Published on March 6, 2014
Contingent Workforce and Services Procurement: An Overlooked Opportunity #AribaLIVE
Christopher J. Dwyer Research Director Ardent Partners Ltd. March 18, 2014 #AribaLIVE Copyright © 2014- Ardent Partners Ltd.
ABOUT • 3 Ardent Partners is a research and advisory firm focused on defining, advancing, and promoting the supply management strategies, processes, and technologies that drive business value and accelerate organizational transformation within the enterprise. Copyright © 2014- Ardent Partners Ltd.
Speaker Bio: Christopher J. Dwyer • 4 Research Director and VP of Operations Copyright © 2014- Ardent Partners Ltd. Recognized expert in complex spend management (business travel, contingent workforce management, meetings/events) Thought leader in the contingent workforce management industry Industry analyst for nearly a decade Previously a Director at the Aberdeen Group Benchmarked thousands of organizations across spend and supply management Recently named an “Analyst Superstar” by HRO Today in 2013 Recognized as a “Pro to Know” by Supply & Demand Chain Executive Magazine in 2014
Setting the Stage • • • 5 The average contingent workforce is going to rise by nearly 30% over the next three years. Only 45% of the typical company’s contingent workforce is actively accounted for. 62% of enterprises consider contingent labor (and all of its forms) as a vital business component. Copyright © 2014- Ardent Partners Ltd.
Ardent Partners CWM Framework • • • • 6 The CWM industry’s first-ever official Framework. Effective for ALL organizations, regardless of size, program scope, or region. Clear management path for each CWM category. Includes: Necessary performance metrics Labor goals/objectives Required competencies and capabilities Underlying technology and automation Copyright © 2014- Ardent Partners Ltd.
The Contingent Workforce Management Framework Traditional Independent Contractors Complex • Staffing suppliers • SOW-based projects • Freelancers / consultants (“classic” sense of temp labor) Low-to-mid-level talent Requires supplier management capabilities and services Unique expertise Requires a mix of workforce and spend management capabilities / etc. High-level talent Requires robust compliance and risk management capabilities Co-employment and audit risks • • 7 Copyright © 2014- Ardent Partners Ltd. • • • • •
What is the Value of Contingent Labor? 8 Copyright © 2014- Ardent Partners Ltd.
What is the Future of the CWM Industry? 9 Copyright © 2014- Ardent Partners Ltd.
What Does the 360-Degree CWM Program Entail? Spend Management Supplier Management Risk Management Talent Management 10 Copyright © 2014- Ardent Partners Ltd.
Where Does Technology Fit In? • • Vendor Management System (VMS) • Managed Services Provider (MSP) • 11 Next-generation services procurement Other solutions: Analytics / Business intelligence Pure procurement power Workforce, spend and supplier management Analytics / business intelligence Automation of key CWM processes Outsourced day-to-day operations (requisitions, supplier communications, etc.) Recruitment Process Outsourcing (RPO) Talent Acquisition Independent Contractor Engagement Specialist (ICES) Copyright © 2014- Ardent Partners Ltd.
Key Takeaways • • • • 12 The current scope of contingent labor includes traditional, complex and IC-based labor. The 360-degree program relies upon spend, supplier, risk and talent management capabilities. Quality is just as critical as cost or visibility. To take advantage of this overlooked opportunity, enterprises must look to the CWM Framework. Copyright © 2014- Ardent Partners Ltd.
Contact Information Christopher J. Dwyer Research Director and VP of Operations Twitter: @CJD_Ardent firstname.lastname@example.org www.linkedin.com/in/christopherjdwyer For more information please visit: www.cporising.com and www.ardentpartners.com 13 Copyright © 2014- Ardent Partners Ltd.
Contingent Workforce and Services Procurement: An Overlooked Opportunity Mary Finaldi, eEnablement Manager, Deloitte Services LP March 18, 2014 #AribaLIVE @ariba Copyright © 2014- Ardent Partners Ltd.
The Contractor Challenge • • • • • • 15 Create a standard business process Create a centralized repository Improve spend visibility Increase visibility into contractor details Reduce on-boarding handoffs Implement technology © 2014 Ariba – an SAP company. All rights reserved.
Procurement Services Managed • 55,000 Ariba Purchase Orders 800 Labor Purchase Orders • 129 Preferred Suppliers 78 Labor Suppliers • 16 7 Labor Categories © 2014 Ariba – an SAP company. All rights reserved.
Ariba Implementation History 17 © 2014 Ariba – an SAP company. All rights reserved.
Initial Rollout – Temporary Labor • • • • 18 Established foundation for all labor categories Introduction to e-Invoicing Revised internal controls purchasing policy Introduction of new Ariba users © 2014 Ariba – an SAP company. All rights reserved.
Overall Services Procurement Benefits • • Source labor categories to establish Preferred Supplier Program Fully automated P2P process • • • • 19 Including Time Sheet & Expense PO Flip to Invoice Cost Center Owners approve entire spend up front Spend posts to budgets sooner Improved reporting (spend, contractors, volume by location, etc.) © 2014 Ariba – an SAP company. All rights reserved.
Services Procurement Expansion • • • • • 20 Talent Development Automate on-boarding Plan integration between On Demand & On Premise for Services Procurement Contract Based Invoicing for Services Procurement Project Based integrating Sourcing & Buyer © 2014 Ariba – an SAP company. All rights reserved.
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. “Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. These firms are members of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the laws and professional regulations of the particular country or countries in which it operates. DTTL does not itself provide services to clients. DTTL and each DTTL member firm are separate and distinct legal entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts or omissions and not those of each other. Each DTTL member firm is structured differently in accordance with national laws, regulations, customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries, affiliates, and/or other entities. Copyright © 2013 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
Contingent Workforce and Services Procurement: An Overlooked Opportunity John W. Healy Vice President & Managing Director Global Talent Supply Chain KellyOCG @unclejunkmuses 18March2014 #AribaLIVE @ariba Copyright © 2014- Ardent Partners Ltd.
KellyOCG Holistic Talent Supply Chain Management Approach SUPPLIER NETWORK 4,600 across the Americas, APAC, and EMEA Global/Regional Structure SPEND UNDER MANAGEMENT Aggregator of the Niche $7.5B Client Retention We bring the best talent supply chain to the client 23 © 2014 Ariba – an SAP company. All rights reserved. GLOBAL FOOTPRINT 140 country capability
Talent Supply Chain Management Outsourcing Workforce Planning Holistic Talent Management Supply and Demand Forecasting Talent Sourcing/Vendor Management Workforce Balancing and Optimization Talent Supply Chain Program Design 24 © 2014 Ariba – an SAP company. All rights reserved.
Actionable Analytics 25 © 2014 Ariba – an SAP company. All rights reserved.
QUESTIONS #AribaLIVE Copyright © 2014- Ardent Partners Ltd.
What are the Current Challenges in Managing Contingent Labor? 28 Copyright © 2014- Ardent Partners Ltd.
What are the Goals of the Typical CWM Program? 29 Copyright © 2014- Ardent Partners Ltd.
Performance Metrics: Best-in-Class vs. All Others 30 Copyright © 2014- Ardent Partners Ltd.
General Capabilities, Best-in-Class vs. All Others 31 Copyright © 2014- Ardent Partners Ltd.
Complex CWM Capabilities, Best-in-Class vs. All Others 32 Copyright © 2014- Ardent Partners Ltd.
IC Engagement / Management Capabilities, Best-in-Class vs. All Others 33 Copyright © 2014- Ardent Partners Ltd.
Talent Management Capabilities, Best-in-Class vs. All Others 34 Copyright © 2014- Ardent Partners Ltd.
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