Decentralized Contract Labor Process

The Challenge – Decentralized Contract Labor Process

Our client, a global consumer product manufacturer, required a strategic partner that could provide them vision into a decentralized contract labor pool as well as control of the process. The current process was being managed separately by both the HR and Procurement departments. HR worked directly with some of the suppliers while some managers went directly to Procurement for purchase orders, circumventing HR and the process. This did not allow the client a holistic view into their contract labor workforce program. TPG was engaged to provide a standardized and centralized workforce solution.

The Panther Group Solution

TPG took ownership of the entire contingent labor workforce process from HR and Procurement. TPG implemented an on-site team along with a Managed Service Workforce Solution and a Vendor Management System (VMS).

The Outcome

After successfully implementing our solution and comparing the data the client had provided we discovered that instead of 30 suppliers there were actually 70. Additionally, we uncovered another 160 contractors that were not properly classified by the managers or Procurement, ultimately leading to the discovery of an additional $8 million in contract labor spending.