Employee Benefits Sourcing Delivers Savings While Improving Service Levels


A leading global transport company anticipated generating significant cost savings and scale efficiencies as the direct result of a merger. A majority of the cost savings were expected to come from a North America-wide strategic sourcing initiative, within which Employee Benefits was targeted as a key savings area. The company lacked deep domain expertise in sourcing employee benefits – given the potential for significant savings, but also the risk involved in sourcing this category, the company turned to OnDemand Resources to provide a strategic sourcing expert with deep experience sourcing the employee benefits category. Their desire was to deliver savings while maintaining benefits levels, and also transfer category knowledge onto their in-house team for on-going effective category management. OnDemand offered several consultants with the desired background, and the company chose a member of our OnDemand Professional Network to lead and implement the project.


OnDemand consultant provided hands-on project leadership for cross-functional teams in understanding and defining requirements and managing the transition throughout the company. He followed a sourcing methodology that included spend analysis and requirements gathering, especially focused on understanding the current benefits levels, market research and sourcing strategy development, and contract negotiation and implementation. The consultant worked closely with internal resources to develop and implement an e-auction process for each product within Employee Benefits category in order to maximize marketplace competition and savings while maintaining – if not improving – each segment of the employee benefit program.


The results of the process far exceeded our expectations, especially in light of the very short timeframe

Director, Indirect Sourcing

As a result of OnDemand consultant’s leadership, the team far exceeded the company’s expectations for the five month engagement, delivering an overall cost savings of 13% on an addressable spend of $36M while significantly consolidating the number of preferred providers in North America.