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Fueling Business Success Through Contingent Labor

Customer: A Petroleum and Petrochemical Manufacturer
Corporate Profile: Headquartered in Pennsylvania | Over 100 years in business | Over 4,000 retail outlets

Background:

After years of growth to become one of the largest gasoline distribution companies in the United States, this customer was in urgent need of improving the overall performance and return-on-investment of its contingent workforce program, which enabled the organization to remain flexible to adapt to rapid changes in market conditions. It also enabled the company to innovate within a highly competitive industry.

The Challenge:

The customer realized their highly-strategic contingent labor program faced some significant challenges:

  • Hiring managers were engaging contingent labor directly, creating risk and making spend difficult to track
  • High rates for contingent labor and services due to lack of competition and awareness of market rates
  • Poor candidate quality and attendance issues

ZeroChaos Solution:

The company selected ZeroChaos to provide a complete solution to transform the way it procured and managed contingent workers and services. Critical to achieving success was having a unified strategy of technology and services for its contingent workforce program – including a managed service program, vendor management system, employer of record services, and risk management services for worker classification and employment screening.

The Results:

By partnering with ZeroChaos and implementing our award–winning VMS/MSP solution, the company realized:

  • $500,000 savings annually on contingent labor spend
  •  Decreased hiring cycle time
  • Reduced risk with standard contracts and processes
  • Visibility into all spend categories

Onboarding at High Speed

2 months before NASCAR season, ZeroChaos received an urgent request from the company to on-board over 150 critical support workers for NASCAR events across the US. Without these workers, the “Chase for the Sprint Cup” would be more of a stroll. Recognizing the need for speed, ZeroChaos quickly transitioned the 150 workers. As the employer of record, ZeroChaos processed payroll, maintained employment contracts and paperwork and certificates of insurance, verified employment eligibility, assumed unemployment and worker’s compensation risk, and conducted background and drug checks. Thanks to ZeroChaos, the company was ready when NASCAR waved the green flag starting the new race season.

The Full Success Story:

After years of growth to become one of the largest gasoline distribution companies in the United States, an American petroleum and petrochemical manufacturer was in urgent need of improving the overall performance and return-on-investment of its contingent workforce program, which enabled the organization to remain flexible to adapt to rapid changes in market conditions. It also enabled the company to innovate within a highly competitive industry. 

Although the use of contingent labor was prevalent throughout the company, there were no measures in place to help gauge its success. Procurement and management of temporary workers and contracted services was decentralized with no oversight to enforce policies, procedures and performance. Not only was the company exposed to risk of misclassifying workers but also it was potentially overpaying for services. On more than one occasion, hiring managers complained about the quality of temporary candidates and that some temporary workers had accepted assignments but not appeared for work. 

At a company that was seeking operational excellence, senior leadership in procurement, human resources, and finance recognized they had an urgent problem to solve. It was time for a pit stop – to assess the current situation, to change the tires, to wipe the windshield clean, and to put high-performance fuel into the tank. 

How Success Was Achieved:

As an organization on the move – constantly innovating, evolving, and always delivering – the company selected ZeroChaos to provide a complete solution to transform the way it procured and managed contingent workers and services. Critical to success was a unified strategy of technology and services for its contingent workforce program – including a managed service program, vendor management system, employer of record services, and risk management services for worker classification and employment screening.

Rich Results:

With more than 125 years of history, the company has learned that success is as much about “how” you do something as “what” you do. That’s why the company continuously adapts and innovates to keep an edge, and to keep people moving. By partnering with ZeroChaos and implementing its award-winning VMS/MSP solution, the company estimated an annual savings of over $500,000 on its use of contingent workers and services.

With a deep understanding of the way people work, ZeroChaos helped the company to rethink the way it procured and managed contingent labor to better support business initiatives and lower operating costs. Working collaboratively, the MSP program managers transformed the relationships between hiring managers, talent suppliers, and temporary workers by providing the processes and strategic insights to help the organization make more focused, well-informed decisions to reduce risk, decrease hiring cycle time, and shrink operating costs. 

ZeroChaos took on the primary responsibility and administrative burden for managing the organization’s contingent workforce program – including overall program management, reporting and tracking, supplier selection and management, order distribution, consolidated billing across program suppliers, candidate submissions, on- and off-boarding, and more – and enabled the company to focus on what matters most, growing its business.

 

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