Case Study: Nationwide Insurance Saves Money and Improves Quality of Suppliers

Nationwide at a Glance

COMPANY: Nationwide Insurance

INDUSTRY: Insurance

HEADQUARTERS: Columbus, Ohio

GOAL: Find a better way to manage
Nationwide’s supplier base and maximize its value

THE SOLUTION: Peopleclick Vendor
Management System (VMS)

SOLUTION DESCRIPTION:
Peopleclick VMS™ is a web-based,
enterprise-wide vendor management system that automates, tracks and reports on processes for engaging contractors and working with staffing firms. From leveraging preferred vendor relationships and negotiating lower rates to eliminating maverick spend and managing headcount to budget, VMS helps companies reduce the cost and increase the quality of contingent labor.

Peopleclick Helps Streamline Hiring Process for IT Consultants

The Challenge
Highly regarded for helping its clients successfully manage their money,
Nationwide Insurance recently discovered its own investments in its contingent workforce were not realizing maximum yield.

One of the world’s largest insurance and financial services companies,
Nationwide, as recently as four years ago used more than 50 companies to provide external IT consultants.

“They often charged us rates that were above industry averages for similar work,” said Charles Ritter, Nationwide director of IT resource management. “What’s more, there was little accountability on the quality of the work they delivered. Clearly, we needed a better way to manage our supplier base and make sure we were getting maximum value for our dollars.”

The Solution
The “better way” came from the Peopleclick Vendor Management System (VMS), delivered through IBM Managed Services. The Peopleclick solution resulted in financial savings for Nationwide, while improving the quality of contractors and suppliers.

Ritter recalled that several other firms’ capabilities were assessed for the project, but “once we saw Peopleclick VMS, the choice was easy” because it established metrics by which Nationwide could measure suppliers.

“The value of the program is the metrics Peopleclick can provide and how Nationwide has used them,” said Ritter.

Erik Morse, vice president of product strategy at Peopleclick, said being an IBM Business Partner is also an invaluable advantage.

“Potential clients ask us, ‘How do we know the system won’t go down?’ Our answer is, ‘IBM gives us a 24x7 environment that’s scalable and reliable,’” he said. “There are plenty of companies in the offsite hosting business. But will they always be around? Our clients trust in Peopleclick and know IBM has an impeccable reputation for being a reliable, long-standing provider.

The Results
Ritter said the Peopleclick solution delivered through IBM Managed Services gave his Nationwide team “the tools we needed to streamline our processes, improve response times and utilize the system data to generate better quality suppliers. Ultimately, by having this formal data, we’re able to reduce the costs of the suppliers providing IT-related services.”

In fact, Nationwide reduced the number of its suppliers by half, Ritter said. Now its supplier rates are market competitive and the services they provide have improved significantly.

“Contingent labor is a very large expenditure for any company,” said Ginny Gomez, senior vice president of product management and marketing at Peopleclick. “Nationwide’s previous method was a very manual process with lots of people and paperwork involved in hiring and managing IT consultants from a large number of vendors. Using VMS metrics, Nationwide is getting better quality candidates for its IT work at lower rates.”

“Today we run tens of millions of dollars through the application, and we would be uneasy with anything less than the stellar support that Peopleclick and IBM have provided,” concluded Ritter.

About Peopleclick
Peopleclick provides software and services that empower companies around the world to find, attract and hire quality people—in less time, with less risk. Peopleclick’s technology, consulting expertise and support give companies the vision and flexibility to strategically manage all of their talent resources—whether they are salaried, hourly or contingent. Founded in 1997, the privately-held company currently serves 1,800 clients in 192 countries, including 54 of the Fortune 100. Peopleclick products support users in organizations ranging in size from large, multi-national corporations to small and medium-sized businesses.

For more information on Peopleclick and its market-leading talent acquisition technology and services, visit www.peopleclick.com.