Redefining Vendor Workforce

 A Scalable Framework for Reducing Cost and Increasing Operational Resilience

Executive Summary: Faced with a fragmented, high-cost contingent workforce model, the Display and Optics team undertook a strategic transformation of Project Coordinator (PC) operations. By reducing headcount, shifting routine work to a vendor-supported shared services model, and standardizing training and metrics, we achieved a 40% cost savings and set the foundation for a scalable, resilient program. This effort not only reduced EM/PM time and cost burdens but also established a blueprint for broader organizational adoption.

Background / Context:

  • Symptom: 16 contingent Project Coordinators (PCs) spread across sub-teams with little continuity or standardization.

  • Problem: High turnover, escalating costs, and reliance on PCs to plug systemic operational gaps.

  • Goal: Reduce soft and hard costs while building an operational framework to support business growth and scalability.

Background / Context:

  • Problem Statement: The existing PC model caused operational inefficiencies, loss of institutional knowledge, and budget bloat. Engineering Managers (EMs) and Project Managers (PMs) spent significant hours hiring, training, and managing short-term workers for long-term needs.

Approach & Actions Taken:

1. Assessment & Cost Analysis

  • Total of 16 PCs with an average hourly rate of $140.

  • 50% of tasks are repeatable and standardizable.

  • Knowledge loss and retraining cycle repeated every 12-24 months.

2. Role Rationalization & Categorization

  • Created two workstreams:

    • FTE-aligned needs (Lab scheduling, item receiving)

    • Vendor-capable support (budget tracking, procurement, etc.)

  • Result: Need narrowed to 7 contract workers:

    • 3 Business Operational PCs 

    • 4 support PCs (lab, scheduling, logistics)

3. Engagement & Buy-In

  • Conducted a mini roadshow to other teams with similar needs.

  • Validated interest in a scalable model.

  • Incorporated feedback on shared services expectations.

4. Vendor RFP & Evaluation Process

  • Created vendor RFP with support from CWx. Evaluated final presentations with a team of CWx, Finance, Engineering, and Research.

Figure 1: Vendor Evaluation Scorecard

  • Conducted a 48-hour challenge and blind scoring for case Studies.

  • Selected vendor with on-shore/near-shore model and strong compliance posture.

5. Implementation & Standardization

  • Built SOPs and training materials owned by the company.

  • Developed onboarding playbook.

  • Seamless transition with full coverage maintained.

Figure 2: Gains

Figure 3: Annual Cost by PC Level: Before vs After

Figure 4: FTE Hours Spent per Hire

Strategic Impact:

  • Reduced dependency on short-term PCs.

  • Enhanced operational resilience and standardization.

  • Built a scalable vendor-managed backbone for future team expansion.

  • Shifted qualitative patchwork into a data-driven service model.

Org Charts:

Figure 5: Organization before implementation

Figure 6: Organization after implementation

Quotes / Testimonials:

"We have never experienced the level of partnership shown during this vendor program development. It addressed our co-employment concerns proactively." - Summer, CWx

"The results exceeded expectations. I’ll be showcasing this program to other directors." - Marty, PM Manager

Lessons Learned / Challenges Overcome:

  • Initial skepticism was mitigated through meetings, walkthroughs, and documentation.

  • Partnered with CWx to ensure compliance alignment.

  • Provided consistent touchpoints to overcome resistance from teams used to embedded PCs.

  • Procurement delays are handled via upfront planning and a scoped RFP timeline.

  • Built in handoffs and manager layers to handle rapid scaling.

Scalability Roadmap:

  • Created an expansion strategy and cost reduction model for the new team onboarding.

  • Produced onboarding documents and templates.

  • Program design enables broader organizational ownership or integration.

  • Shared learnings and updates org-wide via quarterly showcase decks.



*Please note that the information in this document has been scrubbed to not expose internally private information. While the context and value are there, some of the details have been altered to become more directional.