get the most out of your flexible workforce with services procurement
DESCRIPTION
As a company’s employee landscape shifts to include more flexible workers, including project-based workers, it becomes increasingly more important and apparent that gaining visibility into this portion of a company’s workforce is not only necessary but vital to the future operation of the business. Companies have recognized the need to manage their temporary and professional staff (or contingent staff) through a Vendor Management System (VMS) but what about the projects and the consultants or workers associated with those projects obtained through a Statement-of-Work (SOW)? This category is managed through a process known as Services Procurement. Services Procurement is a process for buying and managing complex service categories. Unlike procuring physical goods, buying services is usually less centralized within a corporation and relies on a completely different supply chain than physical goods. The management of SOW engagements is dramatically different than that of contingent staffing. Beeline’s Services Procurement tool provides more than just insight into the workers and projects. This webcast will educate you on the benefits of managing this work group, over and above the cost savings it can provide.TRANSCRIPT
Getting the Most Out of Your Flexible Workforce with Services Procurement Presenter:
Amy Woodham, Product Manager – Beeline
July 25, 2012
HR.com Webcast
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Social Media
• Follow and contribute to the webcast
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Agenda
• Where does Services Procurement Fit?
• Defining Services Procurement
• Common Terminology
• Current Trends
• Market Problems
• Organizational Benefits
• Key Considerations
Where does Services Procurement fit?
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Where does Services Procurement fit?
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Where does Services Procurement fit?
Professional Staffing
Temporary Staffing
Services Procurement
Outsourced Workers
• Resource augments current staff (for example, PM/IT resource)
• High value added• Adds capacity / increases
flexibility and scalability• Immediate cost savings
opportunity• Typical implementation
focuses on IT Contractors first due to large volume
• Repeatable hiring process• Compensated hourly,
usually to a rate card• Managed by Organization• Individual resources
• Commoditized skills• Task oriented/lower value• Adds capacity/increases
flexibility• Highly repeatable hiring
process• Compensated hourly• Managed by Organization• Supplier executes per
internal requirements• Individual resources
• Specialized skills not inherent to current staff
• Want to develop knowledge
• Typically brings expertise measured on delivery
• Compensated based on competitive bid of deliverables or SOW outcome
• Complex contracts deliverables
• Milestone-based work with awards/penalties associated one to many resources
• Longer duration contracts that don’t change often
• Not core business function• Supplier manages to
internal requirements/SLAs
• Open-ended employment relations with the supplier
• 1 to many resources
• What is the difference?
• Specialized skills not inherent to current staff
• Want to develop knowledge
• Typically brings expertise measured on delivery
• Compensated based on competitive bid of deliverables or SOW outcome
• Complex contracts deliverables
• Milestone-based work with awards/penalties associated one to many resources
Services Procurement
Defining Services Procurement
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Defining Services Procurement – What is it?
Services Procurement is a process for buying
and managing strategic outsourcing of
work and consultancy through a Statement of Work (SOW)
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Poll
• Is your Services Procurement process centralized, decentralized, I have no idea?
Common Terminology
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Common Terminology
CompetitiveBid
Milestone/Deliverable
Time&Materials
SO
W
RF
xFixedBidProject
Current Trends
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Current Trends
95%looking for
Services Procurement 14% organizations claiming SOW
visibility
Source: Aberdeen
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Current Trends – Growth Outlook
Source: Staffing Industry Analysts
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Current Trends – SOW based spend gaining visibility
65-78% of companies non full-time employee labor spend falls into SOW
based engagements
Market Problems
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Market Problems – What we’re hearing
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Market Problems – Who needs it?
• Fortune 500
• Global 1000
• You?
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Market Problems – Can you answer?
• Do you have visibility into your Statement of Work initiatives?
• Are you effectively managing this spend category?
• Is a competitive bid process used to generate the best cost and outcome?
• Do you have the data you need to trend project costs and analyze quality?
• Does your organization have insight into the budget and scope of all projects?
Organizational Benefits
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Poll
1#• What is your #1 driver to implement a
Services Procurement solution?
– Visibility – Compliance – Cost Savings– Quality – Operational Efficiency
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Organizational Benefits
• #1 reason to implement a Services Procurement solution is…
VISIBILITY
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Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
COMPLIANCE
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Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
OPERATIONAL EFFIENCY
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Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
COST SAVINGS
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Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
QUALITY
Key Considerations
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Key Considerations
• VMS providers, there are a lot of different options
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Poll
• Is your company currently building a business case?
– Yes, we are currently trying to implement a solution– We are 3-6 months out from implementing a solution– We are 6 months+ out from implementing a solution– I do not know
Summary
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Summary
• Where does Services Procurement Fit?
• Defining Services Procurement
• Common Terminology
• Current Trends
• Market Problems
• Organizational Benefits
• Key Considerations
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Summary – Download our latest whitepaper
• http://www.beeline.com/thought-leadership/whitepapers/services-procurement/
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Summary – About Beeline
• Founded in 2000 & an independent subsidiary of Adecco Group S.A. since January 2010
• Headquartered in Jacksonville, FL with key hub locations in Chicago, London, Zurich and Manila
• 100+ clients and approaching $8B in spend under management
• Support of all services types – Contingent Staff (Staff Aug), SOW, Offshore, Recurring Services & Outsourced Workers
• Industry leading Usability, Reporting and Business Intelligence
• Proven integration with ERP and other third party platforms
• A 2010 & 2011 Staffing Industry Analysts “Top Overall Performer”
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Questions