Monument accepted the challenge and presented multiple savings options ranging from conservative to balanced to aggressive. Ultimately, we agreed upon and implemented an aggressive Competitive Rate Savings strategy coupled with a supplier rationalization. First, we negotiated new terms with fewer suppliers. Next, we tweaked the supplier scorecard, which incentivized suppliers to be competitive with their rates while monitoring timeliness and quality. We set the % of Max Bill Rate to 90% but allowed suppliers to submit higher when necessary.
Savings for new contractors exceeded 13% and the client realized an incremental savings of $3.6mm. Even with the introduction of additional and aggressive savings strategies, the KPI that measures quality remained steady at a 20% chosen rate. Time-to-fill actually decreased from an average of 32 days to 19 days.