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A Global Pharmaceutical Firm
Challenge
For more than six years, Manpower has provided a Managed Service Program (MSP) solution to a global pharmaceutical firm headquartered in the Midwest with an average annual spend of $145 million and more than 100 suppliers. As the client's program provider and advisor, we are charged to report annually on cost avoidance within the contingent labour program.
Download PDFAs the managed service provider, Manpower Business Solutions provides "one-stop-shopping" for all program needs, resulting in reduced client resources spend on order or program management activities.
Since the beginning of this program, Manpower has generated the following client-audited cost avoidance results:
| Year | Total Savings | Savings as % of Total Spend |
| Year 1 | $10.7 MM | 7%* |
| Year 2 | $20.2 MM | 14% |
| Year 3 | $19.0 MM | 13% |
| Year 4 | $14.3 MM | 11% |
| Year 5 | $15.2 MM | 11% |
| Year 6 | $16.8 MM | 14% |
| * Program not fully online in Year 1 | ||
Results
Manpower Business Solutions achieves year-over-year cost avoidance through a structured program designed in collaboration with the client. Program stakeholders designed the following process for delivering savings in each contract year:
Year One (startup) - The incumbent rates establish a baseline for cost savings calculations.
Subsequent Contract Years - Cost avoidance is measured by taking the current year's spend using baseline (Year One) rates and subtracting the current year's spend using the negotiated program rates.
The client has recently expanded their program with Manpower Business Solutions to include multinational operations.
Manpower Business SolutionsManpower Business Solutions has managed some of the most sophisticated workforce management solutions for more than a decade. Our clients gain measurable cost savings, improved workforce quality, enhanced analytics to drive improvements, and mitigation of employment-related risks through our Managed Service Programs.
To learn more about how we can drive cost savings and cost avoidance in your contingent labour program, please complete our contact form and we will follow up with you.
