Case Study: Leading Australian Oil Company achieves automated external labor management and cost savings with SAP Fieldglass

Leading Australian Oil Company - Leading Australian Oil Company

An Australian oil company managing a $27 million flexible labor force had no formal processes or technology, relying on a decentralized, fragmented approach that created compliance and visibility gaps. The company faced no single point of accountability, limited compliance controls around long‑term contractors, poor spend and workforce visibility, 54% of roles sourced from non‑preferred suppliers, misaligned pay rates, inefficient invoicing, and limited reporting.

To address this, it implemented a Managed Service Provider (MSP) and the SAP Fieldglass Vendor Management System to standardize processes, governance, supplier management, compliance, and safety visibility. The integrated MSP+VMS approach is expected to drive measurable savings: 5–9% improvement on supplier margins, 3–5% on pay‑rate harmonization, 4–7% reduction in demand for long‑term contractors, and 5–10% improvement in supplier management, improving nearly all aspects of external labor management.