Major Healthcare Company Exceeds Cost Savings Goals with Master Vendor Program

CHALLENGE

A global healthcare and pharmaceutical company was finding it difficult to monitor its spending on technical and clerical contract labor. The company's use of more than 10 staffing suppliers had resulted in inconsistent bill rates, processes, quality of candidates and quality of service.

The procurement and human resources departments were challenged with some aggressive cost savings goals for its contract labor spending. The two major goals for the company were:

  1. to achieve significant annual cost savings in contract labor spend
  2. to achieve compliance and consistency among staffing suppliers

SOLUTION

The company initiated an extensive primary vendor bid process among its top staffing suppliers and Kelly® was ultimately selected as the primary vendor. This decision was based on several factors including: 1.) a strong 10-year relationship between the healthcare company and Kelly, 2.) the fact that all Kelly branches are company-owned rather than franchised, and 3.) Kelly's ability to meet all of the company's contract staffing needs including engineering, scientific, information technology and clerical.

Kelly immediately implemented quality processes that relieved issues such as inconsistent staffing and rates across the company's business lines. Kelly also implemented a punchout technology solution that enabled the company to leverage its existing eProcurement investment for its staffing services spend.

In addition, continuous process improvements are made to provide ongoing cost savings to the company.

RESULTS

With Kelly's master vendor program, the company exceeded its cost savings goals through process improvements in the following areas:

  • Mark-up reduction savings as a result of negotiated bill rates for all suppliers
  • Invoice savings due to consolidated billing and electronic submission of invoices, as opposed to paper invoices
  • Reduced non-compliant spend as a result of transitioning employees of non-approved suppliers to Kelly
  • Process efficiencies through the implementation of a Kelly punchout technology solution that allows company employees to create and configure their staffing orders online.