A ccording to Ardent Partners, visibility is the leading contingent workforce management challenge, with recent research reporting that nearly 48 percent of the average enterprise’s contingent workers are not taken into account when companies do financial planning, forecasting and budgeting.
If you’re a program manager responsible for contingent labor, this makes it hard for you to do your job. After all, how can you provide your executives an understanding of what is occurring within the organization when you don’t have visibility into data about your workers that is most important to your business? How can you take full advantage of the deep analytics, dashboards, and SOW/service-specific functionalities your VMS provides if all your contingent workers are not captured by your system?
The good news is you can have open and candid discussions with your executive team and account managers to relay the importance of capturing this information. Then you will be able to gain valuable insights from reporting and analytics tools to help mitigate potential risk.
Do You Have Strategic Suppliers Who Bypass Your VMS Technology? You Could Be At Risk
Not all suppliers, especially large, global, strategic suppliers, are enthusiastic about taking part in a program for managing services procurement and SOW-based initiatives. But if that important piece is missing, you won’t get a complete picture of what your spend really is.
Since visibility is the number one thing — especially with SOWs for large engagements — you ideally want to get all your spend within your VMS tool. Until you do, it will be difficult to answer important questions like:
- Do you have the ability to detect overbilling by a supplier and prevent overspending?
- Do you know what your supplier markups are?
- Can you report on change requests to the original SOW’s?
When you can’t see the big picture, it’s tough to make strategic, data-driven business decisions. Moreover, you are exposing yourself and your company to substantial risks.
How Getting Your Suppliers On Board Can Elevate Your Program and Protect Your Company
You know the importance of encouraging strategic suppliers to participate in services procurement. When you leverage the existing controls that are in place to mitigate risk, you have a better opportunity to reduce that risk.
How do you make that happen? How can you get large, strategic suppliers to take part in your services procurement solution? Different program managers take different approaches, depending on what is best for their programs and relationships. We asked several of these program managers for their best practice recommendations. To read their recommendations and more, download our whitepaper Encouraging Your Strategic Suppliers to Participate in Services Procurement.
Key Takeaway: Suppliers who don’t take part in services procurement put your contingent program and your company at risk.
For more details on how your organization can benefit from encouraging strategic suppliers to participate in services procurement, download the full white paper here.