Case Study
Illinois Medical Device Manufacturing Company
The Situation
The client’s attempt to implement a Managed Service Provider (MSP) for temp labor failed twice due to a combination of inaccurate spend data and a disorganized approach to vendor management. They initially projected a $40M spend but lacked proper reporting to confirm it. Contracts were scattered, stakeholders lacked visibility, and operating companies had independent processes. The absence of standardized rates and service level agreements further complicated matters. Finally, some operating companies weren’t on board with the MSP model. These issues made successful implementation impossible.
The Solution
Workspend did a deep dive into the client’s contingent workforce with a full assessment. They launched a survey with current suppliers to understand pricing, onboarding, spend data, and risk. Interviews with suppliers and hiring managers across the company provided further insights. Finally, Workspend implemented reporting tools, consolidated supplier contracts under their MSP, and established performance scorecards.
Final Results
Workspend’s assessment revealed a much larger contingent workforce than initially reported. We identified $15M+ in rogue spend on unreported temp labor and headcount. Inconsistent onboarding practices across operating companies led to inefficiencies and higher costs. Additionally, suppliers charged above-market rates and had multiple, non-standardized agreements with different companies. These findings exposed potential misclassification risks. Based on this, Workspend recommended and is implementing an MSP solution to streamline processes, reduce costs, and optimize efficiency across all operating companies.
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