Afternoon Coffee: ‘Modest’ job growth; Everest sees expanding RPO market; Peloton has logistics problem, lessons

Jobs numbers came out today, and The Wall Street Journal characterized the addition of jobs as modest.

“U.S. employment grew modestly in August and unemployment showed signs of stabilizing at historically low levels, signs that a global economic slowdown isn’t driving the U.S. into outright recession but has dented the growth outlook,” it reports.

Unemployment stayed low and the same for the third straight month, coming in at 3.7% for August, the Journal reports.

Turning to RPOs to fill the talent gap

According to a recent Everest Group press release, the RPO market (recruitment process outsourcing) is “one of the fastest growing outsourcing segments today, with 20% growth in 2018 and consistent double-digit growth over the past four years. It reports Everest Group points to “a massive talent supply-and-demand gap in almost all major economies across the world” that is driving changes and high growth in enterprise utilization of RPO.

Everest said the developments driving change and growth include increased adoption from small and mid-market enterprises, as well as enterprises in new, previously low-demand industries like healthcare and retail. Also noted is the rise in multi-country deals.

RPOs are also introducing new services offerings. For example, “high-volume low-cost RPO, a technology-intensive approach to helping enterprises that require relatively less skilled manpower with high scalability and agility at significantly low prices.”

Everest also points out that RPOs are beginning to introduce total talent acquisition (TTA) offerings. The press release states that enterprises are gradually turning to TTA to source both permanent and contingent workforce “‘under one roof’” in pursuit of “cost, operational and strategic advantages” (something that, Spend Matters might also suggest, reflects the trend of enterprises relying on more and more contingent workforce).

Peloton problems and lessons for procurement

Peloton exercise bikes are arriving damaged or are causing damage once delivered by noted logistics firm XPO, according to Business Insider.

The article, which is behind a paywall, reports that Peloton has reacted to a social media backlash about the problem. The company is planning to go public and mentioned reputational concerns in its federal filing.

“The stakes are high,” the article states. “Peloton is aiming to go public, and in its recent S-1 filing, said ‘if we do not help our Members quickly resolve issues and provide effective ongoing support, our reputation may suffer.’ ”

XPO provided Business Insider with survey data that said 94% of customers who got a Peloton bike via XPO in May and June said they had a positive experience.

In Spend Matters’ experience, the lesson for procurement is that for goods, your company can have the best product, but total landed cost and "total landed experience" is also crucial — because the logistics firm is the last company your customers usually see before using your product. Bad logistics can make a great product into a bad supplier experience. And that’s bad for the supplier, procurement and the end user.

Report: Transparency in consumer goods supply chain is on the rise

A report by The Sustainability Consortium (TSC) says there's been an improvement in transparency related to sustainability reporting among product manufacturers, KamCity news said.

The report — “Reaching Sustainability Through Transparency” — said manufacturers had better insights into their own global operations, increasing transparency into sustainability issues throughout their supply chains.

Robotic barista company Briggo inks deal with Foxconn Industrial Internet

In a fresh move of further expansion in the U.S. market, the maker of the world's first gourmet, robotic barista, Briggo, said it had tied up with Foxconn Industrial Internet (Fii) to use the firm's cloud capabilities, AI and supply chain management to produce Briggo's autonomous Coffee Hauses. Customers can create customized, gourmet coffee and tea on-demand 24/7, Briggo said in a press release.

The announcement comes with the launch of a new Coffee Haus in San Francisco International Airport and the company's most recent news of partnering with SSP America to expand Briggo's presence to airports throughout North America.

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