Get the Most Out of Your Flexible Workforce with Services Procurement
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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.
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Get the Most Out of Your Flexible Workforce with Services Procurement
- 1. HR.com Webcast Getting the Most Out of Your Flexible Workforce with Services Procurement Presenter: Amy Woodham, Product Manager – Beeline July 25, 2012
- 2. #ServicesProcurement Social Media • Follow and contribute to the webcast #ServicesProcurement Beeline.com Confidential & Proprietary August 15, 2012 2
- 3. #ServicesProcurement Agenda • Where does Services Procurement Fit? • Defining Services Procurement • Common Terminology • Current Trends • Market Problems • Organizational Benefits • Key Considerations Beeline.com Confidential & Proprietary August 15, 2012 3
- 4. Where does Services Procurement fit?
- 5. #ServicesProcurement Where does Services Procurement fit? Beeline.com Confidential & Proprietary August 15, 2012 5
- 6. #ServicesProcurement Where does Services Procurement fit? • What is the difference? Professional Temporary Services Services Outsourced Staffing Staffing Procurement Procurement Workers • Resource augments • Commoditized skills • Specialized skills not • Specialized skills not • Longer duration contracts current staff (for example, • Task oriented/lower value inherent to current staff inherent to current staff that don’t change often PM/IT resource) • Adds capacity/increases • Want to develop • Want to develop • Not core business function • High value added flexibility knowledge knowledge • Supplier manages to • Adds capacity / increases • Highly repeatable hiring • Typically brings expertise • Typically brings expertise internal flexibility and scalability process measured on delivery measured on delivery requirements/SLAs • Immediate cost savings • Compensated hourly • Compensated based on • Compensated based on • Open-ended employment opportunity • Managed by Organization competitive bid of competitive bid of relations with the supplier • Typical implementation • Supplier executes per deliverables or SOW deliverables or SOW • 1 to many resources focuses on IT Contractors internal requirements outcome outcome first due to large volume • Individual resources • Complex contracts • Complex contracts • Repeatable hiring process deliverables deliverables • Compensated hourly, • Milestone-based work with • Milestone-based work with usually to a rate card awards/penalties awards/penalties • Managed by Organization associated one to many associated one to many • Individual resources resources resources Beeline.com Confidential & Proprietary August 15, 2012 6
- 8. #ServicesProcurement 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) Beeline.com Confidential & Proprietary August 15, 2012 8
- 9. #ServicesProcurement Poll • Is your Services Procurement process centralized, decentralized, I have no idea? Beeline.com Confidential & Proprietary August 15, 2012 9
- 11. #ServicesProcurement Common Terminology CompetitiveBid Time&Materials RFx SOW Milestone/Deliverable Project FixedBid Beeline.com Confidential & Proprietary August 15, 2012 11
- 12. Current Trends
- 13. #ServicesProcurement Current Trends 95% looking for Services Procurement 14% organizations claiming SOW visibility Source: Aberdeen Beeline.com Confidential & Proprietary August 15, 2012 13
- 14. #ServicesProcurement Current Trends – Growth Outlook Source: Staffing Industry Analysts Beeline.com Confidential & Proprietary August 15, 2012 14
- 15. #ServicesProcurement Current Trends – SOW based spend gaining visibility 65-78% of companies non full-time employee labor spend falls into SOW based engagements Beeline.com Confidential & Proprietary August 15, 2012 15
- 16. Market Problems
- 17. #ServicesProcurement Market Problems – What we’re hearing Beeline.com Confidential & Proprietary August 15, 2012 17
- 18. #ServicesProcurement Market Problems – Who needs it? • Fortune 500 • Global 1000 • You? Beeline.com Confidential & Proprietary August 15, 2012 18
- 19. #ServicesProcurement 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? Beeline.com Confidential & Proprietary August 15, 2012 19
- 21. #ServicesProcurement Poll • What is your #1 driver to implement a # Services Procurement solution? – – – Visibility Compliance Cost Savings – Quality – Operational Efficiency Beeline.com Confidential & Proprietary August 15, 2012 21
- 22. #ServicesProcurement Organizational Benefits • #1 reason to implement a Services Procurement solution is… VISIBILITY Beeline.com Confidential & Proprietary August 15, 2012 22
- 23. #ServicesProcurement Organizational Benefits • Additional reasons to implement a Services Procurement solution is… COMPLIANCE Beeline.com Confidential & Proprietary August 15, 2012 23
- 24. #ServicesProcurement Organizational Benefits • Additional reasons to implement a Services Procurement solution is… OPERATIONAL EFFIENCY Beeline.com Confidential & Proprietary August 15, 2012 24
- 25. #ServicesProcurement Organizational Benefits • Additional reasons to implement a Services Procurement solution is… COST SAVINGS Beeline.com Confidential & Proprietary August 15, 2012 25
- 26. #ServicesProcurement Organizational Benefits • Additional reasons to implement a Services Procurement solution is… QUALITY Beeline.com Confidential & Proprietary August 15, 2012 26
- 28. #ServicesProcurement Key Considerations • VMS providers, there are a lot of different options Beeline.com Confidential & Proprietary August 15, 2012 28
- 29. #ServicesProcurement 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 Beeline.com Confidential & Proprietary August 15, 2012 29
- 30. Summary
- 31. #ServicesProcurement Summary • Where does Services Procurement Fit? • Defining Services Procurement • Common Terminology • Current Trends • Market Problems • Organizational Benefits • Key Considerations Beeline.com Confidential & Proprietary August 15, 2012 31
- 32. #ServicesProcurement Summary – Download our latest whitepaper • http://www.beeline.com/thought-leadership/whitepapers/services-procurement/ Beeline.com Confidential & Proprietary August 15, 2012 32
- 33. #ServicesProcurement 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” Beeline.com Confidential & Proprietary August 15, 2012 33
- 34. #ServicesProcurement Questions Beeline.com Confidential & Proprietary August 15, 2012 34