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We have an impressive track record for raising R.O.T.I.
Guidant Group has
developed hands-on, real world experience in some of the most
complex and regulated companies in the world. Here are just a
few stories representing our unique comprehensive, integrated
methodology in contingent workforce planning and our results.
Click within the image
to be taken to case studies:
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Cost Containment Case Study
Standardizing Suppliers for Cost
Savings
Client
New England’s largest utility system,
serving more than two million electric and natural gas clients
in Connecticut, western Massachusetts and New Hampshire.
Business Issue
Prior to Guidant Group’s arrival,
managers were on their own to contact staffing agencies for
contingent labor help. There was no organized, structured
procedure for maintaining the contingent labor workforce and
staffing agencies were charging different mark-ups, often for
the same type of work being done in the same department.
Business Solution
Guidant Group entered into an MSP
contract with this client in 2003. The purpose was to streamline
the management of contractors on assignment at our client while
reducing costs and spending. This program includes the
recruiting, requisitioning, invoicing and reporting processes.
Results
Within the first seven months, Guidant
Group obtained a Net Savings of $221,839 for this client.
Savings can be attributed to:
- Guidant Group negotiating better mark-up rates with the
vendors in the program; and
- Ensuring that new contractors were brought in at rates
in line with the market (our client was historically
overpaying)
Guidant Group provided an estimated
soft savings of $380,000 per year, primarily derived from the
reduced number of invoices and invoice errors to A/P. Prior to
Guidant Group’s arrival, this client was processing up to 200
separate invoices to staffing agencies. This savings includes
the hours saved by each user department that now needs only to
approve time electronically (this was formerly a paper chase of
faxed timesheets at the last minute).
On the initial satisfaction survey, 80
percent of the managers indicated that the program exceeded
their expectations. Managers enjoy the benefits of our web-based
tool for initiating requests for new contractors and for
electronic timekeeping. They also appreciate the time saved from
not having to receive sales calls from staffing suppliers about
new opportunities for business.
Guidant Group was also able to utilize
one already-contracted staffing agency for payrolling workers at
a lower mark-up. Estimated payrolling cost savings from this
transition is approximately $431,000 annually.
Ongoing Support
Today, this client continues to save
$50,000 to $80,000 per month by maintaining a fixed mark-up
compared to the current varied mark-ups charged by the staffing
agencies. As a strategic partner, Guidant Group continuously
monitors market rates and fair business practices to ensure that
our client is getting the best rates and improving process
efficiencies throughout our program.
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Risk Mitigation
Increasing Productivity Through
Competitive Pay
Client
One of
the world's largest mail-stream solutions companies, providing
the world's most comprehensive suite of mail-stream solutions to
help companies manage their flow of mail, documents and
packages, from creation, production and distribution, to
end-to-end mail-stream management. The company offered a fully
integrated suite of equipment, services and software solutions,
including high-speed sorters, global pre-sort services, postage
financing, and mail finishing technology, to help companies
automate, track and manage inbound and outbound mail and parcel
shipping.
Business Issue
One of our client’s
manufacturing facilities was experiencing high temporary worker
turnover and slow fill rates on new requests. The demand on the
current staff became overwhelming, which increased the turnover
even more. Also, the lack of a full staff decreased the
production rate for the client and they were running behind in
quotas. The staff was getting burned out, the client was paying
high OT rates, people were leaving the company, and our client
was not meeting business demands or their revenue marks.
Business Solution
We needed to
understand what was causing the high turnover rate and
time-to-fill ratios. We met with our client’s Human Resources
generalist for help in understanding the issue; we consulted the
Guidant Group Compensation Database to research rates and demand
in this particular geographic region, and we met with staffing
partners in that marketplace for their feedback.
We were able to
determine that the pay rate for the particular skill set that
our client required was way below industry standards in that
marketplace. The low pay rates created a sub-standard workforce,
poor work ethics and increased workplace incidents.
The solution was
clear: rates needed to increase and in presenting the evidence
to support this, our client understood the business necessity of
increasing those rates.
Benefits
By increasing the pay rate, the client has
decreased the turnover ratio and now requires fewer workers
because the current workers have a higher rate of production.
Candidates are now better qualified and have a better work ethic
than the workers under the previously low pay rate. The client
saved time and money by increasing the pay rate -- less
turnover, less training time, decreased overtime, quicker fill
ratios and higher quality work produced.
Ongoing Support
To ensure that our
client doesn’t run into a situation of high turnover that
affects their bottom line revenue, we continue to monitor rates,
worker quality, and turnover ratios.
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Sourcing Strategy & Supply Management
Focusing on Contract & Compliance
Management
Client
A Fortune 250 energy
company with more than 21,000 megawatts of generation capacity
and $10 billion in annual revenues. The company includes two
major utilities that serve more than 3.1 million clients.
Business
Issues
•
Contract Management
& Administration -
The client had a centralized process for engaging suppliers.
However, due to high volume, contracts had expired, language
didn’t cover the work being performed, there was no consistency
with bill rates, and no one was auditing the suppliers to ensure
compliance with the original contract.
•
Compliance Management -
The client had no formal method for
auditing suppliers to ensure compliance with the stated content
of each contract, including proper billing and up-to-date
insurance certificates.
Business Solutions
•
Contract Management & Administration -
Guidant Group now handles the administration and management of
all supplier contracts. Through quarterly audits, we ensure that
the supplier is acting in accordance with the contract terms.
•
Compliance Management
-
We instituted a quarterly supplier audit that includes not only
security clearance information for each worker, but also the
supplier’s internal documentation such as proof of eligibility
to work in the U.S. (I-9), payroll records to ensure that proper
pay is being given and state and federal taxes are being paid,
and updated certificate of insurance. Our client team ensures
that all of these contract items are being met by each supplier
firm.
Benefits
•
Contract Management
& Administration
-
With Guidant Group
administering and maintaining all supplier contracts,
substantial workload is taken off the client.
•
Compliance Management -
Because we launched the company’s first
formal method for auditing suppliers on a quarterly basis, the
client’s risk is minimized. We are also able to reduce the risk
of workers being misclassified and insurance certificates
expiring and that taxes are paid to the government.
Ongoing Support
Quarterly audits are consistent and
ensure peace of mind to the client, reduce that footprint of
potential risk, and give credence to our best practices.
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Business Intelligence
Gaining Control Through a
Centralized Process
Client
A publicly held Midwest utility
looking to improve and centralize its contingent labor
management.
Business Issue
Prior to Guidant Group’s arrival, this
client utilized an online Vendor Management System application,
combined with internal resources to administer the program for
the purpose of tracking all contingent labor activity.
Business Solution
While the old VMS technology captured
data that could be used for management analytics, program
administration and application were not consistent. Different
client personnel were involved at each business division to
administer the application and processes. A lack of consistency
led to erratic use of the system. Thus, the data that was in the
system did not paint an accurate picture of true spend or
headcount activity. Our goal was to ensure that reporting was
accurate, reliable and useful.
Business Solution
During the implementation process,
Guidant Group worked to establish internal contingent labor
policies and processes which would be exclusively managed by the
Guidant Group on-site account team. This centralization,
combined with consistent support and enforcement on the part of
client, has led to the consistent usage of the program and the
technologies. Furthermore, as staffing partner agreements were
established, language was included mandating that all time and
expense reporting must go through the Guidant Group technologies
for client approval.
Benefits
The key differences in Guidant Group’s
methodology was the true centralization of the process and the
enforcement of standard procedures. With an expectation
established that invoices submitted outside of these standard
processes would not be approved by the client for payment,
suppliers as well as internal users were motivated to use the
technology consistently. The result is timely, complete, and
accurate management reporting across areas such as spend,
tenure, headcount, accruals, diversity, and supplier
performance.
Ongoing Support
As the Guidant Group program was rolling out
in 2005, reporting needs increased. Guidant Group has supported
reporting needs addressing spend at the cost center level,
monthly accruals forecasting, savings, and turnover. We work
with our client to create the reports that they require in order
to give them the business insight that they need.
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