Providing standardisation of supply chain and reduced costs for American software company

Case Study
  • region: North America
  • industry: TechnologyMedia & Telecommunications

This is an American software company and is part of a large aviation group. They specialise in navigational information, operations planning tools, flight planning products and software.

Their headquarters is in Colorado USA and have 3200 employees across 18 locations in 4 continents.

The Situation

Across Europe, the company had multiple suppliers with limited control over costs or the supply chain. They used several systems to manage the contractor base and the supply chain and had invoices from individual suppliers every month creating a high volume of administration.

Before engaging CXC, the company had little control over contingent workforce spend, supply chain, compliance and processes.

They needed a solution, one that enabled them to lower contingent worker costs, reduce accounts administration and remain an attractive client to work for.

CXC's Solution

In 2018, CXC working in partnership with Monument Consulting in USA, implemented an MSP programme in Poland, Germany and Sweden for all contingent workers. Using Beeline as the VMS tool, CXC onboarded the supply chain to enable central management of suppliers and contingent workforce.

CXC has consistently managed over 330 company contract workers across 3 countries.

Key services we have provided to the company include:

  • Compliance with taxation and local legislation cover.
  • VMS system to manage time and expenses for all contingent workers.
  • Single invoice from CXC per month for each country.
  • Complete management of Supply Chain.
  • Support for rate negotiation process and for contract extension and terminations
  • Benchmarking of market rates for all countries.
  • Dedicated Account structure and contact for all suppliers and contingent workers
  • Added value services, including cross pollination of suppliers across countries

The Results

CXC’s MSP solution has delivered enhanced compliance and governance controls, and significant cost and process efficiencies to the company including:

  • Cost savings in first year expected to be $1m from direct payroll and improved supply chain management.
  • Average cost saving of 4% per pre identified contingent worker, using CXC as preferred payroll partner.
  • Compliant engagement and workforce management resulting in zero co-employment claims
  • Complete library of reports from VMS system introduced to monitor weekly / monthly performance providing transparency of the (in scope) contingent workforce.
  • Streamlined invoicing process with one invoice per country from CXC, demonstrating more detailed and accurate spend data
  • CXC footprint gives ability to quickly expand across Europe and into APAC countries.

 

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