Achieve sustainable cost savings for a global staff augmentation program Case Study

The client

As a world leader in the musculoskeletal healthcare field with over $4 billion dollars in annual revenue, this client provides innovative medical solutions for orthopedic surgeons and clinicians in more than 100 countries.

The challenge

In an effort to drive company-wide efficiencies, the client’s global strategic sourcing team launched a project initiative called the “Innovate & Improve Program” and applied this program to their temporary labor category. The goals were:

• Drive simplification

• Increase productivity

• Generate continuous improvement benefits

• Improve operating efficiency

• Allocate resources to aggressively reinvest in growth drivers By providing innovative solutions that proactively addressed each of these project’s goals, Adecco not only was awarded the business but displaced a long time supplier who was not providing the level of service the client required. Our success was contingent on our commitment to provide measurable progress on each of their goals and to help the client achieve significant savings over the first twelve months of the program, and well into the future.

The strategy and solution

Adecco designed a comprehensive contingent workforce program for eleven client locations across the country that provided end-to-end staffing for manufacturing, research and development (R&D), sales and marketing positions. To meet and exceed the client’s expectations, Adecco:

1. Implemented a Managed Services Provider (MSP) strategy that aggregated the various temporary labor suppliers across all categories (manufacturing, quality, engineering, IT, administration and sales). Adecco built one consistent, simplified contingent staffing

Achieve sustainable cost savings for a global staff augmentation program Case Study

strategy and offered efficiencies that a multi-vendor process could not provide. 2. Established a Project Management Office (PMO) at their headquarters in Indiana. From

day one, our experienced onsite team provided outstanding service, recruiting and onsite support. They proactively managed and assessed the ongoing effectiveness of the company-wide implementation. This team, focused on continuous improvement, managed the temporary labor program so that the client could focus on their core business.

3. Deployed Vendor Management System (VMS) technology [Beeline] for full “req-to-check” visibility that improved operational efficiencies and simplified the requisition process. This technology provided the client valuable tools and tracking methods such as:

Gaining 100% visibility of their staffing spend and supplier performance Defining a requisition approval process Setting tenure limits Preventing/Limiting overtime costs

4. Controlled contingent staffing spend by establishing a single staffing contract and a uniform background check/drug testing process for all suppliers nationwide.

As a result of Adecco’s success managing this client’s contingent staffing resources, we are now positioned to leverage this success globally. Adecco has recommended that the client:

Expand the program to include additional client locations (Germany, Switzerland, Puerto Rico and Canada)

Create one, unified statement of work (SOW) utilizing Adecco’s MSP and VMS tools Utilize continuous improvement measures to improve existing processes

Going forward, this client has transparency into their contingent labor usage. Adecco will continue to refine and improve program best practices to manage expenses. Results/ROI In the first twelve months of the program, Adecco delivered the following considerable achievements:

Established Service Level Agreements (SLAs) Surpassed program cost savings commitment by 14%, yielding a 9.14% overall reduction in

contingent labor costs which saved $1.2 million Achieved a fill rate in excess of 95% for highly specialized roles Decreased time to fill rate over prior supplier in year one Reduced negative turnover to less than 10% in the first year