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Optimizing Your MSP Program While Growing Diverse Spend 


A regional energy provider sought to optimize its MSP program while at the same time growing its spend with local, diverse suppliers. In particular, the decade-old program was experiencing minimal internal adoption, low quality, and compliance challenges, among other issues. 

The Challenge

  1. Strategy: The client had no agreed-upon strategy for managing suppliers, job reqs, or diversity.  Program and supplier management was reactive rather than proactive. 
  2. Scale: Program operations were limited to IT, Professional, and Administrative spend, as well as former employees.  Significant volumes of spend were being managed outside the program. 
  3. Scope: Only one business unit had agreed to join the program, leaving six business units outside the program.  There was no strategic consistency in the management of temporary labor spend. 
  4. Sourcing:  Only 50% of requirements were being competitively sourced (among multiple suppliers).  Sole sourcing was driving higher prices combined with a lack of choice for hiring managers.   


        After taking over from a 10-year incumbent MSP, Pinnacle restructured the program from the ground up, driving change and implementing numerous strategic objectives. 

        1. Strategy.  We developed a clear, actionable strategic roadmap for supplier and diversity management. 
        2. Sourcing.  We implemented new, more efficient, more competitive sourcing strategies to drive quality, speed, cost effectiveness, and diverse supplier effectiveness 
        3. Dashboards.  We developed and implemented program dashboards to show performance results to all stakeholders and suppliers in real time 
        4. Scale/Scope.  We drove internal program adoption via target program outreach to specific business units and hiring managers. 


              These initiatives were truly transformative, helping the client to implement new talent strategies, expand program adoption, improve efficiency, and grow their local, diverse spend. 

              1. BU Expansion: From one to seven BUs served in first 12 months. 
              2. Supplier Diversity: Achieved 100% diverse supplier inclusion (i.e., 100% of job reqs), with 75% of all new contractor starts attributable to diverse suppliers 
              3. Savings:  95% of new starts made at or below the bill rate card 
              4. Competition: 95% of new job requisitions competitively sourced 
              5. Optimization:  90% of new starts made by the ten highest performing suppliers. 
              6. Time-to-Fill:  Time-to-fill reduced by 3+ days.

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