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MSP case study: engineering company improves supply chain management.

global engineering company turns to a managed service provider to optimize flexible talent

the success

Randstad Sourceright MSP case study engineeringexceeding cost expectations
The managed services program (MSP) has led to 110% of the initial goal of cost neutrality. Randstad Sourceright works closely with the client in the U.K. to meet its program savings goal and possibly more through additional improvements. 

increasing program engagement
Spend under management (SUM) is continually growing in line with the company’s strategy. The average weekly SUM grew 38% in just two months. The trend continues to demonstrate growing program engagement.

improved supply chain management
After undertaking a comprehensive assessment of supplier performance, the client has actionable analytical data to further improve supplier performance, including additional rationalization to manage under-performers.

program expansion
After initially implementing the MSP program for five business units, we are now working closely with the client to further roll out the program to additional businesses. The goal is to deliver greater contingent workforce visibility while driving cost efficiencies and process improvements.

program enhancements
We have implemented numerous process enhancements, including a new help desk system that significantly improves visibility of queries, a speedier way to create requisitions, a shorter time-to-hire and a more user-friendly experience for hiring managers.

the business needs

The U.K. business unit of a global, diversified engineering company looked to implement the Fieldglass vendor management system (VMS) to bring about greater process efficiencies and transparency for its contingent workforce. After considering the strategic value that an MSP provider could add to its technology implementation, the company decided to outsource management of its contingent workforce.

The company wanted to leverage MSP expertise to transform its contingent workforce management approach, including integration with Fieldglass across five different businesses in the United Kingdom. Process standardization and streamlined data collection were critical for the organization to gain transparency and consistency.

In addition, the technology would provide automation and convenience to hiring managers across various U.K. sites and be integrated with the company’s ERP system.


the situation

  • an extensive overhaul.
    The rollout of the VMS and the implementation of best practices under the MSP required close cooperation among the client, Randstad Sourceright and Fieldglass. Putting the VMS into service was especially challenging because much of the existing workflow was manually administered and managed. As a result, data integration couldn’t be easily streamlined. The employer had clear mandates for the type of business intelligence it expected from the program, so all parties needed to ensure data flowing into the system was complete.
  • a transitional period.
    In the midst of the rollout, the company was implementing its global reorganization. This transitional period added to the complexity of the MSP implementation as the company was undergoing significant change. To mitigate the complexity, each of the partners worked toward clarity of mission and assumed ownership for their critical activities.
  • cost neutrality and future path.
    Even as Randstad Sourceright and the client focused on the initial implementation, they also set clear goals on how to drive the program forward to achieve future gains in cost savings and expand its reach to include additional businesses.

the solution

  • Randstad Sourceright MSP case study continuous improvementtrue cost savings.
    We worked with the company to develop a solution that would produce enough cost savings to offset the MSP and VMS fees. Through improved supplier fee management and shifting hiring to the most efficient vendors, the program has been able to produce results that exceed the combined MSP and VMS fees. Randstad Sourceright has identified additional cost-saving opportunities that would further yield economic gains for the client.
  • greater agility.
    The client is gaining greater workforce agility as a result of faster time to fill. Since implementation, overall time to hire has dropped each successive month, with a total reduction of 10 days in just four months.
  • workforce visibility.
    Overseeing the implementation of the VMS and process realignment efforts, we have been able to provide analytical insights such as supplier performance, rate card metrics and worker tenure. As new tools are introduced and rollout takes place within other business units, the client will have even greater visibility of its contingent workforce spend and practices.
  • continuous improvements.
    Following rollout, the partners are identifying additional opportunities for enhancements and cost savings. By simplifying contingent workforce management through greater automation and process optimization, Randstad Sourceright will be able to help the employer drive greater value for program and hiring managers.

learn more about the benefits of MSP

How can a managed services program (MSP) transform contingent workforce management at your organization? Request your copy of our MSP Playbook for an inside look at the different models, how MSPs provide greater visibility and control, and the potential savings an MSP can deliver. 

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