T hese days, there seems to be a supplier for just about everything. If your organization has identified a need, chances are a company exists to help fulfill it. Sourcing contingent labor is no exception. In fact, approximately 88% of enterprises source contingent labor from traditional staffing suppliers/agencies (Ardent Partners). Today, this demand supports roughly 17,000 staffing and recruiting companies in the U.S. alone, according to the American Staffing Association.
Assuming your company falls in the 88% of enterprises sourcing contingent labor from as many as hundreds of available suppliers, how do you know if you’re effectively managing your supplier program and maximizing your returns?
As staffing suppliers are a necessary arm of your vendor ecosystem, the associated risks can greatly impact your business processes, outputs and even your bottom line if not properly managed. You must ensure that your suppliers are providing the right talent, at the right price when you need it.
So where do you begin? Ensuring you have the right tools and best practices in place to support this initiative is a critical first step.
Establishing program goals and objectives can help provide the necessary framework to effectively guide staffing supplier success metrics. This leads to developing service-level agreements (SLAs) where the scope, quality and responsibilities are clearly defined. These metrics, often captured in the form of a supplier scorecard, detail performance expectations and requirements of suppliers, which are then measured against key performance indicators (KPIs).
Typical supplier performance metrics include spend, headcount, supplier quality, time-to-fill, compliance and supplier specialties. This data empowers your program office to more accurately score and rank a supplier’s performance against others. With this level of visibility, you can identify top performers, coach underperforming suppliers, or even remove/replace unsatisfactory suppliers. To be fair, all suppliers should be ranked against the same criteria.
Where does IQNavigator come into play? IQN’s VMS solution offers everything you need to effectively and strategically manage your supplier network by providing enhanced visibility, process automation, cost savings, compliance and risk controls, and more. I encourage you to reach out and learn more about how IQN can help you maximize the value of your overall contingent labor program.