sia eu webinar jnj case study18 apr 2012

Industry Thought Leadership

Confidential Report NOT for Distribution | 2011 Crain Communications Inc. All rights reserved.

Europe

18 April 2012

3pm GMT/ 4pm CET

10am PST/ 1pm EST

This webinar is broadcast through your computer speakers via the audio broadcasting icon on

your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting

icon. If you continue to have trouble with the sound, you may dial into the call by dialing +44-

(0)20-3106-4793 and using access code 665 484 473. Need further assistance? Contact SIA

customer service at 800-950-9496 for the US and +44-(0)207-194-7754 for Europe

Quest for the Talent GrailThe evolution of the J&J programme in EMEA

Speakers:

Ann Snoeys Category Manager Contingent Labour EMEA J&J

Matt Wagner Manager Professional Services EMEA Fieldglass

Moderator :

Ton Mulders Director Strategic Solutions Europe - SIA

Sponsored by


Quest for the Talent Grail

Agenda

Webinar instructions

Sponsor opening

Changing Landscape in EMEA

J&J Case Study

Solutions Fieldglass

Q&A

Your questions are welcome!

Closure

2011 by Crain Communications Inc. All rights reserved.


Copies of the slides used will be distributed to all attendees within

24 hours following the webinar

A replay of the webinar will be available for CWS Council Members

at www.staffingindustry.com

Slides and Replays


Industry Thought Leadership About SIA



Todays Sponsor

Matt WagnerManager of Professional Services

EMEA


Fieldglass Overview



Changing Programme Landscape in Europe

Ton Mulders

Director Strategic Solutions

Europe

Staffing Industry Analysts


What are MSP and VMS?

Managed Service Provider (MSP) A company that takes on primary responsibility for managing an

organizations contingent workforce programme. Typical responsibilities of

an MSP include overall program management, reporting and tracking, supplier

selection and management, order distribution and often consolidated billing.

Vendor Management System (VMS) An Internet-enabled, often Web-based application that acts as a mechanism

for business to manage and procure staffing services (temporary help as well

as, in some cases, permanent placement services) as well as outside contract

or contingent labour. Typical features of a VMS include order distribution,

consolidated billing and significant enhancements in reporting capability over

manual systems and processes.

Source: SIA Global LexiconConfidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.


Source: Staffing Industry Analysts estimate, 2010

SwedenNorway

Finland

Japan

United States

UnitedKingdom

FranceGermany

Netherlands

Poland

Denmark

Italy

Portugal Spain

Ireland

Canada

Mexico

Brazil

Argentina

Belgium

Switzerland

Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

Global staffing market (to scale)

SouthAfrica

Australia


Source: Staffing Industry Analysts estimate, 2010

SwedenNorway

Finland

Japan

United States

UnitedKingdom

FranceGermany

Netherlands

Poland

Denmark

Italy

Portugal Spain

Ireland

Canada

Mexico

Brazil

Argentina

Belgium

Switzerland


Global staffing market (to scale)

SouthAfrica

Australia

Rest of World

Staffing market

80 billion

VMS Managed

5 billion (8%)

MSP Managed

7 billion (9%)

Europe

Staffing market

91 billion

VMS Managed

17 billion (19%)

MSP Managed

10 billion (11%)

North America

Staffing market

60 billion

VMS Managed

43 billion (72%)

MSP Managed

24 billion (39%)


0% 20% 40% 60% 80% 100%

Approved list

Consolidate existing suppliers

Tiered supplier list

VMS

Significant use of domestic outsourcing

Master supplier

Contingent Workforce in corporate planning

MSP

Try new suppliers

Use of an external vendor for IC compliance

HRO

RPO

Significant use of offshoring

SOW consultants incorporated into CW programme

Global management of contingent workforce

In Place Today Likely to be seriously explored within two years

European contingent workforce buyer priorities

Source: SIA Buyers Survey 2011


Most Complex

Least Complex

Not Recorded

1 UNITED STATES2 UNITED KINGDOM3 CANADA4 NEW ZEALAND5 HONG KONG CHINA6 SINGAPORE7 AUSTRALIA8 NETHERLANDS9 IRELAND

BELGIUM

Least Complex Markets

1 ARGENTINAGREECEITALY

4 BRAZILRUSSIASPAIN

7 KUWAITSAUDI ARABIATURKEY

10 EGYPTMEXICOPOLANDPORTUGALUNITED ARAB EMIRATES

Most Complex MarketsChallenge: Market complexity

Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved. Source: SIA Contingent Market Complexity: International Comparison


Challenge: VMS & MSP Appreciation gap


Customer Experience Buyer vs Supplier - VMS Customer Experience Buyer vs Supplier - MSP

Source: Staffing Industry Analysts Net Promotor Score Survey 2011

Promotors

Passives

Detractors


Challenge: VMS & MSP value-add continuation


Buyer NPS by Programme Length - VMS Buyer NPS by Programme Length - MSP

Source: Staffing Industry Analysts Net Promotor Score Survey 2011

Promotors

Passives

Detractors



In practice ..

Johnson & Johnson


Speaker

Ann Snoeys

Category Manager

Contingent Labour

Johnson & Johnson EMEA Cross Sector


Introduction J&J

Contingent Labour

Programme

Challenges of the Mature

MSP Programme

-Towards a Value Driven

Approach


Johnson & Johnson

More than 250

Operating Companies

In 60 Countries

118,000 Employees

Worldwide

Total sales of

$65 Billion in 2011

Founded in 1886


Broadly Based in Healthcare

Consumer Products

Consumer Products

Medical Devices & Diagnostics

Medical Devices & Diagnostics

PharmaceuticalsPharmaceuticals


Credo

The values that guide our decision making

are spelled out in Our Credo. Put simply, Our

Credo challenges us to put the needs and

well-being of the people we serve first.

Our Credo is more than just a moral

compass. We believe its a recipe for

business success.

Procurement is enabling function for, with &

through the business.

We leverage our supplier network.


Contingent Labour

Programme


S

u

b

-

C

a

t

e

g

o

r

y

L

e

v

e

l

2

S

u

b

-

C

a

t

e

g

o

r

y

L

e

v

e

l

1

Time and

Materials

Statement

of Work

Definitions: External Labour Classification

External Workforce

Contingent

Labour

Temp

Labour

Contract

Labour

Consulting

Services

Tactical

ConsultingStrategy

Consulting


Price

ComplexSimple

ConsultingTemporary

Low

High

Light Industrial / Office Temps

Professional

Contracting

Project Work

Operational

Consulting

Strategy

Consulting

SOW

Labour Type

Professional

Procurement Strategy


Maturity Evaluation

Decentralized

Preferred suppliers

Master Vendor

Managed Service

Provider (MSP)

Enterprise Workforce

Solutions

I II III IV V

Low

High

L

e

v

e

l

o

f

v

a

l

u

e

a

d

d

e

d

Several suppliers

Procurement done

on an ad-hoc basis

Management done

internally

Selective set of

suppliers selected

Contracts in place

Service level

agreements (SLAs) in

place

One supplier

(possibly managing

second and third tier

suppliers)

One point of

contact

Direct cost savings

on bill rate and usage

Customized SLAs

and process

Contingent

workforce spend

under management

One point of

contact

Direct cost savings


Customized SLAs

and process

Non-compliant

spend elimination

Total cost of

ownership savings

Total workforce

spend under

management

Complete

workforce visibility

Direct cost savings


Customized SLAs

and process

Non-compliant

spend elimination

Increased total cost

of ownership savings

Additional

productivity and

process savings

High degree of

value added services

Maturity stages

In order to move towards next in class we envision Johnson & Johnson

to move towards a managed service provider (MSP).

2005 state

Targeted state

2009 state

Industry Thought Leadership Current Business Model

MSP MSP

Temp LabourTemp Labour Contract LabourContract Labour

Vendor Tier 1 master vendor with first

right to fill orders

Rates Markup established with contract;

pay rates reviewed periodically

Tier

Strategy

If master vendor unable to fill the

position, the request goes to

secondary partners

Benefits - Control costs

- Standardization

- On-site management

Vendor Multi-vendor, tiered

Rates Market rate cards, including maximum

rates

Tier Strategy Broadcast to Tier 1; If unable to fill,

broadcasted to Tier 2

Benefits - Access to the best vendors by

service line and region

- Higher quality people at competitive

rates

VMS Technology

Tier 1 VendorsTier 1 Vendors ClinicalClinical EngineeringEngineering

ITIT FreelancersFreelancersTier 2 VendorsTier 2 Vendors

Tier 2 VendorsTier 2 Vendors

MV 2MV 2MV 1MV 1

Vendor Owned


1. Single common process

enabled by E Tool giving

traceability, visibility and

standardization and

reduced hiring cycle times

2. Vendor Neutral Managed

Service Provider (MSP) as

single point of contact for

hiring managers and suppliers

and acting as hirer for all

contractors

Implementation Framework

3. E Tool Technology

connecting hiring managers

approvers, VMS party,

suppliers and contractors

Phase 1 MSP/VMS Deployment

Hiring Mgr

Approver

VMS Team

Supplier

Worker

Create

Work Order

Create

Work Order

Approve

Work Order

Approve

Work Order

Issue

Work Order/

Auto create

WWID & JJEDS

Issue

Work Order/

Auto create

WWID & JJEDS

Accept

Work Order

Accept

Work Order

Activate

Work Order

Activate

Work Order

Register

in

software

Register

in

software

Approve

Time &

Expense

Approve

Time &

Expense

Submit

Time &

Expense

Submit

Time &

Expense

Monitor

Time &

Expense

Monitor

Time &

Expense

Consolidated

Invoice

Consolidated

Invoice

Invoice

Time &

Expense

Invoice

Time &

Expense

Interview

Candidates

Interview

Candidates

Shortlist

Candidates

Shortlist

Candidates

Approve

Job

Posting

In Ariba

Approve

Job

Posting

In Ariba

Distribute

Job

Posting

Distribute

Job

Posting

Distribute

Candidates

Distribute

Candidates

Create

Job

Posting

Create

Job

Posting

Create

Req in

Ariba

Create

Req in

Ariba

4. Preferred suppliers

competing on quality,

availability and cost based on a

framework of standardized job

profiles and rate cards with

ceiling rates

Phase 2

Competitive Sourcing

MSP PartnerMSP Partner

Tier 1

Supplier

Tier 2

Supplier

Tier 2

Supplier

Tier 1

Supplier

Tier 2

Supplier

Tier 1

Supplier

Business Partners


Single Point of Contact for all contract

labour activities

Full visibility of contractors and spend

Weekly timesheet approvals

Streamline AP and PO process

Standardised legal and payment terms

with all suppliers

Cost Savings Opportunities

Reduced effort around contractor selection

Onsite day-to-day operational support

Broader access to quality candidates

Tier 1Supplier

Tier 2Supplier

Tier 2Supplier

Tier 1Supplier

Tier 2Supplier

Tier 1Supplier

MSP on-site Team

Powered By Fieldglass

Managers

End-User Benefits


Challenges of the

Mature MSP-towards a value driven

approach-


Basic MSP Value DeliveryDirect (Supply Side)Greater leverage from supply base

Increase quality of candidates wider reach

Improving spend compliance & controlling costs

Market rate intelligence

Cost savings by using rate-cards

Indirect (Demand Side)

Frees time to focus on core operations

Reduce Admin Burden - Simplified process for

suppliers & hiring management

Reduce transaction & process costs

Process Improvement

Reduce cycle-time and effort

Improved on-& off boarding processes

Automated order/fulfillment

Automated time-keeping & payment

Contractors access system

Risk Management

Traceability of all transactions

Regulatory compliance

SOX compliance

Decreased Co-employment risks

Basic MSP Value Delivery


Challenges

Process

Standardize for cross-country leveraging

Technology development

Promotion

Face-2-face time with the customer

Marketing of the value

Performance

Metrics

Objectives

People

Staff the key objectives

Right-skilling

Knowledge management


Solutions with Fieldglass

Market Rate Intelligence Detailed visibility into spend for competitive benchmarking

Platform for Multi-Instance Operational Support Scaled with J&J expansion to accommodate multiple MSPs

and country specific nuances, etc Product Roadmap Influence

J&J Single sign-on (SSO) Portal User Interface Initiative

Consumer grade user interface to improve user adoption Reporting for Visibility

Insight into spend throughout the business


Consolidated View of Supplier Activities

Activity Matrix

Supplier KPIs

Program CycleTimes


Closing Takeaways

Fieldglass customer case study featuring a large, global healthcare company Access now:

resources.fieldglass.com/case_study_healthcare.html CWS Summit London, May 15-16

Chance at a complimentary pass, www.fieldglass.com/CWSLondon12

Fieldglass Panel: Mobilise Your Globalisation Efforts: Strategy, Leadership & Change Management, moderated by Fieldglass Co-Founder and CEO Jai Shekhawat and featuring customers, Bank of America, BP and Google. Wednesday 16 May, 13.40-14.40


Any Questions?


SAVE THE DATE!SAVE THE DATE!

15-16 May 2012

Lancaster Hotel, Londonwww.cwssummitwe.eu

2007-2011 The London Organising Committee of

the Olympic Games and Paralympic Games Limited



Next Buyer Webinar Europe:

MSP and RPO Contracts in Europe-Dealing with the Law-

30 May 2012

10:00 EST, 15:00 GMT, 16:00h CETSponsored by Randstad



Remember we want to know what you are

thinking..

Ton Mulders

Director Strategic Solutions, Europe

E: [email protected]

P: +31 (0) 651 385 435


THANK YOU!

sia eu webinar jnj case study18 apr 2012

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