There are two philosophies in contingent labor spend management: 1) knowledge is power and 2) ignorance is bliss.
These philosophies are applied by two very different types of professionals, and Superior’s spend analysis consulting services are positioned to help those who understand that having clean data and visibility into spend is far more blissful than ignorance.
With more than 50 years of staffing industry experience, Superior has an intimate knowledge of the cost structures associated with a wide range of services, from recruiting to payrolling to direct placement. In helping our customers benchmark their programs, we apply several of our own philosophies:
- Front-load the research – Data is good at hiding, often in the most unlikely places. Superior’s expert teams partner with wide-ranging customer stakeholders-including those in A/P, Diversity, Operations, HR, Procurement, and others-to ensure that all spend is accounted for.
- Uncover risks through gap analysis – With reliable data in hand, Superior reviews all of the information to ensure that the contingent labor program is positioned for success. This means that no one customer location should be overly reliant on one supplier, and that all suppliers are vetted for capabilities and conformance with standardized Ts & Cs.
- Negotiate with and right-size the supply base – Applying our industry knowledge, Superior ensures that pricing models are fair and negotiates those that aren’t. Also, the results of these negotiations and the gap analysis provide direction to rationalization. Right-sized supply bases are critical to effective support-when there are too many suppliers supporting a program, they begin to channel their prime candidates to other customers, where their efforts are more routinely rewarded.
- Devise smart cost savings strategies – Superior believes in employing cost savings initiatives that uphold quality of service. It is important to remember that pay rates must remain at market levels. Otherwise, turnover becomes a problem and any cost savings obtained are consumed by productivity losses and expenditures associated with replacing and training resources.
- Forecast, forecast, forecast – Having current data is wonderful. Marrying that data to historical information to uncover trends…that’s where the real power lies. This allows our customers to make smart purchasing decisions and develop contingent labor financial plans.
Often, our spend analysis services are delivered as a precursor to full-blow managed service program (MSP) deployments. However, a number of organizations require assistance only with this first step-gaining an understanding of current state. Either way, knowledge powers profitability.