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Sourcing of Temporary Services Saves 30% in 30 days

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		·  Sourcing Support
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		·  Procurement and Purchasing
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		·  Reduce Costs and Save Money ·  Quantify Your Costs ·  Benchmark Your Results

Overview:    

This global travel, financial and network services provider successfully leveraged volume and e-sourcing strategies to obtain significant discounts with the providers of temporary staffing services and completed contract negotiations in 30 days, resulting in savings of more than 30 percent of the compressible spend.

Client:

This company serves individuals and corporations with charge and credit cards, travelers’ checks and other stored value products, as well as financial planning, brokerage services, mutual funds, insurance and other investment products.

Challenge:

Faced with the challenge of sourcing several hundred million dollars’ worth of spend across multiple categories using its newly acquired Ariba sourcing module, this client engaged Expense Management Solutions to provide commodity-specific expertise in sourcing temporary services for North America and guidance on how to best utilize the sourcing tool in the process.  The challenge was to use the auction tool effectively for a complex service where few of the providers had used comparable technology and where minimal data on current spend patterns existed against which to compare the results.  Finally, given the magnitude of deals that needed to be completed, the entire sourcing initiative needed to be completed in fewer than 30 days.

Solution:

• Develop the bid structure, restructure the RFxs, identify the critical decision points and develop a sophisticated pricing model that will enable bidders to respond cleanly and rapidly but still provide sufficient detail by region. 
• Develop a comprehensive baseline of total current costs across the regions in the North American portfolio.  
• Develop a tool to provide real-time assessments of the multilayered markups and discounts for use during the auction. 
• Assess total savings generated and compare the impact regionally, by provider and on the basis of a consolidated or multipart award as bids are submitted. 

Results:

•  Developed strategic and tactical recommendations to complete contract negotiations with the top providers.
• Achieved savings of more than 30 percent of the compressible spend. 
• Enabled client to leverage the total volume of more than $50 million in temporary staffing and obtain significant discounts from providers.