Innovation Track Programme Models for Contingent Workforce Management

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1 WEDNESDAY 4:35 5:35 PM GARDENIA Innovation Track Programme Models for Contingent Workforce Management Moderator: Kersten Buck, Director, Strategic Solutions, Staffing Industry Analysts Panellists: Sebastian Chua, Head of Procurement, Health Promotion Board Anirudh Sundareshwar, Head of Vendor Management, BNP Paribas Ronnie Tang Tai Wai, Regional Executive, Supply Chain Management, Computer Sciences Corporation 2015 Crain Communications Inc. All rights reserved July 2015 Shangri La Hotel, Singapore

2 Managed Service Programme Models Coordinate the management of your contingent workforce and suppliers to support operations across four key dimensions: 1. Quality 2. Efficiency 3. Cost 4. Risk Management with internal employees or outsourced to a third party provider called an MSP Programme management may be located on or off site (or both). MSPs are typically enabled with software (e.g. ATS, VMS, ERP, etc.).

3 3 Common Programme Models Master supplier focused on recruiting services Vendor neutral, competitive bidding focused on supply chain management Hybrid focus on recruiting services and supply chain management

4 Sourcing Model Attributes Rate elasticity how rates vary per requisition/order Competitiveness number of suppliers and how requisitions are distributed Vendor integration degree to which external resources are used to administer the program

5 Sourcing Model Decisions Different sourcing model for different skills e.g. master supplier for clerical Different sourcing model for different locations e.g. master supplier for Singapore Situational flexibility e.g. urgent or bulk staffing Hybrid teams e.g. third party MSP and internal recruiters

6 Master Supplier Assumes overall responsibility for providing temporary workers Requisitions go to the master supplier to be filled If not filled within x days, distributed to sub tier suppliers Typically includes: On site programme office Rate intelligence Invoicing & accounting Electronic requisitions & time Back office support On/off boarding Headcount reporting Budget accrual reporting Sub tier supplier mgmt. Recruitment services

7 Pros & Cons of Master Supplier + Accountability from supplier Predictable cost Leveraged volume to lower cost Stable mark up rates Simplified billing Vested interest in mutual success Lack of competition Gaps in skills and geographic coverage impacts: quality/efficiency Limited visibility of sub contracts Increased risks End user/hiring manager adoption issues Understanding of recruiting needs

8 Vendor neutral All staffing suppliers are given opportunity to fill each requisition at the same time Supplier category is determined during contract negotiation e.g. IT skill sets only Each requisition is competitively bid for skill match and rate

9 Pros & Cons of Vendor neutral Highly competitive + Relies on mature processes Competitive bidding reflects market rates Enabled by VMS software Simplified billing Multiple checks and balances Fair treatment of suppliers Without active rate management, costs can increase over time Less supplier knowledge of end user could impact quality Increased supplier competition could limit willingness to provide best candidates Less useful for lower skilled positions

10 Hybrid Blending different sourcing models to manage a programme e.g. by skill or geography Typically, includes elements of a vendorneutral and a master supplier program e.g. master supplier for light industrial positions and vendor neutral model across for IT positions to be competitively bid

11 Competitive bidding reflects market rates Neutrality reduces dependency on one supplier, while master supplier gains understanding of recruiting needs Enabled by VMS software Simplified billing Supports the needs of varied requirements More effective for global needs with regional variations in law and culture Pros & Cons of Hybrid + Requires a more complex support team of recruiters and MSP skill sets Balance of master supplier fills vs neutral fills may impact cost and quality Suppliers skeptical of neutrality between master supplier candidates vs their own Competitive bidding more challenging with master supplier included

12 Global Programme Management Model Complexities Best Practices Single VMS platform Centralized governance with regional independence related to sourcing and operational models

13 WEDNESDAY 4:35 5:35 PM GARDENIA Innovation Track Programme Models for Contingent Workforce Management Moderator: Kersten Buck, Director, Strategic Solutions, Staffing Industry Analysts Panellists: Sebastian Chua, Head of Procurement, Health Promotion Board Anirudh Sundareshwar, Head of Vendor Management, BNP Paribas Ronnie Tang Tai Wai, Regional Executive, Supply Chain Management, Computer Sciences Corporation 2015 Crain Communications Inc. All rights reserved July 2015 Shangri La Hotel, Singapore

14 DIGITAL SURVEYS Don t forget to provide feedback Programme Models for Contingent Workforce Management Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit Crain Communications Inc. All rights reserved July 2015 Shangri La Hotel, Singapore

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