1. Extending the Value of e-Procurement to Contingency Staffing
Elaine Taylor
Principal
Contingency Workforce
Management Solutions

2. Definitions Contingent Worker = Clerical/admin temps through agencies
Professional-level contractors through agencies
Independent contractors
“misclassification of employees”

3. Contingent Workforce Vendor Programs
Manage cost and leverage spend
Mitigate potential corporate liabilities
Insure the best possible customer service

4. Today’s 3 topics
Why Contingent Workforce Management is important to your company
Elements of a successful Contingent Workforce Vendor Program
Case study

5. Why it’s important $63 billion industry
21,000 staffing agencies
numerous other purveyors of products and services
$95 million – class-action suit against Microsoft
$3 - $4 billion annually – uncollected tax revenues

6. 4 Steps to Success Design a contingent workforce program
Select vendors
Select e-procurement tool
Measure results and modify as necessary

7. Step 1: Program Design Define goals: Analyze state of the union
Ensure compliance with all applicable laws and regulations
Control costs and leverage spend
Identify and support best business practices
Deliver consistently high-quality service to your end user
Analyze state of the union

8. Step 1: Program Design, (cont’d)
Identify stakeholders
Human Resources
Corporate Counsel
Procurement
Contracts Administration
Internal Audit/Compliance
Corporate Security
Chief Financial Officer
User community – i.e., managers, admins, etc.
Map business processes/best practices of each

9. Step 1: Program Design, (cont’d)
Five key areas:
Product
Volume & diversity
Customer service
Administration
Track and measure results

10. Step 1: Program Design, (cont’d)
Select a model
Vendor on Premise
Preferred Vendor Network

11. Step 2: Select an e-Procurement System
Build your own
Purchase & install a customizable software package
Choose a third-party, web-hosted, configurable tool

12. Step 3: Select Vendors Determine quantity & types of job requirements
Outline processes vendors must manage
Requisitions, intellectual property agreements, background checks/bonding, time-tracking and authorization, invoicing, reporting
Establish pricing model
Solicit vendor RFIs
Keep the stakes high

13. E-Procurement Systems - What to Look For
Diana Jovin
President
CascadeWorks, Inc.

14. Real World Results Significantly reduced potential liabilities by:
complying with all state/federal laws and regulations
protecting intellectual properties
receiving warranties and indemnifications from vendors
Developed rate management policy that allowed company to acquire requisite quantity and caliber of workers
reduced vendor margins by as much as 40%
established aggressive volume discount program

15. Real World Results
Automated 80% of manual and tactical tasks (time card tracking, spend authorizations, approval routing) allowing managers to focus on more strategic functions
Reduced “maverick” hires by more than 75%
Instituted much-improved expenditure and projections tracking
ROI - savings estimated in the millions

16. Contingent workforce management + E-Procurement processes and systems
The Wave of the Future
Contingent workforce management +
E-Procurement processes and systems