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Blog

Breakdown of an Independent Contractor Rate Calculation

Jul 20, 2016 4:42:54 PM

Procurement and supply chain professionals often develop a fairly accurate understanding of their vendors’ costs because often they are buying the same or similar products from competing providers. When it comes to contingent labor purchasing, Procurement pros rely on VMS systems to provide that cost visibility into the respective pay rates of a organization’s staff augmentation contractors (as we explained in detail in this recent post). With this information on hand, organizations can regulate mark-ups within acceptable budgetary restrictions while still allowing for their staffing partners to make profit above their operating costs. However, understanding the costs of doing business incurred by ICs is a much more variable proposition. This piece will examine how a Procurement pro can arrive at educated estimates of their ICs costs so they may strike mutually beneficial agreements with ICs too.

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Topics: Blog, Procurement Services

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