CASE STUDY

Statement of Work (SOW) Spend Management A Healthcare Client

Medical Technology Company Wrestles Statement of Work Resulting in a Unified Enterprise-Wide Program that Achieves 100% Industry Regulation Compliance
Utilizing IQNavigator, this medical technology leader gains complete control over Statement of Work projects, implements supplier performance, and automates the management of industry regulations. Client Overview

A leading medical technology company that designs, manufactures and offers innovative medical technologies for healthcare professionals. The company has more than 20,000 employees worldwide, sells in approximately 100 countries, and has $8 billion in annual global sales.

Business Challenges
The client spends approximately $120 million per year on Statement of Work (SOW) in the United States alone. The client had difficulty accurately classifying SOW projects, muddying the waters between what constituted SOW versus staff augmentation. Tracking project based spend was also a hurdle as there was no ability to apply and monitor length of time and other specified deliverables to individual projects. Project-based expansions, when required, were created as separate SOWs further obscuring total project spend and visibility into supplier performance. A vendor management system (VMS) was required that could: Accurately define and classify SOW & Project-based spend Apply and monitor project based agreements Provide visibility into Project-based spend Insight into supplier performance Working within the highly regulated medical device sector, the client also required a VMS that could automate compliance and mitigate risks involved with vast and highly complex industry regulations.

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C A S E S T U D Y: S O W S P E N D M A N A G E M E N T

IQNavigator Solution
Based on industry leading best practices and unmatched SOW capabilities, IQNavigator was chosen as the VMS provider. IQNavigators functionality addresses the unique and inherent needs of SOWs critical to the continued evolution of services procurement the client demanded. Define SOW IQNavigator helped the client re-define and re-classify each of its eight SOW categories, providing a baseline for which projects can be quickly defined as SOW or staff augmentation. Suppliers were also classified under each of the eight categories, and could be listed in more than one category. Supplier Management IQNavigators single-source system enabled the client to source SOW defined projects to a single supplier, using a fixed price and release payments upon successfully met milestones. IQNavigator also helped establish processes and disciplines for SOW supplier management, buying processes, approvals and rate structures with each supplier formalizing a cost savings strategy. New core reporting and dashboards, including milestone reporting and ad-hoc expenses, allow the client to view supplier performance against project deliverables. A Strategic Supplier Program ranked suppliers based on performance resulting in dramatic reductions in the number of suppliers and the leveraging of top tiered value suppliers across the enterprise. Compliance A Compliance Strategy automated the collection and compiling of supporting information required for government quality audits within IQNavigator into reports that can be run, printed and emailed with three simple clicks significantly reducing the manpower, human error factor, and time previously required to comply with industry regulations.

Outcomes
With IQNavigator in place, the company was able to clearly define and implement SOW guidelines to effectively source, procure, deliver and analyze all aspects of its SOW and Projectbased spend on an enterprise-wide basis: Realizing more than $55,000 in project savings in the first 30 days of program implementation alone Re-defining more than 60% of SOW as staff augmentation Reducing the total number of suppliers from 120 to 70 Reducing time-to-fill by more than 75% while greatly improving the quality of placements Additionally, the client was able to: Tie project based expansions to original SOWs providing further insight into supplier performance and overall project spend Analyze core reporting and dashboards in real-time holding suppliers accountable for project defined milestones and deliverables Automate the collection of information required for government audits mitigating risk of non-compliance

SPOTLIGHT
CONTROL & COMPLIANCE Global Program Management Supplier Management Risk Management

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