Carve-out & VMS Change in 4 Weeks - MSP Model in Germany and the USA
Key Facts
- Day 1 capability: 100% productive operation from the carve-out date
- Project duration: 4 weeks (end-to-end)
- VMS changeover: from SAP Fieldglass to MAVES without interrupting operations
- MSP reorganization: Parallel in Germany and the USA
- System & governance separation: Complete decoupling from the Group setup
- Change & enablement: Organization, specialist departments and suppliers enabled within the project period
Executive Summary on the Time-critical MSP Carve-out with VMS Changeover
As part of a carve-out from a listed stock corporation to a newly founded GmbH in Germany and an Inc. in the USA, the external workforce had to be removed from an existing SAP Fieldglass group setup within just four weeks. At the same time, the switch was made to MAVES, the vendor management system developed by EMS.
EMS took over the complete project management, the system conversion, the parallel development of a new MSP operating model in both countries as well as training and change management. The aim was to achieve full Day 1 capability without interrupting ongoing operations.
The result was stable operations from day one and an independent workforce governance model suitable for SMEs in Germany and the USA.
Initial Situation in the Group Environment Before the Carve-out
The customer’s external workforce was fully integrated into the Group’s SAP Fieldglass system. SAP Fieldglass was used in both Germany and the USA, but without independent commodity or category management for external personnel deployment.
The carve-out removed all central governance structures, system access and operational control mechanisms. The newly formed organization did not have its own MSP structures, processes and responsibilities.
The external workforce was business-critical and had to be continued without interruption – under new legal, organizational and systemic conditions.
Challenge:
Time-critical MSP Carve-out with Parallel VMS Changeover
Our client was faced with an unusual combination of challenges:
Ensuring business continuity from Day 1
Extremely short time frame of just four weeks
Parallel carve-out in Germany and the USA
Simultaneous change of the vendor management system
Different regulatory requirements in DE and USA
High need for training and change in the new organization
The transition had to be fully Day 1-capable – without buffer times.
Objective:
Independent MSP Model and System Change in Four Weeks
Our client’s goals were to,
- to keep the external workforce stable from the reporting date
- to completely replace the existing Group setup
- MAVES to be introduced as the new central vendor management system
- Establish an independent MSP model in Germany and the USA
- quickly empower and relieve the new organization
The MSP and Transformation Solution from EMS in the Carve-out Context
EMS developed a focused carve-out and transformation approach with a clear prioritization on Day 1 capability. Project management, system conversion and operational MSP set-up were deliberately implemented in parallel.
EMS assumed both the technical responsibility for the VMS change and the operational management of the external workforce in both countries.
- Implementation
MSP Strategy and Implementation Under Extreme Time Pressure
The implementation was carried out in several parallel work packages:
Analysis of the existing SAP Fieldglass group setup
Development of approval, billing and reporting processes
Definition of carve-out-relevant data, processes and suppliers
Establishment of clear decision-making and escalation structures
Configuration and introduction of the VMS MAVES
Country Implementation: MSP Reorganization in Germany and the USA
Germany:
- Reconstruction of an independent MSP operating model
- Migration of current operations
- Mapping of national regulatory requirements
USA:
- Development of an independent MSP model
- Mapping of US-specific processes and regulations
- Integration into local HR and finance structures
Change Management and Enablement of the Organization
Parallel to the system and process development, EMS took over the change management:
- Training for specialist departments, purchasing and HR
- Onboarding and management of suppliers
- Accompanying communication measures to ensure acceptance
This ensured that the new organization was capable of acting from Day 1.
Role of EMS as an Operational Managed Service Provider in the International Carve-out
EMS assumed overall responsibility for the entire project:
Overall project management under extreme time pressure
Selection, implementation and operation of the VMS MAVES
Operational MSP business in Germany and the USA
Supplier and contract management
Compliance and risk management
Training and change management
- Results
Result: Stable Day 1 Operation Despite System Change
The carve-out and the VMS change were successfully implemented within four weeks.
Results achieved:
100 percent Day 1 capability
Stable MSP operations in Germany and the USA
Complete separation from the group setup
Successful VMS changeover without interrupting operations
The new organization's ability to act quickly
Outlook:
Scaling and Further Development of the MSP Model
The collaboration will be further expanded on the basis of the stable MSP setup:
- Further development of commodity management
- Expansion of further countries
- Optimization of MSP processes
- Use of analytics and key performance indicators
Similar Challenge?
EMS supports companies with SAP Fieldglass carve-outs, MSP setups and the operational management of external workforce models.
Alexander Schrüfer
MAVES - Vendor Management System (VMS)
MAVES – the modular VMS from EMS for efficient supplier and resource management.
