Customer success story

Delivering strategic Services Procurement management for a US grocery giant

We've been working with a leading food and drug retailer who operates across 35 states under 20 renowned brands. In 2021, we initiated a Managed Service Provider (MSP) program, encompassing Independent Contractor Compliance, Statement of Work, and Profile Management services for administrative, engineering, professional, IT, and industrial roles.

Talk to our team View results

Impact at a glance

By Q4 2023, our partnership expanded significantly through strategic Services Procurement Management. Doubling program size in spend and transactions.

$90 million

In new SOW spend

2,200+

New SOW workers integrated

$12M+

In cost savings

500

New SOW agreements created

75+

New providers in 2025

Programme impact: Through a structured services procurement strategy, the organization has successfully enhanced cost efficiency, compliance, and supplier performance while optimizing its contingent workforce and service provider engagements.

$79.238B

Company revenue

270,000

Number of employees

Region supported

Retail

Industry

The Situation

An integrated MSP programme

Our client is one of the biggest food and drug retailers in the United States, operating across 35 states and the District of Columbia under 20 widely recognized brands. In 2021 our partnership began, creating an integrated Managed Service Provider (MSP) program, which includes Independent Contractor (IC) Compliance, Statement of Work (SOW), and Profile Management services addressing the needs for administrative/clerical, engineering, professional, IT, and industrial talent.

In Q4 2023, we further expanded our solution to include Services Procurement Management, doubling the size of our program in terms of spend and transactions by turning the focus to strategic SOW providers.

Partnership began

2021

Creating an integrated Managed Service Provider (MSP) program.

Solution expanded

Q4 2023

We further expanded our solution to include Services Procurement Management.

Key Challenges

Centralising services procurement

To improve efficiency in acquiring and managing external service providers, the organization sought a centralized services procurement framework. The goal was to enhance visibility, compliance, cost efficiency, and improve vendor performance across professional services, and Statement of Work (SOW) engagements.

Decentralized services procurement

Previously, a decentralized approach to procuring services led to inefficiencies, higher costs, and compliance risks.

Visibility and compliance

The goal was to enhance visibility, compliance, cost efficiency, and improve vendor performance across professional services, and Statement of Work (SOW) engagements.

Vendor relationships

The client aimed to streamline vendor relationships, optimize costs, and ensure proper classification.

Solutions

Transitioning to an optimized model

To transition to an optimized services procurement model, an extensive Organizational Assessment was conducted to evaluate the categories of external services spend, and to understand supplier capabilities by category and location.

A classification framework was implemented to correctly identify and align workers with the appropriate engagement types, ensuring that SOW was a suitable engagement method and mitigating compliance risks.

01 Assessment and classification +

An extensive Organizational Assessment was conducted to evaluate the categories of external services spend, and to understand supplier capabilities by category and location.

02 Procurement and supplier roles +

Standardizing services procurement processes across the organization.

Defining SOW supplier roles and capabilities for different service categories.

03 Compliance and rate cards +

Establishing compliance protocols to mitigate risk in labor classification including SOW.

Implementing rate card methodologies to control costs and drive vendor competition.

04 Analytics and reporting +

Enhancing visibility through analytics and reporting tools.

Guidant now acts as an extension of the client’s Procurement team, providing operational best practice guidance and real-time data-led insights, giving their managers and buyers access to the expertise they need to deliver transformational value through people-based SOWs.

Outcomes

Sustainable long-term benefits

Since adopting Guidant’s bespoke services procurement solution and working in collaboration, the client is now working to a well-defined, requirement-specific roadmap designed to promote consistent, sustainable long-term benefits.

$90 million

New SOW spend

$375-$400M

Projected annual spend

2,200+

New SOW workers

500

New SOW agreements

$12M+

Cost savings

Expansion of Services Procurement

Onboarding of strategic SOW providers, nearly doubling the procurement program’s size in terms of spend and transactions.

New SOW spend

$90 million in new SOW spend, with a projected annual spend of $375-$400 million.

SOW workers and agreements

Integration of 2,200+ new SOW workers and creation of nearly 500 new SOW agreements.

Supplier expansion

Supplier expansion to strengthen capabilities and coverage across various service categories.

Cost Optimization

Achieved $12M+ in cost savings through supplier negotiations, rebates, and workforce optimization, with further reductions targeted.

Risk Mitigation & Compliance

Ensured proper worker classification, reduced misclassification risks, and integrated compliance monitoring into contracts.

Strategic Vendor Management

Improved vendor selection, data-driven performance tracking, and expanded supplier network with 75+ new providers in 2025.

By shifting from a fragmented service procurement model to a centralized, analytics-driven approach, the organization has positioned itself for greater efficiency, transparency, and financial control in managing external service providers.

Project impact

Book a discovery call with
our workforce experts.

For HR, procurement, and talent acquisition professionals seeking to enhance their workforce strategy, Guidant Global offers expert guidance and actionable insights.

Talk to our team →

Solutions

Latest from Guidant Global

About

Delivering strategic Services Procurement management for a US grocery giant

An integrated MSP programme

Centralising services procurement

Transitioning to an optimized model

Sustainable long-term benefits

Expansion of Services Procurement

New SOW spend

SOW workers and agreements

Supplier expansion

Cost Optimization

Risk Mitigation & Compliance

Strategic Vendor Management