When it comes to an MSP program, cost savings recommendations that can yield results year over year without affecting candidate quality or causing business disruption are ideal. Although it can be difficult to find cost savings if you’ve had the same program for a few years, it is possible. And now you’re probably wondering, how?
By Planning A Strategic Roadmap
By planning ahead and creating a strategic roadmap, cost savings ideas can become real over time. First, it’s important to establish where initial savings opportunities exist and create a timeline to achieve. Whether you are a generation 1 program or a generation 3 there are always savings opportunities to consider. Start with the basics and increase your cost savings initiatives over time. In order to consistently drive savings, it will also be important to utilize your resources and be innovative with your ideas.
Create An Estimated Timeline
Whether or not you know exactly how long your current program is going to be in place, you can put together an estimated timeline for achieving savings. Lay out your cost savings initiatives in groups of priority, pick 1 to 3 years to start and then plan which initiatives you would like to execute and in what order over the time period. This will, of course, probably change over the course of your program but it’s easier to start somewhere and tweak as you go than to have no plan in place.
Start With The Basics
Start by focusing on standard cost savings processes, such as standardized rates and a volume rebate, which will most likely increase as spend continues to grow. Also, focus on creating a strong supplier relations partnerships and ensure that the suppliers understand the business needs and how the organization is changing so that they can be aware of things like tenure limits, M&A and more. Establishing strong partnerships will only help execute successful initiatives in the future.
Utilize Your Resources
Have an incredible MSP Provider? Leverage them to help create and execute your strategic savings roadmap. Collaborate with them to find proactive savings, benchmark rates and provide the most competitive pricing for sourcing and delivering all types of contingent labor resources. If your program is self-managed, have your internal program team work closely with business stakeholders, suppliers and procurement to identify and drive savings initiatives.
There are always going to be standard ways to find cost savings whether it’s through a rate card or tenure savings, so consider something outside of the box as well. Work to improve the program through temporary and services procurement initiatives, supplier optimization or by implementing demand management strategies. Don’t be afraid to also introduce new proactive savings recommendations through Direct Sourcing and Contingent RPO solutions. Additionally, you can always continue to increase cost savings through different types of savings you already have in place.
By building an evolving strategic program roadmap, it’s possible to produce continued aggregated savings year over year. Learn how DZConneX Generated Continuous Savings for a Decade Long MSP Program here.