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Blog

Identifying Contingent Worker Cost Savings Without Affecting Supplier Partners

Jun 8, 2016 1:52:09 PM

It is not uncommon for an organization to allocate up to 30% of its managed services spend to the contingent workforce. This is why procurement departments seeking deep discounts and tighter cost controls frequently target the suppliers supporting these programs. While procurement organizations continue to look for cost savings, the market has experienced a significant shift in recent years. Today’s environment exhibits lower unemployment and higher overall contingent worker usage. Additionally staffing suppliers are absorbing new costs such as those stemming from the Affordable Care Act and other increased statutory costs.

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Topics: Blog, MSP/VMS, Procurement Services, EOR Services

4 Ways to Improve Your Services Procurement Strategy With VMS

May 26, 2016 9:51:32 AM

Most companies today already enjoy well established procurement strategies yielding varying levels of results. However, there are a few successful themes that strong procurement organizations share which are tried and true. Building your procurement strategy around these four core themes is almost guaranteed to drive the results sought by those tasked with sourcing and engaging contingent workforce resources. Here are these time-honored four themes as they relate specifically to the utilization of Vendor Management System technologies.

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Topics: Blog, Procurement Services

The Relationship Between IC Compliance and Spend Management

May 24, 2016 11:13:15 AM

“Supply Chain Celebrity” Jason Busch has a great blog about all things supply chain related called, “Spend Matters”. They often have good information about strengthening indirect or services procurement. And the name of the site gets it right. Spend absolutely does matter. Spend management is the way companies control and optimize the money they spend on all procurement activities, with the goal of yielding savings to their organization while increasing quality. So why does spend management matter to the workforce management professional?

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Topics: Blog, Compliance Services, Procurement Services

Why Procurement Must Improve Awareness of Worker Classification

May 4, 2016 4:13:55 PM

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Experts predict the managed services market will nearly double over the next five years, reaching a whopping $193 billion by 2019! Now more than ever procurement and contingent workforce managers must begin to understand and prepare for the challenges facing proper management of managed services as an element of an overall workforce plan. By better understanding their contingent workforce and becoming a more significant part of the process, Procurement will gain greater access to the information they need to deliver high financial impact; contributing to their organizations’ bottom line. Part of this financial impact are the often unseen but no less important savings captured by cost avoidance. Particularly as it relates to worker classification challenges while using managed service providers to source and administer ICs.

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Topics: Blog, Compliance Services, Procurement Services

nextSource Anticipates VMSA Live: Florida 2016

Feb 3, 2016 2:49:35 PM

There’s nothing more effective in the pursuit of continuous professional innovation and improvement than convening with colleagues, customers and even competitors to exchange ideas, learn new strategies and soak oneself in an environment rich with thought leaders. It’s even more effective when there is the opportunity to soak oneself in the warm waters of the Atlantic in Fort Lauderdale, Florida. For this dual purpose (with an overwhelming emphasis on the first soaking), nextSource is very excited to be attending, exhibiting and participating in the VMSA Live: Florida 2016 beginning next week, from February 8th through the 11th.

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Topics: Blog, Procurement Services

How Worker Visibility and Control Enables Strategic Thinking For Spend Management

Jan 15, 2016 9:34:03 AM

Convincing the CFO or other finance stakeholders that a VMS and or MSP program is a necessity can be a challenge. This is because although a VMS/MSP delivers significant strategic benefits and operational efficiencies to HR and workforce management departments, the CFO has only one bottom line requirement – the bottom line. Rather than trying to convince Finance of the utility of the solution, it may be better to tie the benefits a VMS/MSP program delivers to a strong spend management function. In short, workforce managers know visibility and control leads to efficient spend management, but should frame the discussion strictly in terms of spend management when seeking approval for capital expenditure. Here’s how to build your business case and secure approval.

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Topics: Blog, Procurement Services

When Should You Consider a Contract Lifecycle Management Solution?

Jan 6, 2016 10:45:00 AM

A workforce management program can be assembled and rolled out in numerous ways - VMS only, MSP only, MSP/VMS together, etc. The different pieces can be implemented at different times. An organization might begin with a VMS tool and after a year or two, add MSP services and vice-versa. However, with the rising popularity of SOW contractors as a labor category, there is growing interest in contract lifecycle management (CLM) solutions. CLM solutions are far more adept at managing complex SOW contracts from inception to completion, but getting capital approval for yet another tech implementation (as always) is a heavy lift. So it makes sense to weigh whether or not your operations are truly in need of CLM or if your existing array of solutions (MSP/VMS) can accommodate your SOW needs adequately enough.

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Topics: Blog, Procurement Services

MSPs Becoming SMPs (Spend Management Programs)

Dec 17, 2015 10:36:02 AM

The traditional managed service program (MSP) for services procurement is evolving away from being a method for managing temporary labor alone. Today’s leading edge MSPs are about managing multiple, different types of services spend. The services as well as the technologies required to successfully manage the emerging tsunami of SOW-based spend are considerably different than those that have up until recently been required to manage temporary labor alone as a spend category. Here’s some perspective on what’s changing and why.

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Topics: Blog, MSP/VMS, Procurement Services

The Skinny on Scaling Services For Procurement Operations

Dec 10, 2015 10:50:36 AM

When devising a services procurement strategy it can be difficult to predict the volume and scope of what may be needed to properly achieve your strategic workforce management goals. One best practice for devising and implementing a successful service procurement program includes focus on scalability in the design. Scalability is important if the operation intends to extend procurement reach across the entire organization. Properly executed, a scalable program brings more spend under strategic category management for better cost efficiencies. It also provides better accountability and auditability by extending invoice, payment, and contract controls across a greater number of transactions and overall spend. How best to apply a scalable strategy to your efforts depends on how your broader procurement organization is structured.

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Topics: Blog, Procurement Services

Procurement BPO and the SOW MSP - What’s the Difference?

Dec 9, 2015 2:08:30 PM

The rapid pace of innovation in workforce management – and the proliferation of software, services and other solutions designed to meet workforce management needs – has resulted in some understandable confusion about terms and terminology. Different authorities post differing definitions of actions and activities and there is sometimes a disconnect between two workforce management professionals who think they’re talking about the same thing. This piece will tackle the difference between a Procurement BPO and an SOW Managed Services Program (MSP) which are two activities sometimes mistaken one for the other.

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Topics: Blog, Procurement Services