© 2012 Crain Communications Inc

Thought Leadership:

Evaluating Which Program Model WorksBest for You

Moderator: Anne Osty, VP, Sales & Marketing,Staff Management | SMX

Panelists: Margie Durham, Director, HR Talent Services, Dell Inc. Lisa McKillop, Sourcing Manager, Raw Materials and Facilities,

Pittsburgh Glass Works LLC (PGW)

Sponsored by:

Thursday, Sept. 20 | 2:15 pm | Room 304

Confidential and proprietary © 2012 Staff Management | SMX

CWM Program OptionsEvaluating Which Program Model Works Best for You

September 20, 2012

Confidential and proprietary © 2012 Staff Management | SMX

Anne Osty

Vice President of Sales & Marketing

Today’s Discussion:CWM Program Options

•Dell’s Global Contingent Labor Strategy•PGW’s Key Drivers for Contingent Workforce Management•Discussion & Audience Questions

Confidential and proprietary © 2012 Staff Management | SMX

Solving The Global Contingent Labor Challenge

Margie Durham, Director, Talent Services

Confidential and proprietary © 2012 Staff Management | SMX

The Global Contingent Labor Challenge

Disparate ways to acquire:

MSP Program(US ,Canada, India, UK, Ireland, Mexico,

Panama, Chile, Columbia, Canada)

Statement of Work (SOW)

Direct Temp Agency Hire Multiple Partner/Resource Management Groups

Variation in rates for similar skills

Poor Manager Experience

Limits buying power potential

Lack of Overall Visibility

LimitedGovernance

This leads to a number of challenges and risks

Non-Employee Categories

Independent Contractor* Assigned Workers* Consultants* Statement of Work*

Outsourced Provider (OSP) General Services

Focu

s A

rea

In 2005, Dell begin implementing a contingent labor solution & since then has been working on globalization & standardizing that solution with the changing business strategy & increased demand for contingent labor.

Dell needs to enhance its contingent labor strategy.

Talent Services

Confidential and proprietary © 2012 Staff Management | SMX

Our Global Contingent Labor Solution Plan

Talent Services

Benefits

Core PillarsGlobalization Technology Governance Program & Change

Management

Implement a single global Vendor

Management System (VMS)

Establish governance model to gain

compliance and mitigate risk

Manage branding, education, adoption,

sponsorship, andstakeholder alignment

Define and implement global labor solutions

• Enhanced user experience• Overall visibility & tracking• Risk mitigation

• Maximize value• Grow strategic partnerships• Flexible solutions that meet business needs

Build a Global Labor Solution that provides flexibility, value and risk mitigation.

Single destination/path to acquire labor

Standardized process based on labor

category Increased value through

strategic partnerships

Improved Business

ControlsDifferentiate

Dell in contingentlabor marketplace

Our

Mis

sion

How

we

will

exe

cute

Exp

ecte

d R

esul

ts

Confidential and proprietary © 2012 Staff Management | SMX

Global Contingent Labor Category ProgramsInternalContingent Labor

Customer Facing Contingent Labor

Customer Facing Managed Deployments

IndependentContractor

Statementof Work

Definition Staff Aug resources, paid by time & expenses for internal needs.

Staff Aug resources, paid by time & expenses for billable work to external clients

Client deployment resources can be paid by time orproject. Partners maintain a worker bench for fast deployment

Individuals operating as an entity paid by time or deliverables for external billable or internal needs

Milestone/deliverable based contract with a supplier to deliver an end product or solution

Business Utilization All Non-Services Services Services All All

Current State Established Established New New Established

Evolution Optimization Optimization Transformation Transformation Transformation

CurrentInternal Contingent Labor

Customer Facing Managed Deployment

Customer Facing Contingent LaborAcq

uisi

tion

Met

hods

Internal Contingent Labor

Labor Categories

Re-alignment of contingent labor category programs provides business flexibility, mitigates risks & gains cost effectiveness.

Customer Facing Contingent LaborIndependent Contractors

Statement of Work Independent Contractors

Statement of Work

Shifting Contingent Labor Category Mix

Future

Labor Categories

Internal Contingent Labor

Talent Services

Confidential and proprietary © 2012 Staff Management | SMX

Lisa McKillopSourcing Manager, Raw Materials & FacilitiesPittsburgh Glass Works (PGW LLC)

Responsible for $110M in critical raw materials & services spend inclusive of contingent labor and managed staffing

•9 facilities across the United States and Europe•100+ automotive replacement glass branches

Confidential and proprietary © 2012 Staff Management | SMX

Key PGW Drivers for Contingent Workforce Management

• Maximize return on workforce investment• Quick deployment of new services, improved agility• Limited resources to devote to screening, recruiting, onboarding, and offboarding• Flexibility to adjust to changes in business cycle without adding/shedding

permanent positions, provides ability to overcome short-term capability deficiencies• Provides a method to accommodate the impact of hiring restrictions

Confidential and proprietary © 2012 Staff Management | SMX

Key PGW Stakeholders

Executive VP & COO

VP of Manufacturing

VP of Manufacturing VP of HR VP of

Procurement

Confidential and proprietary © 2012 Staff Management | SMX

PGW Contingent Workforce Management Models

ManagedServices

Hybrid Vendor on Premise (VOP)

MasterSupplier

Outsourcedworkforce management with responsibility for labor delivery, process management and results.

VOP program with some aspects of a Managed Services program - responsibility for production & quality metrics.

On-sitemanagement of contingent workforce.

National branch-based master supplier program supports automotive staffing branches.

Confidential and proprietary © 2012 Staff Management | SMX

100+ Automotive Replacement Glass BranchesMaster Supplier

Canada

USA

Alliston, ONPGW Satellite: AssemblyManaged Services

PGW Contingent Workforce Management -Locations

Managed Services

Hybrid

Vendor on Premise

Master Supplier

O’Fallon, MOPGW Satellite: AssemblyManaged Services

Talladega, ALPGW Satellite: AssemblyManaged Services

Mid Ohio, OHPGW Satellite: AssemblyManaged Services

Evart, MIPGW OEM: FabVendor on Premise

Chillicothe, OHPGW: DistributionVendor on Premise

Berea, KYPGW ARG: FabHybrid

Tipton, PAPGW OEM/ARG: FabVendor on Premise

Confidential and proprietary © 2012 Staff Management | SMX

Discussion