Process & Best Practice Content

Tapping Your Most Underutilized Innovation Source: The Contingent Workforce

workforce

It’s no secret that talent is tougher to find these days. From skills deficits and low application levels to intense hiring competition between companies, contingent workforce managers know the search for the right candidates is fraught with challenges. No wonder, then, that one survey from the Society for Human Resource Management reported more than two-thirds of organizations hiring full-time staff are struggling to fill job openings. One result of this talent dearth, understandably, is that the lack of full-time talent translates into a reactionary need for contingent staff to fill the gaps. Scrambling to do this in a cost-effective and timely fashion, contingent workforce managers ultimately approach sourcing workers as a transactional activity.

What Sets World-Class Procurement Organizations Apart? Use of Digital Technology for One

There are many things that set world-class procurement organizations apart from their average-performing peers. It may be working closely with suppliers to drive innovation and manage risks, or perhaps it’s collaborating with senior management on strategic initiatives. According to a new report from The Hackett Group, world-class procurement organizations also have 29% fewer full-time workers on average, and they rack up 22% lower labor costs. But how is it that these organizations can achieve more with fewer full-time employees? One indispensable factor is digital technology, the report says.

A New Spend Metric: “Touched Spend” — Do We Need It?

AnyData Solutions

One of our Spend Matters Plus clients, a procurement manager in the energy sector, sent me a note asking about a new benchmarking metric that he recently saw being collected by CAPS research called “touched spend.” He sent me the following definitions below and asked me to weigh in on them, given my tenure at The Hackett Group running procurement research related to benchmarking, for sourceable spend, managed spend and also "touched" spend.

Human Capital Innovation (Part 3): Is the C-Suite Asleep at the Wheel?

Adopting a new way of leveraging talent means changing critical parts of an organization’s underlying musculature and nervous system. Ultimately, such a change requires a transformation of the reflex response of “how we get things done with talent.” This means a departure from well-established practices for hiring talent and managing work, projects and outcomes. In many ways, this is a decentralized, bottom-up process, but it cannot gain traction without the proactive support and power of the C-suite.

Why Procurement’s Persistent Tail Spend Problem is Now Finally Solvable

Tail spend frustrates many procurement groups. It’s messy, it’s complex and it’s time-consuming to tackle. Inking big deals and keeping stakeholders happy seem like far better priorities for the typical category manager, since that’s how he can turn executive heads and make his daily life simpler. At least, that’s how it used to be. These days tail spend is trending — and for good reason. Here are three reasons why this persistent thorn in procurement’s side is finally getting the attention it deserves.

OII Research Offers Insights for Fostering Enterprise Adoption of Online Labor Platforms

SpendLead

The first two posts of this Spend Matters series covered the Online Labour Index and related data (here an here). In this post, we cover other OII research focused on enterprise adoption of online labor platforms. This research was conducted and summarized in two OII blog posts by Gretta Corporaal, postdoctoral researcher in organizational studies at OXII. Notably, Corporaal’s research includes “the stories of two Fortune 500 firms [which] successfully adopted and integrated online freelancing in their business models.”

What Does the Future of Work Really Mean for the Enterprise? (ICYMI)

digital business transformation

The future of work is upon us, or at least that’s what the marketing gurus would have us believe. From the explosion of the gig economy to the increasing availability of online marketplaces and talent clouds for labor, the way businesses source, manage and spend for labor has changed dramatically. But amid this deluge of new information and technology, we may have forgotten to ask ourselves an essential question: What does this future really entail for large organizations?

Procurement is within Supply Chain, but is the Supply Chain within Procurement?

Procurement helps a firm feed the supply chain. And it may even call itself “supply chain.” But does it really live the supply chain? In other words, does it embody the principles and practices of supply chain excellence within its own services “business”?

To answer this question, we must define supply chain excellence, which consists of three major elements: Customer focus to understand and shape demand; supply performance that meets customer needs and business needs; and transformation that (re)designs the value chains (and supporting resources) that produce the products and services that satisfy the customer and meet key performance requirements.

Obviously, procurement must support this. If purchasing must become supply management, as Walter Kraljic so famously wrote, then it’s not about just episodic sourcing but rather “supplying” the customer-satisfying value chain holistically. Supply management thus becomes about building the extended supply network that is positioned to fulfill customer needs. In other words, supply management is customer facing.

Viva La Revolution: Flexible Staffing Models in China

Tradeshift Baiwang

Spend Matters welcomes this guest post from GEP.

As the world's most populous country, China's labor market is undergoing unprecedented structural revolution. In recent years, due to labor shortages caused by a decreasing demographic pool and labor cost pressures, Chinese companies are eager to adopt more flexible staffing models to maintain labor agility and cost competitiveness. As per the Chinese Human Resource Service Industry Research Report published in 2016 by HRoot, it’s estimated that between 2016 and 2020, the average compound annual growth rate of China's flexible staffing industry will hold steady at around 22%, and China's flexible staffing market scale will reach about 60 billion yuan, which is more than $8 billion.

Integrated Workforce Solutions: A New Alternative in the MSP-IMP Debate

Spend Matters welcomes this guest post from Brandon Moreno, CEO of EverHive.

Hear the term MSP, and you likely have mixed emotions. Managed service providers (MSP) emerged in the 1990s to help companies manage their contingent or temporary workforce more efficiently. But even though MSPs have become a fixture in the industry, the perceived maturity of the MSP model and the accelerating evolution of workforce categories, enterprise requirements and available technology solutions are challenging companies to make new choices about how to manage their contingent workforce.

Supply Chain Flexibility: Does Your Design Pass the Proactive Test?

Global Risk Management Solutions

Spend Matters welcomes this guest post from Eric Robinson, senior project engineer at Kenco Group.

When your supply chain encounters a roadblock, how does it respond? Does one problem spiral into another, leaving you without visibility into the causes? If so, your supply chain design is reactive. Instead of showing and slowing the roadblock as soon as possible, your design left you wide open. As an overseer of your supply chain, you want to do whatever you can to arm it against slip-ups. You need to play the offensive to ensure your design (and your team members) are fully prepared for bumps in the road.

Strategies Every Procurement Professional Should Know to Reduce Inventory Levels and Cost

warehouse

Spend Matters welcomes this guest post from Ana Sofia Gómez, a manager at GEP.

In an organization, the challenge for optimizing costs goes beyond getting the best prices in the market through the procurement function. The challenge also involves implementing strategies, or acquiring added values and services that allow the organization to improve their process administration and get benefits from those improvements. With manufacturing companies, one area of opportunity is inventory management.