How we optimised a client’s supply chain lowering labour costs through market research

How we optimised a client’s supply chain lowering labour costs through market research


A case of resource cost optimisation

Our APAC client, a global technology and transportation company, aimed to reduce their labour costs by gaining a deeper understanding of the regional talent market and discovering opportunities to leverage workers with similar skills from different locations at a lower cost.

Pontoon conducted an in-depth analysis of bill rates in specific market areas to identify lower-cost resources with comparable skills. The results? Our client successfully hired two new contingent workers from Malaysia to replace high-cost workers from Singapore, resulting in monthly savings of over $13K.

The challenge

Identifying resources in low-cost markets

To reduce the costs of hiring contingent labour for our client, we needed to identify equally skilled resources in more cost-effective markets. We then collaborated with local supplier partners to recruit replacement talent from these pre-identified locations.

How we helped

Local market and supplier partner research

To meet our client’s hiring needs effectively, we began by working closely with them to understand the specific roles and contractor job categories they sought. Our highly skilled Pontoon MSP Team then engaged with key client stakeholders to discuss job specifications and ensure a clear understanding of essential skill requirements.

With this information, we conducted thorough market research in Singapore, a high-cost location, and in lower-cost areas such as Malaysia and Indonesia. The goal was to compare contingent bill rates for workers with the same skill sets across these locations.

Once we understood local market bill rates, our focus shifted to developing relationships with suppliers in the lower-cost areas of Malaysia and Indonesia, ensuring that the client’s needs were met while also adhering to compliance standards. Simultaneously, we provided hiring managers with detailed briefs to ensure alignment.

We worked with our supplier partners in the target low-cost areas to implement a rigorous screening process and identify the most talented candidates. Shortlisted individuals were required to submit their work for review, allowing us to assess their capabilities. Only those who demonstrated the necessary skills were then shortlisted for interviews with hiring managers. If deemed suitable, they received an offer.


Substantial client cost savings

By leveraging our cost research and supplier optimisation activities, we effectively lowered the client’s contingent labour expenses while maintaining the necessary skills for their workforce. Due to our efforts, two new contingent workers were hired, saving our client a combined $13,000 dollars per month in bill rate expenses.

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