Examining Current and Future Supply Chain Capacity – 10 Services Procurement Secrets (No. 7) Jason Busch - April 1, 2015 6:29 AM | Categories: Category Management, Procurement Strategy & Planning, Supply Chain Management, Supply Chain Visibility | Tags: L2, Sourcing and Categories When Ford pursued a light-weighting program on its popular F-150 line of trucks, it had to understand both the existing and potential supply chain and capacity of the supply market (and different alternatives) years in advance of actual production. Yet when it comes to how companies consume and use third-party services, including contingent workforce management, few organizations formally translate and compare these forward-looking requirements to existing "supply." This includes the services equivalent of a traditional make vs. buy analysis. Some organizations have the right resources in house to conduct these types of analyses – and if so, these resources should be "inventoried." Yet our findings suggest only a few firms practice strategic workforce planning. Procurement involvement in planning/budgeting is similarly low, and seeing procurement and HR working together to do both is a bigger rarity. Procurement has its own issues (an overt focus on cost – read: price – vs. stakeholder outcomes). Category management often comes up short in services efforts as well. It is important to realize that contingent labor categories and classifications are also an "overlay," modeled across the spend taxonomy and often fungible (e.g., substituting a job requisition for a project-based initiative). Regardless of internal limitations, don’t look back – look forward to model requirements. 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. Related ArticlesIQNavigator: What You Need to Know About the Transforming VMS ProviderWhat to Expect in 2015 From VMS Vendor IQNavigator – Prospect, Customer and Partner RecommendationsIQNavigator Comes of Age: The Future VMSWhy the Staffing and Contingent Marketplace is Failing Procurement The Evidence: How the Staffing and Contingent Market is Failing ProcurementBeeline, OnForce and the Future of Services Procurement and the Extended WorkforceReinvigorate Your Services Procurement and Contingent Workforce Program: A 10-Step How-To Guide Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.