RPO from a Procurement's View

RPO from aProcurement’s View Tomorrow Accurate Facts Lead to Accurate Decisions.

Who is HCMWorks? HCMWorks helps procurement departments OPTIMIZE indirect spend. A consulting, advisory and outsourced services provider focusing on the analysis, strategic direction, identification, implementation and management of indirect spend.“High-level strategy and design, along with the critical hands-on management of dailytransactions”…….“Ability to go beyond the services component to look holistically at all indirect spend to findopportunities for savings for the entire enterprise”…….“Works with user community (execs with buying power) to maintain compliance with standardsthat the company has setup; does not dictate the standards”…. Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Who is PSC? Payment Services Corporation is a subsidiary of HCMWorks, Inc. Payment Services Corporation is a leading North American Professional Employment and Payment Processing Company. We manage the time allocated to the management of Contractor Payments and Employee Payroll tax filing so our clients can focus on their core business. We aggregate Independent Contractors and Sole Proprietors to ensure compliance to legal, tax and regulatory statutes. Since 1987 our management team has facilitated the payroll for well over a million employees and independent contractors. Our experts understand the provincial and federal regulations and work to ensure that all payments are facilitated in a timely fashion. Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Control vs EMPOWER MOTIVATE (positively / negatively) • Energy • Short-livedCOLLABORATE • Change Management • Time Consuming EMPOWER • Viral • Self-managing Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Survey Results 2011Biggest challenges organizations are currently facing: •Lack of visibility into indirect spend • Making people aware that a procurement group is availableHow do you see things changing in the next 1-3 yrs? • Will see a rebound in usage of contract labor as growth happens • Good time to be in the procurement space – much more visibility into cost side • Raised visibility with firms that have a lot of indirect spend with executive teamWhat are the big problems you’ll be looking to solve over the next 12 months? • Relationship mgmt is critical – anyone can source and negotiate, harder to manage acct on day to day basis Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Renewed Focus on Procurement Executive Mandates Temp LaborSarbanes-Oxley Facilities Legal Goods Marketing ProfessionalCo-Employment Services Spend Under Sourcing & ThoughtCompliance Management Supply Chain Leadership Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Organizational Relationships Suppliers Supplier Enablement Supplier Managers Settlement Management Contingent Pro Legal Facilities Marketing Goods Labor Services Category Management and ServicesSpend Management Solution(s)Hosting / Infrastructure Monitoring / SLA Internal “Customers” (requestors) Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where’s the Opportunity? 1) Need(procurement)(HR)(internal users/requestors)When you think of your internal customers as having needs, and theprocess and/or tools that they use – is it driving (empowering)adoption, or is it more like ―you will do this‖ and as a result, drivingadoption and change management issues? Who can assess, sourceand implement any number of initiatives to further this program’ssuccess? Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where’s the Opportunity? 2) Order(procurement)(HR)(internal users/requestors)(RPO)Is it easy? Is it different that what they’re used to? Does it take too muchtime/energy? Does they have to pay for a ―service rep‖ to ―broker‖ theorder because of the difficulty and/or specificity of the order request?Does your RPO provider(s) have issues? How does the changingRPO/Staffing landscape effect this portion of your service? Is theprocess integrated into organizational systems (ERP/VMS/etc) for laterreporting? Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where’s the Opportunity? 3) Source (strategic sourcing)Is the sourcing process objective? Since the staffing owned RPO maybe brokering the request and the staffing owned VMS may be facilitatingthe transaction, are your internal customers getting what they’ve askedfor? In the end, who is looking out for your enterprise’s best interest? Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where’s the Opportunity? (HR) 4) Manage (finance) (legal) (procurement)Reduced:Legal Expenses Contractor AvailabilityHR Management Competitive Risk CostsAccounts Payable Management Finance Department ExpensesWorkforce Misclassification Exposure Timekeeping ExpensesCo-employment Risk Expense Contingent Workforce Mgmnt ExpenseSpend Management Expenses Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where’s the Opportunity?5) Settle (finance)Is the process fully integrated? How are invoices without PO’s handledfor this category? Is the settlement/consumption (time/milestonesubmission) process as efficient as it needs to be? Is this leading to anyadoption/change management issues? Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Where Do You Need Help? Knowledge of Knowledge of your supplyyourbuyers, buyin market to meet yourg habits, business business requirementsrequirements and through Strategic Sourcing culture, requiresheavy stakeholder involvement Cash Cost Quality Service Keep Optimize Compliance and Report and Procure-to-Pay Process Savings Manage Application Infrastructure Compliance Joint implementation of strategies, processes and systems with Stakeholders and Suppliers to Lock in the Savings Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Business Requirements Category Management Settlement Advisory Strategic Program Process Settlement Services Management Sourcing Implementation Management ManagementStrategic • Organizational & supply-base review • Market and competitive analysis • Strategic roadmap developmentPlanning • Opportunity assessment • Business management alignment • Implementation planProcess • As-is procurement process mapping • Technology automation opportunities • Best-practices recommendationsConsulting • Industry benchmarking • Identifying areas of spend leakage • Implementation planRisk • Risk assessment • Risk mitigation recommendationsAssessment —Supply-base • Implementation plan —Offshore/outsourcing services ―Contingent workforce ―Procure-to-pay process and policies Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

SRM - KPI Program Quality - 30% Percentage Target Points Actual ScorePercentage of positions filled 80.00% 95% 24 n/a Kelly Services 78% n/a Manpower 19.9% n/aPercentage of No Show status 10.00% < 5% 3 4.02% 3Percentage of Terminations for reason 10.00% <5% 3 2.5% 3 Cost – 25% Percentage Target Points Actual Score MP – $ 20.97Work Order Bill Rate Comparison by service (admin) 70.00% Average 17.50 n/a Kelly – $ 16.24 MP – $ 20.98Bid Bill Rate Comparison by service (admin) 20.00% Average 5 n/a Kelly – $ 16.44Regional Bill rate Comparison by service (admin) 10.00% Average 2.50 $ 18.61 n/a Delivery – 15% Percentage Target Points Actual ScoreNumber of requests filled on time? 40.00% 95% 6 65% ** 4.08Number of same day next day requests filled on time 40.00% 95% 6 44% ** 2.76Average time to fill a request 20.00% Average 3 Support – 15% Percentage Target Points Actual ScoreProblem Resolution 40.00% 3 6 2 3.96Repeating or Persistent Problems 60.00% 3 9 2 3.96 Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Help You Source Category Management Settlement Advisory Strategic Program Process Settlement Services Management Sourcing Implementation Management ManagementSpend Analysis • AP and Purchasing data sourcing • Spend cube creation • Opportunity assessment and cleansingSupply Base • Evaluation of market trends, supplier • Profile of current supplier spend, • Opportunity assessmentAnalysis capabilities, performance performance capabilities compared benchmarks to marketRequirements • Assessment of incumbent supplier • Data gathering from stakeholders • Development of RFX documentsDefinition performance • Definition of RFX evaluation criteria • Validation of requirementsRFX Execution • Execute RFX process • Cost savings analysis • Recommendation developmentand Evaluation • Evaluate RFX process • Service level analysis • Approval process managementSupplier • Supplier selection communicationSelection and • Contract draft processContract • Contract review & final negotiationNegotiation Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Program Implementation Category Management Settlement Advisory Strategic Program Process Settlement Services Management Sourcing Implementation Management ManagementApplicationDeplo • On-demand platform configuration • PunchOut integration to • Additional configuration andyment ERP/procurement infrastructure (if customization available desired)Best Practices • As-is and to-be procure-to-pay • Phased rollout project plan • Resource augmentationImplementation process definition and gap • Program governance structure identification identification definitionChange • Gaining and maintaining executive • Implementation of updated • Employee trainingManagement and business operations sponsorship procurement and AP policies and • Supplier transition and training • Strategic communications planning procedures and implementation Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Process Management Category Management Settlement Advisory Strategic Program Process Settlement Services Management Sourcing Implementation Management ManagementRequisition • Daily monitoring of requisition flow • Requisition expedites (e.g. same- • First day calls (ensure candidateManagement • Create requisition on behalf of day) arrival) managers • Coordinate candidate reviews • Timesheet and receipt proxy entrySourcing • Verification of supplier/candidate • Hiring manager / Requester statusSupport compliance (e.g., background update check, education requirements)Change Order • Manage candidate/supplier • Order updates and extensionsSupport replacementSystem Data • Add/edit job types/descriptions/ • Rate adjustments and updates • Business rules updates (bidMaintenance locations and catalogs • Maintain supplier users factors, supplier scoring, approval • Sourcing rules management tolerances)Tactical Supplier • Supplier training (ongoing) • Daily interface w/suppliers on • Gather performance evaluationsManagement • Weekly KPI review performance issues from managersCompliance • Weekly review of corporate/tenure • Weekly analysis of PO and work • Supplier spending limit approvalOversight policy issues and compliance order actuals-against-budget audit • Supplier SLA audit Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Settlement Management Category Management Settlement Advisory Strategic Program Process Settlement Services Management Sourcing Implementation Management ManagementInvoice • Invoice receipt and consolidationProcessing • Timesheet and progress log matching against negotiated ratesheets and work orders • Ensure correct pro-forma invoice generation • Customer invoice generationSupplier • Settlement issuancePayment • Supplier approvals • Payment schedule management to ensure SLA and terms are metException • Dispute resolutionHandling • Reconciliation • Invoice adjustments • Credit processing Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

Control vs EMPOWER MOTIVATE (positively / negatively) • Energy • Short-livedCOLLABORATE • Change Management • Time Consuming EMPOWER • Viral • Self-managing Accurate Facts Lead to Accurate Decisions. Copyright 2012 HCM Works Inc.

RPO from a Procurement's View

by HCMWorks on Jan 24, 2012

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RPO from a Procurement’s View — Presentation Transcript