Customers
OVERVIEW
Owens Corning is a world leader in building materials systems and composites systems. Founded in 1938, the company had sales over $6 billion in 2005. Headquartered on the Maumee River in Toledo, OH, Owens Corning has a presence in almost every state and over 30 countries.
To support its 15,000 U.S. employees, Owens Corning has 100 medical plans provided by two self insured suppliers and 16 fully insured suppliers.
THE CHALLENGES
Because of the rising cost of health care, Owens Corning wanted to act progressively and encourage its employees to think and act differently about their health care decisions. Owens Corning wanted to engage their employees in the solution. To encourage this behavior, Owens Corning looked to initiate a Consumer Driven Health Plan (CDHP).
To shorten and streamline the procurement process for the CDHP, Owens Corning looked to HighRoads for help.
THE SOLUTION: HIGHROADS
Owens Corning wanted to simplify and streamline the RFP process and consolidate the information collected from proposals into a single format ready for review by their consultant. Additionally, the consulting firm retained by Owens Corning was given access to review the proposals, provide market expertise, and conduct in-depth analysis before making a recommendation. HighRoads provided Owens Corning with a solution that empowered them with
- End-to-end management of the RFP process- Owens Corning used Highroads to create the RFP event, circulate it to prospective suppliers, collect the proposals, and generate detailed reports on the proposals. Additionally, HighRoads allowed suppliers to confirm their intent to bid so that Owens Corning was able to determine early if the RFP had to be sent out to additional suppliers.
- Reverse auction capability - Reverse auction capabilities allowed Owens Corning to get the best possible pricing for the CDHP without sacrificing quality. With a reverse auction, suppliers were able to submit their proposal then immediately see where their bid ranked. Suppliers had a chance to revise their bid up to the closing of the event. This created transparency in the bidding process to ensure fairness in awarding the contract.
- Proposal analysis - Using HighRoads functionality, Owens Corning and its consultant were able to save a significant amount of time when consolidating proposals the proposals into a single format for easy comparison and analysis.
THE RESULTS
With HighRoads, Owens Corning realized significant time savings and process improvements during the RFP process for the CDHP including:
- An average of 3 bids from participating suppliers
- A reduction in ASO fees of 6.5% (from initial bid to final bid)
- A significant reduction in time required to evaluate proposal
Upon completion of the CDHP project, Owens Corning expanded the use of HighRoads to manage their benefits program in various areas including:
- Procurement - HighRoads has been used to manage seven auctions and one supplier contract renewal.
- Information management and intelligence - HighRoads is utilized by 12 users to manage 227 documents, including plan designs and pricing models from RFPs, SPDs, and supplier performance guarantees. Workflow and version control, advanced search features, and document management capabilities help Owens Corning maintain and analyze their benefits programs.
- Supplier management - HighRoads is used to monitor the performance of four suppliers to ensure adherence to contract terms and employee satisfaction.
With the use of HighRoads and careful management of their employee benefits programs, Owens Corning was able to realize significant cost savings. In 2004, Owens Corning's health care benefits costs decreased versus the national trend of an 8-9% increase.