How strategic workforce planning assessment charted a $15M cost-saving roadmap

How strategic workforce planning assessment charted a $15M cost-saving roadmap

Summary

MSP programme transformation

Our client, a global IT services provider, wanted to accelerate growth and revenue generation in their contingent workforce programme. Pontoon Instinct’s Operational Excellence (OPEX) and MSP experts conducted an in-depth analysis over eight weeks, examining the programme’s data, current processes, procedures, and operational standards. This evaluation revealed a strategic roadmap for the client to achieve up to $15M in cost savings and cut the time needed to fill positions by 12 business days.

The challenge

Overhaul programme operations and improve best practices

The client wanted to accelerate revenue and strategic planning by optimising hiring, fulfilment, retention, and cancellation rates and refining data architecture and compliance. Developing a strategic roadmap would guide our client in smart investing, choosing the right vendors, setting up systems, and wisely allocating resources.

Pontoon needed to quickly identify pain points while establishing a foundation for programme adoption, continuous improvement and growth within the client’s MSP. Our solution had to tackle bottlenecks and suggest best practices to improve the programme’s overall efficiency. The goal was to prioritise supply chain optimisation with an additional focus on streamlining the client experience.

How we helped

Operational excellence through strategic workforce planning

We started by assessing the overall health of the MSP programme using our proprietary Explore360 methodology. This assessment gave the client a holistic understanding of current MSP operations, creating a detailed analysis of critical dimensions.

Operational Excellence specialists and Pontoon’s MSP programme experts then created a strategic roadmap to guide the client in future talent investments, supplier selection, database configurations, and resource allocation.

Using VMS and CRM systems analysis, our data engineers identified outliers from foundational practices and investigated labour market trends. This provided valuable insights and a detailed explanation of how our client’s performance stacked against their competition.

We also determined how an ideal programme would differ from the client’s current state, especially considering the changing market conditions. Our team detected and quantified client MSP operational performance gaps and provided recommendations on process changes with expected positive results.

In line with Pontoon’s commitment to deliver process-driven solutions and precise, data-backed results, we proposed over 15 initiatives to enhance MSP operations with implementation over 18 months.

Apart from streamlining the requisition process with automation, we established clear guidelines for the initial identification, vetting, and acceptance stages, ensuring a seamless and efficient workflow. A significant innovation was the introduction of a subcontracting metric KPI, achieving a 20-30% benchmark in supplier evaluations. This was a key component of our strategy to streamline the supply chain. We focused on a select group of 15-45 trusted suppliers and limited engagements to a single sub-vendor per project. This strategy assured quality and reliability. It enhanced our client’s negotiating power, potentially doubling rebates and enabling significant cost savings.

Furthermore, we advised our client to thoroughly revise job titles, categories, labour classifications, and market rate card models to reflect current market conditions accurately. We instructed them to tailor distribution strategies to align with specific job families, categorising suppliers for optimal efficiency. Through our advisory efforts, we elevated processes and established new standards for Operational Excellence for the client while maintaining a professional and informative tone that engaged our diverse audience.

 

Impact

Predictable operational and cost improvements

Through a proprietary Explore360 assessment, we identified key areas where our solutions can directly address our client’s challenges and drive meaningful improvements. Expected client benefits include:

  • Enhanced speed to revenue: Ensuring that the client achieves faster investment returns.
  • Increased hiring manager satisfaction: Contributing to improved MSP programme efficiency through stronger relationships between the MSP and the client.
  • Higher quality candidates: Enabling better fits for the client’s organisation.
  • Streamlined supply chain operations: Resulting in smoother processes and better relationships with stakeholders and suppliers.

The client received an MSP roadmap that has the potential to translate into the following quantifiable results:

  • Reduced cancellation rates by up to 25%
  • Shortened time to fill by up to 12 days
  • Realised >$15M in cost savings

 

“Overall, I will give this effort an A+. You came in as a consultant and advisor to give us a true picture. I’m thoroughly impressed with Pontoon.”

– Senior Vice President, COO, Human Resources

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