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Leading Manufacturer Yields $3.6M in Contract Labor Savings

Leading Manufacturer Yields $3.6M in Contract Labor Savings

A leader in consumer packaging and industrial products was looking for greater visibility into its contingent labor spend. The result? Our team implemented our flexible MSP solution that helped the client realize over $3.6 million in total cost savings while driving optimal program performance.
  • The Client

    This publicly-traded leader in consumer packaging and industrial products generates over $5 billion in annual revenue.
  • The Situation

    In what began as a successful technology-only solution with Broadleaf, the client sought to improve visibility into its contingent labor spend through the implementation of a Managed Service Program (MSP).
  • The Solution

    Broadleaf’s dedicated team of resources supported the client’s dynamic recruitment and workforce needs. These employees were heavily involved in supporting the company’s MSP demands and ensuring overall program success.

The Client

This publicly-traded leader in consumer packaging and industrial products generates over $5 billion in annual revenue. Our client has more than 23,000 employees across 300 operations centers in 30+ different countries.

 

The Situation

In what began as a successful technology-only solution with Broadleaf, the client sought to improve visibility into its contingent labor spend through the implementation of a Managed Service Program (MSP). The company looked to our expert team to deploy an MSP solution that would mitigate risk, deliver cost savings, enforce safety protocols, and effectively manage staffing suppliers. In addition, the client planned to leverage our advanced reporting tools and industry best practices to better manage spend at the plant level.

 

The Challenge

With a keen understanding of its key stakeholders and internal processes, Broadleaf’s team got to work in implementing our flexible MSP solution. Obstacles soon arose, as the client began to acquire competitors that would enhance and expand its line of packaging offerings.

  • In acquiring dozens of plants, the client did not mandate that each operating facility assimilate to company-wide standard process requirements.
  • Each plant was permitted to function as an autonomous unit with no formal set of rules or regulations.
  • Broadleaf found that these workplace inconsistencies proved challenging to overcome, as it was difficult for our team to hold each operating facility to the same standards.

 

The Solution

Broadleaf’s dedicated team of resources supported the client’s dynamic recruitment and workforce needs. These employees—including a Director of Client Delivery, Talent Acquisition Advisors, Talent Acquisition Specialists, and Client Operations Support team—were heavily involved in supporting the company’s MSP demands and ensuring overall program success.

Our team developed an understanding of each individual operating plant, then separated each facility into “buckets” based on volume. This method gave our team a method of categorizing each plant in order to schedule reoccurring cadences. For example, Broadleaf planned to engage with key stakeholders at high-volume plants at least once every week, while the regularly scheduled meetings would occur less frequently at locations with lower volume. This strategic communications approach allowed our team to enhance our understanding of each client facility while seeking out areas that could improve internal processes.

 

The Conclusion

Broadleaf gained a comprehensive understanding of the client’s diverse contract labor needs, working to fully integrate itself into the organization. By deploying a variety of creative strategies, our partnership has helped our client realize over $3.6 million in total cost savings. Moreover, our team has helped the company to consolidate billing and reporting, ensure optimal markup rates, and drive more effective overall MSP performance while holding suppliers accountable in complying with contract terms. As a performance-driven MSP provider, we have achieved the following results:

  • Projected year-over-year cost savings of approximately $175,000
  • Surpassed our projection, generating 25% in cost savings
  • Devoted 3% of total spend to diverse suppliers
  • Improved working capital by seven days

Our Broadleaf team projected year-over-year cost savings of approximately $175,000 for the client. We have already surpassed that amount this year, generating an additional 25% in cost savings. Broadleaf helped to improve working capital by seven days thanks to strategic management of extended and prompt payment terms.

As staunch advocates of promoting a diverse workplace, Broadleaf has helped our client in meeting certain diversity supplier requirements through our MSP. We leveraged relationships with WBE, MBE, SBE, LGBT, and veteran-owned suppliers, devoting 3% of total spend to diverse suppliers. Our team is also in the process of exploring relationships with Alaskan Native, Native American, and Disabled-Owned businesses to further our commitment to a diverse candidate slate.

Program Results

  • $3.6M

    total cost savings
  • $175K

    in delivered cost savings
  • 7 day

    improvement in working capital

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