Supply chain designed to optimise client's diversity goals

grow

Intentional supply chain design during implementation

Our MSP programme optimised our client's supply chain design and supplier network, exposing a diversity deficit. Collaborating closely, we implemented a strategic process, resulting in a supplier roster that boosted Small Disadvantaged Business (SDB) spend by 25.5% annually. This initiative elevated overall diversity spend to 47%, enhancing operational efficiency.

Addressing the diversity deficit in the supply base

Our client wanted to leverage Pontoon's supplier network for quick and efficient optimisation of their supply base. Before we implemented a Managed Service Provider (MSP) programme, they had been managing their contingent workforce in-house.

As part of the MSP implementation, the client wanted to leverage our vast supplier network of strategic partners for a quick supply chain optimisation. Initially, to avoid business disruption, we migrated all of the existing vendors to the programme. It quickly turned out the supply base lacked a strong diversity component.

Pontoon was tasked with increasing vendor diversity mix to support fulfilling their partners' requirements. 

Creating a custom procurement supplier partnership strategy

Working with client's procurement team, we agreed on the approach for right-sizing the supply base. The ultimate goal was to assemble a roster of high-performing suppliers while increasing its diversity. The customer was especially interested in adding Small Disadvantaged Businesses (SDB), which are companies owned by socially or economically disadvantaged entrepreneurs.

We conducted a formal RFP, inviting 70 partners that included legacy suppliers, Pontoon's diverse and non-diverse partner referrals, as well as local diversity firms recommended by our stakeholders.

27% year-on-year increase in supplier diversity spend

We designed a roster of 38 suppliers, comprised of 14 non-SDB and 24 SDB companies. Our procurement supplier experts suggested grouping suppliers by labour category, tiered as detailed below.

This new strategy ultimately increased the SDB spend by 25,5% in one year, with the overall diversity spend now totalling 47%, which amounts to 27% increase year-on-year.

  • IT, project management, business professional
    • Tier 1 comprises a maximum of 6 preferred suppliers, including 4 SDB partners who receive a 24-48 hour lead way on all requisitions.
    • Tier 2 comprised of a maximum of 3 backup suppliers, a mix of diverse and non-diverse partners.
  • Niche-clinical, and admin, clerical, marketing
    • Tier 1 comprises a maximum of 4 preferred suppliers, including 3 SDB partners who receive a 24-48 hour lead way on all requisitions.
    • Tier 2 comprised of a maximum of 3 backup suppliers, a mix of diverse and non-diverse partners.