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The Point

"The Point" is written by BMP Editor Kelly Barner as well as a diverse group of guest contributors.

The September ISM-New York Report on Business: Help Wanted!

The August ISM-New York Report on Business was released on October 2nd at 9:45am Eastern and is available for download here.

Like the other ISM reports, the ISM-New York Report on Business is compiled as diffusion indices –we add the percent of positive responses to one-half of those responding that conditions remained the same.  A reading of 50.0 means no change from the prior month, greater than 50.0 indicates a faster pace of activity, and less than 50.0 a slower rate. Each month is not so much a reading of the current level of activity as it is an indication of growth or contraction from the previous month.

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The August ISM-New York Report on Business: Nowhere to go but down... except up

The August ISM-New York Report on Business was released on September 5th at 9:45am Eastern and is available for download here.

Like the other ISM reports, the ISM-New York Report on Business is compiled as diffusion indices –we add the percent of positive responses to one-half of those responding that conditions remained the same.  A reading of 50.0 means no change from the prior month, greater than 50.0 indicates a faster pace of activity, and less than 50.0 a slower rate. Each month is not so much a reading of the current level of activity as it is an indication of growth or contraction from the previous month.

A note specific to the New York Metro area, where all of this report’s respondants are located: they are predominantly in professional services industries. It is important to keep this in mind when we think about the context for the trends being reported by these particular purchasing managers.

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Survey Chair Commentary: The July ISM-New York Report on Business

The July ISM-New York Report on Business was released on August 2nd at 9:45am Eastern and is available for download here.

Like the other ISM reports, the ISM-New York Report on Business is compiled as diffusion indices –we add the percent of positive responses to one-half of those responding that conditions remained the same.  A reading of 50.0 means no change from the prior month, greater than 50.0 indicates a faster pace of activity, and less than 50.0 a slower rate. Each month is not so much a reading of the current level of activity as it is an indication of growth or contraction from the previous month.

A note specific to the New York Metro area, where all of this report’s respondants are located: they are predominantly in professional services industries. It is important to keep this in mind when we think about the context for the trends being reported by these particular purchasing managers.

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5 Ways a Purely Vendor-Neutral, Integrated Contingent Workforce Model Helps Companies Get Peak Value

Companies today are spending significant amounts of money on contingent workers, with businesses allocating hundreds of billions of dollars for these engagements. As a result, the C-suite is increasingly interested in whether they’re getting peak value from their contingent workforce program. And they are right to be concerned - inefficient management, laggard technologies, and disaggregated solutions can thwart efforts to maximize value.

A purely vendor-neutral, integrated MSP and VMS solution provides an innovative way for companies to manage their contingent workforce. Pure vendor neutrality means the MSP or VMS has no affiliation with a staffing agency. Because no one staffing firm is unfairly prioritized, this creates a highly competitive playing field for the staffing firms sourcing talent for organizations that demand a higher caliber of talent.

Since suppliers are focused on providing clients with the best value — which may not be the case when the MSP can compete to fill requisitions — businesses receive the highest-performing talent at the most competitive cost.

Additionally, with an integrated model, the technology and human aspects are intertwined, making it easier for companies to achieve optimal results. Here are five key ways this approach will help businesses get peak value from their contingent workforce program.

 

1) Risk Management

Worker misclassification enforcement has never been greater than it is today. Between 2011 and 2015, the U.S. federal budget allocated $113 million to detecting and deterring worker misclassification issues. Continuing this trend, the 2017 budget “... expands funding for efforts to ensure that workers receive back wages they are owed and cracks down on the illegal misclassification of some employees as independent contractors …”

Given this uptick in enforcement, having an MSP team well-versed in the complexities of managing worker classification and co-employment risk management can make a huge difference in eliminating issues. To further enhance the MSP team’s efforts in managing business validation, co-employment risk, third-party payrolling of self-sourced contractors and more, organizations need to have access to an integrated, best-in-class VMS platform.

With an integrated platform, the MSP and VMS work in lockstep throughout the entire contingent workforce management process to ensure proper worker classification, onboarding, and worker management. And by pulling all workforce spend into one platform, clients reduce the risk of rogue managers spending randomly and managing contingent workers in an uncontrolled environment.

In addition, businesses with contingent workforces typically have hundreds if not thousands of workers utilizing proprietary corporate networks and systems while accessing their ideas and protocols. A proven MSP team helps ensure the proper nondisclosure agreements are in place to protect a company’s intellectual property.

 

2) Cost Savings

An integrated solution helps companies generate cost savings in a myriad of ways.

Consolidated invoicing through a VMS reduces instances of billing error, while the aforementioned MSP risk mitigation helps ensure clients avoid costly litigation and misclassification penalties.

Self-sourcing talent is another key way for clients to generate significant hard dollar savings in a large contingent workforce program — especially in more mature programs. A leading-edge joint MSP/VMS offering makes it easy. An expert MSP team can offer a breadth of experience across different industry segments, while an integrated, top-tier VMS will provide self-sourcing capabilities that give businesses the opportunity to avoid traditional supplier-sourced mark-ups and generate cost savings.

In my experience, a company that places 10 self-sourced workers over the course of a year will save, on average, a quarter of a million dollars.

 

3) Process Efficiency

A fully integrated MSP and VMS solution enables organizations to extract as much value as possible from the latter. With a joint offering, the on-site MSP team of recruitment and employment experts oversees the automation of contingent workforce management processes via the VMS. Users can then tap into the power of automation to reduce the average requisition process from weeks to days. Better still, users can do so knowing they’re getting superior talent at a lower price while managing risk. This efficiency extends through the entire contingent workforce management process, as it enables users to handle sourcing, onboarding, time/project approvals, e-invoicing, offboarding and more in a single application.

This effectiveness provides immediate relief across the entire organization. Human resources, finance, procurement, IT and legal have one system they can go into and extract relevant data to help them work smarter in their area of expertise. In addition, a more sophisticated VMS will be built on open architecture, offer integrations with every major ERP, HRIS and PPM, and have a framework in place for quickly creating custom integrations. As a result, integrations with security, IT, facilities and any other tech systems are simple to implement.

Since workplace efficiency today often involves mobile access, the best VMS solutions enable users to manage the full contingent workforce lifecycle from anywhere they are, powering total freedom of mobility and a seamless omnichannel experience. Top-tier platforms will also bubble up the new action items required to manage a user’s contingent workforce. This helps managers avoid overlooking critical tasks and get more done with fewer swipes and taps.

 

4) Complete Workforce Visibility

Capturing and harnessing data across each stage in the worker lifecycle is critical, and properly leveraging true business intelligence requires a combination of cutting-edge technology and human expertise. A VMS with real-time visibility into a myriad of dashboards provides executives and other power users with invaluable metrics around worker population, usage, billing, performance and more. With historical data pulled through a single system and presented in a visually friendly, intuitive fashion, clients can make smarter workforce decisions, anticipating and planning for future usage.

Another area that’s vital to managers is Total Talent Management reporting. With the most sophisticated VMS providers, clients gain total visibility into both contingent AND full-time resources across the entire organization. By importing specific types of ‘sanitized’ full-time data and viewing it right next to contingent data, managers can determine the best way to engage resources across all categories from a cost, quality and risk perspective.

With a leading-edge joint MSP/VMS solution, users with specific needs can work with the MSP team to create any executive dashboard desired. These customized dashboards can visually reflect the data points requested and enable the ability to interact with this data in a seemingly endless number of ways.

 

5) Talent Quality

In today’s business world there’s a war for talent. Taking a vendor-neutral approach through an integrated model is helping companies win every day.

Within a leading-edge VMS, built-in tools deliver additional supplier management assistance. For example, supplier scorecarding offers a mechanism for ranking suppliers, which not only provides valuable feedback but can also help inform future sourcing decisions. In addition, clients can work with their MSP to create a suppler-tiering system, so that new job requisitions are initially routed to first-level suppliers that have historically delivered superior talent.

 

Conclusion

Superior talent quality, cost efficiency, greater agility, and pure simplicity from a combined solution start at implementation and increase over time. These are wins that cannot be achieved when an MSP and VMS are used separately. A truly integrated and purely vendor-neutral provider offers a one-stop shop for users and enables businesses to realize peak value from their contingent workforce program.

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Fleet: Key Considerations

Have you ever wondered what other company’s fleets look like? How other companies source their fleet units, parts, and services? What information is needed to begin? The first thing to know, is that no two fleet profiles are the same. The second thing to understand, is that there is no right place to start; it all depends on your corporate procurement goals. Are you trying to maximize upfront funds? Is your goal to streamline services and optimize vehicle performance? Are you attempting to marry two fleets after a merger or acquisition? There are endless scenarios that will benefit from strategic procurement thinking.

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Contingent Workforce Management: Advantages of an Integrated Managed Services Program and Vendor Management Software Model

Organizations that are not leveraging a managed service provider (MSP) and vendor management system (VMS) may be paying too much for contingent talent and are at risk of noncompliance with various labor and benefit laws. They are also likely to have challenges involving time to source quality talent.

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Making an Informed Decision about Contingent Workforce Management Advice

Non-employee talent is getting more and more attention in the executive suite, as contractors, freelancers, and other knowledge-based contingent workers become increasingly important in achieving company goals. However, when management attempts to align its current contingent labor management program with corporate objectives, many companies find they are unable to answer the most basic questions about the effectiveness of their current practices.

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Book Review: Confessions of a Professional Buyer

“Buyers have a privileged position within companies and are exposed to innovative ideas from suppliers often developing their own sense of curiosity. Although not all buyers have realized it yet, they are expected to contribute to the innovation process.” (p. 25)

 

Confessions of a Professional Buyer: The Secrets About Selling & Purchasing Services, by Hubert Lachance, is something like a survival guide for suppliers dealing with procurement – and vice versa. Lachance has over a decade’s worth of experience managing indirect spend for a multi-national CPG company, and he applies that experience to help all buyers and sellers work together more productively.

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Webinar Notes: Procurement Technology Bill of Rights: Security and Freedom in B2B Data Management

This week’s webinar notes are from a January 14th webinar presented by Spend Matters’ Pierre Mitchell and KPMG’s Mani Mangalathumadam and sponsored by Hubwoo. The event can be viewed on demand here.

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Getting it JUST right

There is a wonderful children’s story, Goldilocks and the Three Bears. If it has been a while for you, it is about a young girl who stumbles into the bear’s cottage and tries out the porridge, the chairs and the beds.

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Do it right the first time, every time

Automobiles are a necessary evil. Whenever we have to have our car repaired, it can be quite frustrating. There is such a relief if something is fixed on time and right – the first time.

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More tips to find a Procurement Services Provider.

Today’s eSourcing Wiki-Wednesday topic is How to Find a Good PSP.

When we have had to hire someone to do work on our house, we got references, interviewed multiple contractors and of course reviewed their proposals. While it is not just about the money, that is clearly a key factor. I am sure that drill sounds familiar to many of you.

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Services Demand Management: Why?

This week’s Wiki-Wednesday article, ‘Shape Demand… For Services’, looks at the challenges procurement organizations face as they work to address internal demand for services. As an increasing number of non-core functions are handled by third parties, it is important to consider the management of this spend as the outsourced category model it is.

 

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