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WWW.EVERHIVE.COM Herbalife Brings Together Sourcing, Legal and HR to Reduce Fees, Time to Fill, and Generate Revenue CASE STUDY
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Herbalife Brings Together Sourcing, Legal and HR to Reduce Fees, Time to Fill, and Generate Revenue
CASE STUDY
CASE STUDY: HERBALIFE1 WWW.EVERHIVE.COM
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In business since 1980, Herbalife (www.Herbalife.com) is headquartered in Los Angeles and provides nutrition, weight management, energy fitness and personal care products to members in more than 90 countries. With approximately 8,000 employees, for 2015, it anticipates hiring about 1,100 workers in the U.S., with approximately 40% of them being contingent workers.
THE CHALLENGE:
About eight years ago, the MSP company that Herbalife was using dissolved. As a result, it faced the challenge of deciding what to
do next. Should it seek out another MSP? Should it research an RPO? After balancing the pros and cons, it decided now was
the ideal time to bring the effort in house. After studying the data, it was clear that an internal managed program (IMP) was the right move.
“We were forced to get creative,” Kristina Fisher, senior manager of strategic global sourcing at Herbalife, says. “The first thing we did was to analyze our sourcing, spend analytics, where the money was going, who was getting the money and what the money was being used for. What we learned was that there was a significant amount of money going out the door to supply us with a
pipeline of contingent workers.”
She notes the need to streamline the overall process. For example, there were multiple templates and processes in
place, and data had to be pulled from multiple sources, leading to inefficiencies. Thus the data being used to make decisions lacked
accuracy and was often redundant, effectively limiting potential results.
There were other challenges as well:• Lack of true partnership with vendors• Lack of visibility• Working with vendors who did not truly understand company culture• A disconnected process• No real control
AFTER THE COMPANY’S MSP DISSOLVED, HERBALIFE SEIZED THE OPPORTUNITY TO BRING ACTIVITIES IN HOUSE, AND IT’S PAID OFF IN MULTIPLE WAYS.
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Ultimately, it was the collection of data that led to change. The data indicated the need for cost reductions and a streamlined vendor utilization process.
Armed with appropriate data and knowledge of the problem, the company looked for answers.
THE SOLUTION AND BENEFITS:
Herbalife realized it must work around its specific business needs. It needed to develop and design a tailored strategy that provided more real-time
partnership building for top customer service that would yield great candidates. What resulted was an IMP that now serves to
fill various roles in all areas such as finance, legal, creative services, light industrial, HR and sourcing.
“Three heads are better than one,” Fisher says. “We know we have knowledge limitations, so by implementing a VMP tool within our IMP, we now have a collaborative process in place that has led us to not only getting quality goods and services, but people too.”
By implementing an IMP, Herbalife was able to achieve numerous successes:• Automate the process• Have a better relationship with staffing partners• Be more compliant• Have better decision making for the future• Better manage vendor performance• Develop more specific requirements for jobs• Get better-quality hires• Consolidate data• Have better access to metrics• Prevent payment delays• Take more control
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So, while the VMS tool is fairly new to Herbalife, the IMP is not. The implementation process did require change management that took about nine months and a deep dive into the old processes, but the company has already realized many benefits. Overall, the process was smooth and the transition was easy.
Fisher says that leadership was supportive of the recommendation to maximize its IMP because it was easy to build the case of significant ROI.
“In fact, if the spend was the same year over year, we would save about five million in the first year alone,” Brandon Moreno, director of talent acquisition and
contingent workforce, affirms. “In IT contingent workforce savings alone, this process yields about a 12% cost savings.”
Fisher adds that another benefit of having a fully functional IMP is that instead of spending on an MSP, HR was able to
reduce the fee by 3–5%, essentially enabling HR to fund its own program.
Overall, the greatest benefit to everyone involved is the improvement in relationships between in-house departments and external vendors. With greater trust and connectivity between people, the benefits quickly expand to the entire organization.
“Our vendors thrive on getting feedback and they work so hard on getting us top talent,” Lucero Gutierrez,
manager of contingent workforce, says. “This IMP has really fostered loyalty and we now have more transparency
in our vendor relationships than ever before. We have more accountability, a more connected process and a reduced time
to fill.”
For example, in the past, an IT position may have taken four to six weeks to fill; now it takes about half that amount of time.
“IN IT CONTINGENT WORKFORCE SAVINGS ALONE, THIS PROCESS YIELDS ABOUT A 12% COST SAVINGS.”
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THE BOTTOM LINE:
Herbalife is thriving with its IMP, both with a more productive workforce and improved communication. Vendors are happy, new hires are happy and cost savings are significant.
ABOUT EVERHIVE
At EverHive, productivity is our passion. A team of human resource (HR), information technology (IT), and procurement professionals with a business
bent, we’re currently the only company in the world offering major corporations (with contingent spends of $10 million-$100 million)
the expertise they need to create a vision for their overall contingent worker programs.
Since 1993, founder Brandon Moreno has been working with leading companies including Northrop Grumman, Sony, Cardinal Health, Herbalife, and others to bring order to the chaos that often surrounds talent attraction and contingent worker strategy. In so doing, he and his team have helped countless companies survive - and thrive - in a rapidly changing people landscape.
Unlike Managed Service Providers (MSPs), EverHive keeps the power where it belongs - with your own
company. We work with your internal thought leaders to assess and build a management process that fits your
company, your culture, and - ultimately - your bottom line.
Contact us today for a complimentary evaluation of your program at [email protected] or visit our website at www.everhive.com
