success story
Top-ranking utility company saves $387K in six months with Beeline VMS
Nearly $220,000 in savings were negotiated and another $167,000 in savings were achieved due to prompt pay discounts in the first six months after implementing Beeline VMS.
- Industry
- Energy
- Client Since
- 2011
- Category
- Contingent Staffing
The challenge
Achieving supplier diversity is a critical component of the company’s supply chain strategy. The client needed to expand the diversity of its extended workforce, increase compliance with internal policies and procedures, and ensure regulatory compliance—all whilst achieving both hard and soft cost savings in its contingent staffing program.
The solution
Working on an aggressive schedule, we implemented our Vendor Management System (VMS) to accommodate seven labor categories and transitioned an initial payroll workforce of more than 150 from a legacy Managed Service Provider (MSP) to a new MSP with zero attrition. At the same time, we helped our client implement an improved user support model, establish program analytics with supplier metrics and supplier audits (including a supplier infraction program), and created a Standard Operating Procedures manual for the program to reduce co-employment risks.
The system was designed to manage and support a tiered volume discount program with further cost savings achievable through built-in prompt pay discounts.
The result
In the first six months of the VMS’ operation, our client increased its diversity spend by 762 percent through the introduction of new suppliers. At the same time, the client negotiated nearly $220,000 in savings and achieved a further $167,000 in savings due to prompt pay discounts.
Since then, the client has renegotiated its overtime multiplier for additional savings and developed a new rate card for all approved vendors, with potential annual savings estimated at $285,000.
Perhaps even more important, the increased visibility the system provides has helped to mitigate compliance risks—a very important consideration in their heavily regulated industry—and, through improved tracking and automated onboarding/offboarding, helped to ensure that they always know precisely who has access to its facilities, systems, and data.