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The energy sector continues to evolve due to a myriad of external factors.
In order to come out ahead of the changing tides, innovative thinking, strong partnerships, and a solid supply chain strategy are essential.
Having recently integrated Pontoon’s MSP program, our customer – an American Fortune 100 energy company – had taken the approach of “more is better” when it came to their supply chain.
Our customer’s approach had recently begun damaging their reputation with energy suppliers across the US.
They experienced excessive spend and poor supplier performance.
Once Pontoon stepped in, they realised an optimised and engaged supply chain would be a superior approach.
With the support of our Pontoon Analytics data, our team was able to discover the customer over-spending on contract talent and low supplier performance compared to other Pontoon programs within the energy sector.
Data also showed hiring managers going outside of the MSP with pre-identified candidates, costing the customer millions of dollars every year.
Post-analysis, our teams developed a tiering methodology to implement 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.
Metrics were then reported back to both the suppliers and customer – ultimately enabling additional optimisations as the program and supply chain evolved.
Only one year post-optimisation, the supply chain has been decreased from 235 suppliers to 82.
Wallet share and engagement per supplier has increased.
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.