative thinking, strong partnerships and a solid supply chain strategy will ensure which companies come out ahead of the changing tides.

With recent integrations to Pontoon’s MSP program, the client – 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 been damaging the reputation of the client with energy suppliers across the US and by working with Pontoon they realised an optimised and engaged supply chain would be the right approach.

Our Approach

VISIBILITY OF CLIENT OVERSPENDING THROUGH PONTOON ANALYTICS

Pontoon’s team, with the support of our Pontoon Analytics data, was able to show the client 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 showed hiring managers going outside the MSP program with pre-identified candidates which ultimately was costing the client millions of dollars every year.

Many of the suppliers in the client’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 18 months prior 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 client – ultimately making additional optimisations as the program and supply chain evolved.

Client Results

AN OPTIMIZED SUPPLY CHAIN TO DRIVE FUTURE PROGRAM ENHANCEMENTS

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

The solid supply chain strategy implemented by Pontoon will now ensure future enhancements to the program can be quickly and easily adopted by both suppliers and the client – making impactful change to the client’s evolving workforce.