By definition, the relationship between the organization and its myriad suppliers is a supply chain, and we all know that the strength of a chain depends upon its weakest link! So, it becomes imperative to ensure that all the links in the chain are strong and capable of withstanding the constant and unrelenting pressures that come from numerous sources, market conditions being among the foremost.
Many companies have elected to outsource responsibility for the procurement and management of contingent labor to staffing agencies who may work directly for the company, or through Managed Services Providers (MSP). Outsourcing can allow an organization to devote its total energies to its core areas of operation only when its suppliers’ performance is more than satisfactory. This requires efforts by both sides to establish a mutually supportive relationship.
Over the past two decades, we have managed the efforts of hundreds of staffing agencies participating in our clients’ MSP/VMS programs. Based on our experiences, here’s our list of their ‘must haves’ for mutually beneficial relationships.
All great business relationships start with shared expectations and a recognition of how each side will benefit from the relationship. Performance over time builds trust. Is it time to do a reality check on your contingent workforce management program? Examine all of the touch points between your suppliers and your company. Ensure that all stakeholders share a common understanding of the program’s goals, priorities and processes for interaction. Identify and address issues that are negatively impacting results or satisfaction.
A VMS has been known to bring in savings in time and costs. Apart from this; the improvements brought in by a Vendor Management System include operational efficiency and data-mining opportunities. A VMS brings in analytics and reporting functions by tracking relevant information needed for fact-based discussions.
In a future blog, we’ll explore this issue from the buyer perspective.
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