Link Processes to Other Procurement Programs – 10 Services Procurement Secrets (No. 6)

hands holding jigsaw

Contingent workforce success is magnified when programs are truly linked together rather than loosely coupled. There is early evidence we have seen based on our own analysis of supplier diversity programs that some progress has been made in this one area. But “loosely coupled” rather than “joined at the hip” remains the norm, rather than the exception.

This is a shame, because in mirroring the types of metrics that direct materials and supply chain programs can achieve from a cost, quality, consistency and performance standpoint requires tighter process linkages with other areas of procurement including risk management, supplier diversity, compliance and working capital management/trade financing.

Compliance can be a great place to pursue process linkages for less mature programs. We are all aware that risk and fear is a great "sales tool" to gain support for an initiative when traditional ROI approaches don't work. There is significant and rising risk around compliance requirements, IT/information security, HR/worker classification, environmental/health and safety, etc. If the carrot doesn’t work, there is plenty of stick to leverage.

Yet don’t ignore the bigger picture of closer linkage overall.

This analysis is based on the Spend Matters research study, Applying Supply Chain Rigor to Contingent Workforce Management, which is available for limited period of time for free download in the Spend Matters research library.

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