Case Study
North American Mid-Size Pharma Company
The Situation
The pharmaceutical company’s initial MSP partnership faced significant challenges. Limited data visibility, inconsistent compliance and pricing, poor supplier management, and lack of M&A strategy hindered program success.
The MSP’s inherent conflict of interest compromised the program’s effectiveness. Prioritizing its staffing services over other suppliers led to higher costs, delayed hiring, and dissatisfied vendors. Inconsistent quality, limited data, and a lack of strategic decision-making further hampered the program’s overall performance.
The Solution
To address these challenges, Workspend implemented a comprehensive solution including:
- Vendor Management Solution: A new VMS was implemented to capture all necessary data points and integrate with the pharmaceutical companies HRIS/Workday systems.
- Program Transition: All supplier contracts and headcount were transitioned to be managed by the MSP, adhering to agreed-upon contractual markups.
- All Encompassing Solution: Worked with stakeholders to design a solution where 100% of non-permanent labor would be managed under the managed service program.
- Vendor Neutrality: Workspend is not a staffing supplier: participating suppliers compete on merits like speed, quality, and price, allowing the company to choose the best value.
- Supplier Scorecard: A scorecard was established to evaluate supplier performance.
- Feedback Program: Client, supplier, and worker feedback and satisfaction programs were created.
- Single Point of Contact: An allocated single point of contact for MSP program leadership and daily operations.
Benefits of Vendor Neutrality
Fair Competition: Vendor neutrality ensures a level playing field for all suppliers, promoting fair competition. This leads to better quality and cost-effective solutions as suppliers strive to outperform each other.
Increased Supplier Participation
A neutral MSP attracts a diverse range of suppliers, increasing the pool and quality of available talent.
Cost Savings
Reduces unnecessary markups and promotes competitive pricing.
Improved Compliance
Consistent adherence to compliance standards across all suppliers reduces legal and regulatory risk.
Enhanced Quality
Improved service quality and higher satisfaction levels among clients and workers.
Transparency
Clear supplier performance and pricing boosts strategic decision-making and planning.
Data Integrity
Improves the accuracy of data and reporting, leading to more reliable analytics and insights.
Supplier Relationships
Fair treatment of suppliers strengthens relationships and collaboration, contributing to a more effective and responsive program.
Final Results
100% Program Adoption: All in-scope labor activity occurs within the managed program, leading to cost savings, increased compliance and risk mitigation, and complete visibility.
Hiring Manager Satisfaction thanks to an efficiently managed and well supported MSP program
Reduced Markup: The average Tier One Supplier Markup was reduced from 70-99% to 41-43% across all supported labor categories.
Markup Savings: $494,786 in markup savings in 2023.
MSP Fee Rebate implementation of 0.25% resulted in additional cost savings.
Diverse Supplier Spend was increased from 0% to 30% of total spend.
SLA-Driven Governance: Implemented an SLA-driven governance program.
Program SOP Development captures all aspects of program governance and methods of management.
Tail Spend Reduced by 80%.
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