The SIG Webinar will begin shortly Once the
The SIG Webinar will begin shortly. Once the webinar begins, the sound will come from your computer speakers. In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen and plan to join us if you are in one of these cities this fall. NETWORKING EVENTS GLOBAL SUMMITS Oct 14 -16 – Denver SYMPOSIUMS Oct 29 – New York Nov 12 – San Francisco Bay Area REGIONAL ROUNDTABLES Nov 14 – Orange County For more information and to register for all SIG events: www. sig. org
Become a SIG Champion and earn points in the process by… • Attending an event • Dialing into a webinar • Speaking at a Summit • Submitting content to our blog or SRC • Referring a new member • And more For more information and to register for all SIG events: www. sig. org
special member benefits 6 months of free buyside access (a $2, 500 value) to the Vendor Evaluation & Assessment Tool (NEAT) 2 free Market Intelligence Reports for Facilities Management and Application Software (a $10, 000 value) supplemented with quarterly updates and a 20% discount on any additional report subscriptions Complimentary due diligence report and analysis on a company of your choice for a deep look at the potential risks you can uncover within your supply chain For more information, go to: http: //sig. org/provider-benefits
RECENT POSTINGS The SIG Career Network is bursting with opportunities. New jobs are posted daily by some of the best known global companies in the world for those seeking careers in sourcing, outsourcing, procurement and related functions. NEW to the Career Network! • Adobe Systems – posted September 23: • Marketing Category Manager • Lucas. Group – posted September 17: • Director of Sourcing • ANN INC. – posted September 16: • Procurement Analyst • Staples – posted September 15: • Senior Sourcing Manager – Marketing • Sourcing Manager - Prof. Services • Equifax – posted September 15: • Director of Strategic Sourcing • Ross Stores, Inc. – posted September 11: • Manager, Strategic Sourcing (TEMP) • Merrill Corporation – posted September 11: • Strategic Sourcing Specialist • Travelers Insurance – posted September 9: • Senior Sourcing Analyst • Staples – posted September 8: • Sr. Program Manager, IT Outsourcing For more information go to: www. sig/career-center. org
Upcoming Free SIG Webinars: September 30, 2014 Vendor Management Systems as the Foundation of all Non-Employee Sourcing Strategies Presented by IQNavigator October 2, 2014 Solution Deep Dive: How to Take Time and Expense out of Invoice Processing Presented by Canon Business Process Services New Topic Each Week 2: 00 pm Eastern (11: 00 am Pacific) October 23, 2014 Source to Settle: Why it is Time to Connect the Last Mile Presented by SAP/Ariba Register at www. sig. org For more information and to register for all SIG events: www. sig. org
SIG Town Hall Teleconferences bring a small group of buy-side ONLY attendees together for a facilitated discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded. Calendar of Town Hall Teleconferences Taking place at 1: 00 pm Eastern on the following dates: January 8 February 12 March 12 April 9 May 14 June 11 July 9 August 13 September 10 October 8 Upcoming Town Hall Teleconference: October 8 th Supplier Diversity & Demanding an Inclusive Workforce from Professional Services Suppliers Presented by: Debbie Manos Mc. Henry, Chief Sourcing Officer Marlon Moore, Supplier Diversity Manager Huntington National Bank For more information and to register for all SIG events: www. sig. org
SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users Symposiums: Regional Roundtables: Minneapolis – Feb 6 Toronto, Canada – Jun 9 Columbus – Sep 24 New York– Oct 29 San Francisco Bay Area – Nov 12 Hartford – Mar 12 Seattle – Apr 30 Chicago – Jun 9 Orange County – Nov 14 For more information and to register for all SIG events: www. sig. org
www. sig. org/summits. php A SIG Global Summit is… • • Non-commercialized Almost 70% buy-side Global brands 3 days of networking • CPO Roundtables • Multiple keynote sessions • Nearly 50 breakout sessions 69% at director level or above, of which 43% are VP/C-level
People. Fluent Moving Your Contingent Workforce Program from Tactical to Strategic Presented by John Moore, CCWP John. moore@peoplefluent. com www. peoplefluent. com © People. Fluent 2014
Today’s Speaker • John Moore, CCWP • Senior Solutions Consultant • Specialist in contingent management processes and tools • Certified Contingent Workforce Professional (CCWP) © 2014 People. Fluent
About People. Fluent • • • Leader Human Capital Management In over 5, 200 organizations 214 countries and territories 80% of the Fortune 100 170 VMS customers $7 B managed spend © 2014 People. Fluent
Agenda • • • CW program maturity Diagnosing where you are Strategies to address issues Building a program roadmap Identifying cost savings © 2014 People. Fluent
CW Program Maturity Ad hoc Manual No process No SLAs Too many suppliers Not enough suppliers Not repeatable Tactical Automated Transactional Process Focus on efficiency Supplier rationalization Focus on cost Focus on hourly workers Managed Integrated High use of metrics Focus on compliance Focus on quality Suppliers are rotated Program SLAs Services Procurement* Strategic Embedded Business Focus Enterprise SLAs Analytics Total Visibility Total Workforce QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE © 2014 People. Fluent
CW Program Maturity Paths WORKFORCE MANAGEMENT Strategic EXPANSION SOW Managed INTEGRATION Tactical Ad hoc VMS IMPLEMENTATION TIME © 2014 People. Fluent
CW Program Management • Skillset • • Technology Process Finance Staffing industry Market prices Procurement Contracts Excellent people skills © 2014 People. Fluent
Diagnosing Your Program • Identify the issues • You might already know some of them • Survey • • Executives Hiring managers Suppliers Functional areas QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE © 2014 People. Fluent
Diagnosing Your Program • First, look outside of the technology • Organizational structure • Lack of support • • Executives Business managers Hiring managers Functional areas • Entrenched suppliers QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE © 2014 People. Fluent
Diagnosing Your Program Create an Issue Log Issue Cause Possible Solutions Candidate Quality Suppliers Scorecards Rationalization Candidate Quality Non-specific requisitions Detailed templates Hiring mangers don’t use the VMS Too difficult Training Hiring mangers don’t use the VMS Takes too long Workflow Hiring mangers don’t use the VMS No internal policy Executive, management support © 2014 People. Fluent
Program Workflow Offboard & Evaluate • Facilities & Logistics • Notifications • Worker Evaluation Billing and Invoice • Consolidated invoice • Adjustments • Financial Integrations Payment Management • Time, Expense • Approvals/ notifications © 2014 People. Fluent Requisition Management • Templates • Workflow • Approval Source • Vendor Distribution • Rate card Analytics Select • Qualification • Candidate Ranking • Interview Scheduling • DNR / Duplicate Screening Compliance/Onboarding • Facilities & Logistics • Compliance Items • Electronic Notifications Engage • Cost Allocations • Tenure Control • Budget Management
Diagnosing Issues Quality of Candidates Supplier Training Scorecards / SLAs Rationalization © 2014 People. Fluent Requisition Training the HMs Screening Who’s responsible? Adjust the process Build templates
Diagnosing Issues Efficiency System Workflow Notifications A Process B Exceptions End-to-end Common Training © 2014 People. Fluent Integrations Hiring managers Suppliers
Diagnosing Issues Compliance System Notifications Reporting Workflow stops? Process Policies Who’s responsible? Auditing Training © 2014 People. Fluent Functional areas Suppliers
Diagnosing Issues Cost Savings System Rate card Markups Market rates Supplier Scorecards Contracts Comparison rate data Process © 2014 People. Fluent Negotiation Exceptions Pre-identified
Cost Savings Areas Category Detail Benchmark rate cost savings Compares a defined benchmark rate / mark-up vs. the actual engaged rate / mark-up over a defined period of time to show the reduction Negotiated Savings • • • © 2014 People. Fluent Requisition-by-requisition negotiated rate savings Conversion savings / discounts (i. e. , right hire savings) Volume discounts based on ascending spend thresholds Prompt pay / early pay discounts Tenure discounts Payrolling savings Renegotiations Rebates to client Reduced OT rates Decreased per diems
Cost Savings Areas Category Detail Hard Cost Savings • • • Metrics • Track cost savings (clearly defined and standardized) • Improve processes (measurable cost reductions) © 2014 People. Fluent Tangible bottom line reductions Saved money from budgets Target reduced supplier count per category and region Capture rogue spend due to lack of global visibility Automate financial approvals / provide governance Rationalize job descriptions to establish rate cards • Total cost management • Pay rate band usage • Combination mark-up and bill rates • True market comparison • Normalize rates based on third party benchmarking • Introduce competition though supplier neutrality / manage bid process
Cost Savings Areas Category Detail Reduced SG&A expenses • Operational efficiencies improved (decreased costs to manage contingent labor) Decreased cost of ownership • Shared Managed Services / VMS allow managers to focus on your business • Consolidated invoice © 2014 People. Fluent
Soft Cost Savings Areas Category Detail Mitigate Risk • Mitigate risk through co-employment management • Reduce financial exposure due to worker misclassification; manage on a per country basis • Track licensing and certifications for expirations • Establish tenure rules across various worker types and in accordance with local regulations • Reduce invoicing / payment errors • Periodic audits to identify risks and opportunities for corrective action Administrative Cost • Invoice processing Savings • PO processing • Payment processing • Time savings (e. g. , invoice processing time) • AP invoice audit savings based on the avoidance or credits on overpayments to supplier © 2014 People. Fluent
Soft Cost Savings Areas Category Detail Process Improvements • • • Soft Cost Avoidance Savings • Reduce cycle time to fill • Outsource process (invoice / payment, contracts admin, onboarding) to free procurement, AP resources • MSP or SMS governance programs reduce HR, legal and procurement resources • Comprehensive reporting to drive continuous program improvement © 2014 People. Fluent Cycle time improvements Candidate quality improvements Reduced reporting administration Consolidated invoice and payment process Elimination of invoice errors
Diagnosing Issues Other Program Areas Adoption Training Management awareness Communication Change Management Executive support Stakeholder committee Entrenched suppliers © 2014 People. Fluent
The Strategic Roadmap • A roadmap is a process to aid in integrating business and technology • A dynamic plan • It describes where you want to be and how you are going to get there © 2014 People. Fluent
Creating Your Roadmap • Characteristics • • • Goals Timelines Actionable steps Interdependencies Alternate routes © 2014 People. Fluent
Creating Your Roadmap • Goals need to be • • Specific Measurable Realistic Time-bound • “Expand VMS to capture 90 percent of Admin category within corporate by end of year. ” © 2014 People. Fluent
Creating Your Roadmap • How to Begin • • • High-level sponsor with a vision Leadership support Identification of stakeholders Analyze gaps Set goals Build a plan © 2014 People. Fluent
Creating Your Roadmap • Identify who you need • • IT Procurement Human Resources Legal Business managers Functional managers Executives VMS/MSP/SMS (optional) © 2014 People. Fluent IT Executive Procurement CW PM Functional Managers Business Leaders HR Legal
Creating Your Roadmap Discovery Business Objectives Governance Recommendations Functional Needs Business Processes © 2014 People. Fluent Organizational Execution Prioritize Functional Targets Improvements Drivers Initiatives Communication Set Timelines Process Guidelines Technology Create Projects
Creating Your Roadmap © 2014 People. Fluent
Begin Your Journey • Put the issues, solutions and roadmap into a business case • Present to the stakeholder committee • Work the roadmap • Rebrand re-launch • Start the road show © 2014 People. Fluent
Thank You Contact Me John Moore, CCWP John. moore@peoplefluent. com © 2014 People. Fluent
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