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CXC Global

Driving efficiency, supplier management, and significant cost reductions for global renewable energy company

Energy & Resources
CXC Global3 min read
CXC GlobalOctober 16, 2024
CXC Global

Summary

Challenge

CXC has delivered significant cost savings for this renewable energy client, with our direct sourcing approach compared to the standard agency rates.

Solutions

Six months after successfully implementing our contractor management solution, CXC proposed expanding our services to include direct sourcing and niche skillset suppliers, creating a hybrid MSP solution for the client.

Results

CXC’s MSP centralised recruitment, streamlined supplier management, and standardised recruitment margins, providing a single point of contact and access to a pre-established supplier panel, minimising the client’s procurement dependency.

Our client is a leading global energy company focused on driving the energy transition. It provides advanced technologies and services in renewable energy, power generation, and grid solutions to help accelerate the shift towards a cleaner, more sustainable future.

Industry

Renewable Energy

Company Size

75,000+ employees

Location

United States

Founding Year

Challenge

In 2022, CXC successfully implemented a contractor management solution for this renewable energy company, overseeing the onboarding, management, and payment of 40+ contractors across New South Wales, Queensland, Victoria, and Western Australia.

Over six months, we gained a deep understanding of this client’s contractor and supplier challenges, including the need for:

  • A single vendor to manage all contingent workers and agency suppliers.
  • Greater access to diverse talent through additional sourcing channels.
  • Reduced time and administrative burden in supplier and contract management.
  • The ability to maintain existing supplier relationships without contractual complexities.
  • Enhanced cost control through strategies like supplier margin reduction, candidate rate standardisation, direct sourcing, and expense management.
  • Overtime management
  • Consistency in supplier margins, which were often higher than the agreed rates.
  • Minimisation of consultancy usage, a significant portion of contingent spend.

By late 2022, CXC proposed a hybrid MSP solution, incorporating direct sourcing and specialised suppliers for niche skill sets.

Solution

CXC’s unique MSP model for this renewable energy company is vendor-neutral, meaning we are not affiliated with staffing suppliers, allowing us to engage contingent talent without bias. Our key differentiator is our embedded direct sourcing solution, which enables us to partner with the business to forecast future roles and build talent pools, reducing hiring timelines when requisitions are approved.

CXC’s MSP solution for this client includes:

  • Dedicated renewables specialist account management and MSP resources: Single point of contact for all contingent onboarding needs, covering the entire procure-to-pay process.
  • Supply chain management: Managing the client’s recruitment supply chain to enhance efficiency, manage performance and centralised margin calculation, compliance and payments.
  • Cost savings plan Implementing savings strategies across the workforce and recruitment supply chain, delivering annual savings of 8-15%.
  • Direct sourcing Leveraging LiveHire to build talent pools for faster access to high-quality candidates.
  • Global mobility: Facilitating access to niche skills globally, including visa support for overseas workers in Australia.
  • Technology and automation: Optimising recruitment technology with support from our tech and professional services team.
  • Data & insights: Delivering comprehensive reporting, analysis, and benchmarking to provide visibility into the contingent workforce program and identify opportunities for improvement.
  • Travel management: Provision of travel management services for workers, including transportation and accommodation.
  • Training coordination: Specialist training requirements for renewable energy industry.
  • Expense policy: Introduced expense policy and parameters around per diems

Combined with our existing contractor management outsourcing solution, CXC manages all contingent workers, regardless of source. This allows this client’s recruitment team to quickly add or change suppliers as needed, independent of a recruiter’s capacity to service the account.

Results

CXC’s MSP has streamlined this client’s recruitment process by providing centralised management and a single point of contact for role briefing, distribution, screening, and offer management. Since its inception, CXC has transitioned multiple agency suppliers under consistent terms of agreement. Niche suppliers appointed are able to cater for client specific and geographical needs. CXC has also put in place a sponsorship avenue as this client was looking at global redeployment of their resources across multiple regions. Additionally, four niche renewable suppliers are under negotiation, aiming for three specialist suppliers per job family to ensure consistent delivery.

CXC has delivered significant cost savings for this renewable energy client, with our direct sourcing fees provide a cost savings channel compared to the standard rates charged by agencies. We also provided access to a pre-established agency supplier panel, allowing for quick and easy deployment without requiring support from the client’s procurement or legal team.

Other indirect cost savings as a result of CXC’s solution include:

  • Reduction in time to hire
  • Reduction in invoice processing by shared service team in China. Ability to audit with one source of truth for time and labour.
  • Moved from individual purchase order (PO) per worker to bulk PO’s
  • Introduction of PO forecast report to aid with approvals
  • Reduced finance administration time spent managing supplier reporting; from 13 vendors to one
  • Timesheet data downloaded from Oracle and uploaded to CXC systems, saving contractor and hiring manager administration time – from multiple suppliers and systems to one
  • Redistribution and reprioritisation of supplier management tasks from Talent Acquisition team to CXC 
  • Suppliers contractually engaged by CXC, – saving client’s procurement and legal resources to negotiate and manage contracts and suppliers
  • Introduction of daily rate as standard engagement vs hourly rate to reduce cost blowout due to overtime
  • Standardisation of pay rates and per diem across workers
  • Reporting on overtime and per diem usage – highlighting overspend and risk
  • Contingent workers start date coordination
  • Worker redeployment – visibility of resource projected use via reporting to enable efficient redeployment 

Reach out to us today to explore how CXC’s MSP solution can help you drive efficiency, improve supplier management and significantly reduce your costs.


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About CXC


At CXC, we want to help you grow your business with flexible, contingent talent. But we also understand that managing a contingent workforce can be complicated, costly and time-consuming. Through our MSP solution, we can help you to fulfil all of your contingent hiring needs, including temp employees, independent contractors and SOW workers. And if your needs change? No problem. Our flexible solution is designed to scale up and down to match our clients’ requirements.

CXC Global