How a leading US healthcare services provider reaped the benefits of full-service Statement of Work management.
Our client, a major US healthcare provider, engaged Guidant Global to manage their non-employee workforce program with a core focus on their complementary IT workforce.
As a strategic workforce solutions provider, Guidant Global provides clients with fresh innovative approaches to better manage and engage non-employee workers. This includes both standard and complex categories of work, using the latest technology, and understanding the latest workforce trends.
In collaboration with our prestigious healthcare customer, we developed a considered approach that would evolve their IT resourcing strategy over a phased roadmap. Using our experience and expertise, we knew that an administrative SOW holds intrinsic value, but full procure-to-pay automation and competitive sourcing would unlock the maximum ROI for our customer.
A three phased approach
Phase 1 - Contingent worker MSP and VMS implementation
After engaging with the client and getting to fully understand their needs, our first objective was to establish a controlled engagement framework, as well as VMS automation for all contingent workers. This was a major undertaking, especially as our client had a previously unmanaged environment. But despite the substantial spend, highly specialised roles and niche suppliers, we felt it was necessary for the client to get maximum value from their contingent workforce.
Phase 2 - Capturing SOW activity
Once the contingent program was operating at high efficiency, we captured all SOW activity within SAP Fieldglass. This allowed us to provide new levels of visibility and allowed us to effectively track resources, onboarding and payment data. Not only did this mitigate risk and streamline operations, but it also provided actionable intelligence to drive better supplier engagement and cost-optimised spending.
Phase 3 - Extending SOW strategy and governance
With phase 1 and 2 complete, the SOW management program was expanded to a full-scale service offering inclusive of competitive bidding. We employed a full-scale buy-to-pay SOW strategy under the governance of the Guidant Global MSP. The SOW program currently oversees:
- SOW module within the VMS to facilitate automation
- Decision support for every requisition to ensure the optimum sourcing channel
- Strategic sourcing and competitive bid process oversight
- Standardised templates for SOW documents
- SOW creation with clearly defined deliverables and payment terms
- Contract execution and onboarding compliance
- Supplier relationship and performance management
- Automated invoicing and payments
- Full reporting and analytics across the entire program
The new program was successfully deployed and continues to deliver exceptional results for the client, with improving outcomes every year. Some of the results so far include:
Expanding the program to SOW increased visibility to over 300 previously hidden IT resources. The visibility helped us streamline the supply base to 30-50 essential SOW suppliers — depending on speciality — spanning areas including digital, EMR, Lawson and more. The client now has the ability to easily compare and evaluate shortlisted suppliers on metrics such as quality and pricing. This has led to more strategic, informed decision making.
The Guidant Global team manages the SOW engagement, setting strict timelines for suppliers. This has resulted in streamlining, and more efficient engagement. Approval times for SOWs have decreased from 2 months, to 3-5 days.
High quality results
After implementing the competitive bid strategy, suppliers are now engaged based on their capabilities, as well as overall value. Ultimately, this has led to higher quality results and has removed personal bias from the decision making process.
Automation and compliance
Optimising the VMS tool for SOW has created efficiencies that were not previously realised. The VMS serves as a hub for all records, resulting in tighter controls, reduced risk and greater compliance.
New savings opportunities
By employing a competitive bid environment, our client has benefited from additional cost savings. The first competitive SOW resulted in 76% cost savings relative to the incumbent suppliers last paid price, without degradation in quality. The business was prepared to issue the SOW to the existing supplier before Guidant Global recommended the RFx. In another recent case, we were able to save our client $45 per hour when comparing SOW T&M rates to contingent worker rates and leveraging a competitive bid process.
All new SOW supplier requests are now provided with non-negotiable Guidant Global terms to avoid any delays with the adoption process. This has proven to be important, as the US market maturity and supplier awareness of SOW MSP is not currently as advanced as contingent worker MSP.
The real key to this program’s success is our strong client sponsorship. Starting with the executive sponsorship of the CIO, we have complete support and alignment with Guidant Global. This has enabled successful change management and opened avenues to present the SOW Management business case directly to key stakeholders.