The Challenge – Contract Labor Billing Issues
Our client, a product manufacturer, had an internal staff of six employees solely dedicated to processing the billing for their contract labor program. They had over 75 existing suppliers and processed the billing for all of their suppliers on a weekly basis. Their current payment cycle for their suppliers was in excess of 75-90 days. Suppliers had multiple client billing contacts, extensive billing issues and delays in receiving their payments from our client on time.
The Panther Group Solution
Panther analyzed our client’s entire billing and payment process. We engaged a Managed Service Provider solution and also provided a VMS solution to our client. The MSP and VMS solutions provided our client with a standardized billing process, a single point-of-contact and a consolidated weekly invoice for all of the suppliers.
Our client was able to reallocate vital internal resources used and dedicated to the old billing and payment process. This provided our client a savings in excess of over $100K by consolidating the billing process. The MSP program was able to reduce vendor payments from 75-90 days to consistently paying suppliers within 30-45 days. It also provided our client enhanced reporting capabilities on supplier billing and supplier spend. It also provided suppliers and our client a single point-of-contact.