Contingent Labor

///Contingent Labor
Contingent Labor2019-08-11T04:15:12+00:00

Project Description

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Background

Client is one of the largest independent power producers in the United States.  They generate and sell electricity, capacity and related products from a fleet of power plants that uses diverse fuel sources: carbon-free nuclear, clean and flexibly dispatched natural gas, efficient coal that is well-positioned to meet current and pending environmental regulations.

Client Expectations

  • Aggregate spend on contingent labor across the fleet and reduce the cost of labor by 10%

  • Manage maverick spend and reduce the supply base by 75% to 80%

  • Standardize agreement Terms and Conditions and assess current operating practices to unmask inefficiencies

  • Standardize, centralize, and automate the requisitioning process across 22 physical locations it eight states

  • Move retirees off of payroll and on to a 3rd party provider

Project Planning 98%
Graphic Design 92%
Branding 96%
Multimedia 98%

Project Scope

3,500
Employees, Over 16,000 Megawatts of Generation, 22 Power plant sites.

Process


  • A competitive sourcing event was conducted with the intent of qualifying a Manager Service Provider (MSP) and a handful of sub-vendors
    Bidders could elect to bid as the MSP if their offer included a Vendor Management System (VMS). Otherwise they were to bid knowing they would become a sub-vendor if awarded

  • Down selection resulted in a prime vendor award as the MSP along with four sub-vendors that were are incumbent suppliers.

Results

  • The selected MSP did implement a VMS in six weeks that; standardized the requisitioning process, automated time keeping and approval, and provided near “live time” reporting that was previously unavailable.

  • Labor savings of $6M were obtained in the first year of operation

  • Live time reporting resulted in a reduction of force by four FTEs in Finance and two in Supply Chain

     

Learn More

Thought Leaders

Sower & Associates has experience assisting clients in businesses as diverse as: oil & gas, retail, food service, injection molding, industrial coatings, plywood manufacturing, hospitals, county government, package delivery, insurance, industrial machinery, and universities. These case studies demonstrate how we adapt our unique blend of skill sets to so many different industries.

Wide Range of Services

Our consulting services are wide reaching and include: cost management model creation, cost model training, strategic sourcing project execution and training, logistical design, statistical process control training and implementation, training in approaches to problem solving, training and assistance in continuous quality improvement and total quality management programs, evaluation of customer satisfaction, innovation management, change management, and curriculum design.