This document discusses how companies can optimize their talent supply chain through analytics. It argues that companies should analyze data on external talent suppliers and their performance on key metrics like response rate and hires. This allows companies to identify top performers and areas for improvement. The document outlines KellyOCG's approach to talent supply chain analytics, which uses tools like Pareto analysis and supplier scorecards to benchmark suppliers, understand relationships between metrics, and guide optimization of the supplier base. The goal is to develop actionable insights that reduce costs and improve the quality of external talent.
Innovative Data Leveraging for Procurement AnalyticsTejari
This webinar will explore the types of problems and questions faced by procurement executives that can benefit most through the application of analytical solutions (e.g. innovation, strategic cost management, risk mitigation, etc.). In addition, we will cover the different forms of cognitive solutions that are emerging to drive real-time decision-making and predictive sourcing capabilities.
This paper provides lessons on how leaders can enable procurement change within their organization. It identifies seven key obstacles that tend to arise within the firm, and provides suggestions and examples on how these can be tackled.
5 transformative strategies to unlock more-procurement_value_ardent partnersBravoSolution
The current generation of procurement professionals has witnessed first-hand a period of unrivaled advances for their profession as market forces and new technologies combined to pull procurement to the center of business operations and business results. While the foundation of procurement's future will be built upon the past, the strategies and approaches that drive new successes will be markedly different. This report looks at the transformative strategies that will unlock procurement's next wave of value.
The proposed wave approach makes use of a simple supplier profiling method that forms the basis of the entire supplier engagement strategy. Its effectiveness stems from the fact that it avoids the use of complicated data that is difficult to obtain and is often unreliable.
Innovative Data Leveraging for Procurement AnalyticsTejari
This webinar will explore the types of problems and questions faced by procurement executives that can benefit most through the application of analytical solutions (e.g. innovation, strategic cost management, risk mitigation, etc.). In addition, we will cover the different forms of cognitive solutions that are emerging to drive real-time decision-making and predictive sourcing capabilities.
This paper provides lessons on how leaders can enable procurement change within their organization. It identifies seven key obstacles that tend to arise within the firm, and provides suggestions and examples on how these can be tackled.
5 transformative strategies to unlock more-procurement_value_ardent partnersBravoSolution
The current generation of procurement professionals has witnessed first-hand a period of unrivaled advances for their profession as market forces and new technologies combined to pull procurement to the center of business operations and business results. While the foundation of procurement's future will be built upon the past, the strategies and approaches that drive new successes will be markedly different. This report looks at the transformative strategies that will unlock procurement's next wave of value.
The proposed wave approach makes use of a simple supplier profiling method that forms the basis of the entire supplier engagement strategy. Its effectiveness stems from the fact that it avoids the use of complicated data that is difficult to obtain and is often unreliable.
Supplier Procurement Analytics powered by PMSquarePM square
Supplier Procurement Analytics solution powered by PMSquare assists procurement and finance departments lower costs. The solution provides detailed analytics to identify enterprise spend, transaction costs and how to better manage your suppliers
Penny wise procurement strategies-long-term-effectiveness-short-term-wins 1012-1Dr Gordon Murray
Discusses the concept of ‘short-term financial gains’
at the cost of ‘long-term sustainability’. The premise is that there is a need to avoid short-term procurement strategies during financial crises, which could compromise long-term success. The paper’s central theme is built around the popular management model Porter’s 5 Forces, and we correlate the theories in this model to the real world challenges of procurement and how they can provide a long-term cost efficient solution.
S2 p strategic opportunity-s2p-implementation-0113-1Dr Gordon Murray
Addressing S2P (Source-to-Pay) is necessary for organisations today in order to reduce transaction costs, but that alone is not enough to drive real cost reduction and bottom line profitability. To derive the maximum benefit, organisations need to seize the opportunity created by the disruption of a S2P implementation to radically transform the way in which procurement is carried out throughout the organisation. This paper provides suggestions on how to make the most of the opportunity created by S2P implementation and makes recommendations on how to maximise the benefits,
Global megatrends are escalating the war for top talent and reshaping business as we know it. To stay ahead, organizations are innovating at warp speed. The problem is, in most organizations business innovation dramatically outpaces talent innovation. And when your business strategy and talent strategy are out of sync, you can't drive top business performance. By creating talent innovations that accelerate your top business goals and integrating them throughout your entire organization, you will establish talent as a strategic advantage.
Today only one in three business leaders are satisfied with their supply chain. One of the issues is the lack of agility. In this report, we share case studies on how to improve supply chain agility. This report first defines supply chain agility and then shares case studies of agility techniques that work to improve the ability to deliver the same cost, quality and customer service given the rising levels of demand and supply volatility. Each case study is supported by the Supply Chains to Admire financial analysis.
Broken links: Why analytics investments have yet to pay off, sponsored by ZS, draws on the survey findings, interviews with senior corporate executives and desk research to explore the current state of sales and marketing analytics.
The Supply Chains to Admire™ analysis is an annual study of supply chain excellence. Now in its fifth year of development, the focus of this research is to better understand supply chain performance and improvement of 655 publicly held companies in 28 peer groups for the period of 2010-2017. This year there are 31 winners! At the 2018 Supply Chain Insights Global Summit, winners from the analysis will share insights on driving supply chain excellence.
How Can You Drive Opportunity If You Cannot Manage Risk?Lora Cecere
Report Details: The research for this report was conducted via an online survey from March 12 - May 11, 2018. Surveys were conducted among 93 respondents -- a mix of business users (manufacturers, wholesalers/distributors/co-operatives, and third-party logistics providers, n=34), vendors (software providers and consultants, n=39), and others (academics, analysts, unemployed, and others, n=20).
Objective: To understand the current and expected future state of supply chain risk management, the biggest drivers of risk, and the impact on supply chain disruptions. NOTE: supply chain risk management is defined as the proactive identification and assessment of potential risks to the supply chain, as well as the development of strategies to avoid these risks.
Highlight: Nearly two-thirds of respondents believe that their company performs better today on risk management practices than five years ago yet they had 3.5 disruptions last year on average. Managing risk requires a network approach. Today’s investments in end-to-end supply chain are by and large not effective in risk mitigation. Only 37% have visibility of extended-tier suppliers and most lack the solutions to manage global complexity.
Time to Tell Your CPOs to Collaborate with SuppliersMelih ÖZCANLI
Time to Tell Your CPOs to Collaborate with Suppliers
Companies want value, and they want their chief procurement officers (CPOs) to deliver it. How can CPOs get the job done? By identifying and then collaborating with their key suppliers.
2012, A.T. Kearney, Inc. All rights reserved.
Mike Hales, partner, Chicago mike.hales@atkearney.com
Hendrik Disteldorf, principal, New York hendrik.disteldorf@atkearney.com
Oliver Zeranski, principal, New York oliver.zeranski@atkearney.com

What Is the Value Proposition of Sales and Operations Planning?Lora Cecere
Survey Details: The research for this report was conducted online from January 6 - September 14, 2015 by Supply Chain Insights. Surveys were conducted among Manufacturers and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who have at least one S&OP process (n=73). For the purpose of analysis, respondents were split between those with a self-reported "effective" S&OP (n=31) and those without (n=42).
Objective: To understand the value proposition of an effective S&OP (Sales and Operations Planning) process. NOTE: An S&OP process was defined as a "tactical planning process to forecast sales and plan operations."
Highlight: Companies with a more effective S&OP process are more aligned, agile and balanced, which leads to greater control and improved response.
Supplier Procurement Analytics powered by PMSquarePM square
Supplier Procurement Analytics solution powered by PMSquare assists procurement and finance departments lower costs. The solution provides detailed analytics to identify enterprise spend, transaction costs and how to better manage your suppliers
Penny wise procurement strategies-long-term-effectiveness-short-term-wins 1012-1Dr Gordon Murray
Discusses the concept of ‘short-term financial gains’
at the cost of ‘long-term sustainability’. The premise is that there is a need to avoid short-term procurement strategies during financial crises, which could compromise long-term success. The paper’s central theme is built around the popular management model Porter’s 5 Forces, and we correlate the theories in this model to the real world challenges of procurement and how they can provide a long-term cost efficient solution.
S2 p strategic opportunity-s2p-implementation-0113-1Dr Gordon Murray
Addressing S2P (Source-to-Pay) is necessary for organisations today in order to reduce transaction costs, but that alone is not enough to drive real cost reduction and bottom line profitability. To derive the maximum benefit, organisations need to seize the opportunity created by the disruption of a S2P implementation to radically transform the way in which procurement is carried out throughout the organisation. This paper provides suggestions on how to make the most of the opportunity created by S2P implementation and makes recommendations on how to maximise the benefits,
Global megatrends are escalating the war for top talent and reshaping business as we know it. To stay ahead, organizations are innovating at warp speed. The problem is, in most organizations business innovation dramatically outpaces talent innovation. And when your business strategy and talent strategy are out of sync, you can't drive top business performance. By creating talent innovations that accelerate your top business goals and integrating them throughout your entire organization, you will establish talent as a strategic advantage.
Today only one in three business leaders are satisfied with their supply chain. One of the issues is the lack of agility. In this report, we share case studies on how to improve supply chain agility. This report first defines supply chain agility and then shares case studies of agility techniques that work to improve the ability to deliver the same cost, quality and customer service given the rising levels of demand and supply volatility. Each case study is supported by the Supply Chains to Admire financial analysis.
Broken links: Why analytics investments have yet to pay off, sponsored by ZS, draws on the survey findings, interviews with senior corporate executives and desk research to explore the current state of sales and marketing analytics.
The Supply Chains to Admire™ analysis is an annual study of supply chain excellence. Now in its fifth year of development, the focus of this research is to better understand supply chain performance and improvement of 655 publicly held companies in 28 peer groups for the period of 2010-2017. This year there are 31 winners! At the 2018 Supply Chain Insights Global Summit, winners from the analysis will share insights on driving supply chain excellence.
How Can You Drive Opportunity If You Cannot Manage Risk?Lora Cecere
Report Details: The research for this report was conducted via an online survey from March 12 - May 11, 2018. Surveys were conducted among 93 respondents -- a mix of business users (manufacturers, wholesalers/distributors/co-operatives, and third-party logistics providers, n=34), vendors (software providers and consultants, n=39), and others (academics, analysts, unemployed, and others, n=20).
Objective: To understand the current and expected future state of supply chain risk management, the biggest drivers of risk, and the impact on supply chain disruptions. NOTE: supply chain risk management is defined as the proactive identification and assessment of potential risks to the supply chain, as well as the development of strategies to avoid these risks.
Highlight: Nearly two-thirds of respondents believe that their company performs better today on risk management practices than five years ago yet they had 3.5 disruptions last year on average. Managing risk requires a network approach. Today’s investments in end-to-end supply chain are by and large not effective in risk mitigation. Only 37% have visibility of extended-tier suppliers and most lack the solutions to manage global complexity.
Time to Tell Your CPOs to Collaborate with SuppliersMelih ÖZCANLI
Time to Tell Your CPOs to Collaborate with Suppliers
Companies want value, and they want their chief procurement officers (CPOs) to deliver it. How can CPOs get the job done? By identifying and then collaborating with their key suppliers.
2012, A.T. Kearney, Inc. All rights reserved.
Mike Hales, partner, Chicago mike.hales@atkearney.com
Hendrik Disteldorf, principal, New York hendrik.disteldorf@atkearney.com
Oliver Zeranski, principal, New York oliver.zeranski@atkearney.com

What Is the Value Proposition of Sales and Operations Planning?Lora Cecere
Survey Details: The research for this report was conducted online from January 6 - September 14, 2015 by Supply Chain Insights. Surveys were conducted among Manufacturers and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who have at least one S&OP process (n=73). For the purpose of analysis, respondents were split between those with a self-reported "effective" S&OP (n=31) and those without (n=42).
Objective: To understand the value proposition of an effective S&OP (Sales and Operations Planning) process. NOTE: An S&OP process was defined as a "tactical planning process to forecast sales and plan operations."
Highlight: Companies with a more effective S&OP process are more aligned, agile and balanced, which leads to greater control and improved response.
Slideshare 52 Ways to Break through the Glass Ceiling Glenda May
Glass ceiling or sticky floor?
Do you feel that you’ve gone as far as you can with your current employer? Do you feel stuck? Are you working longer hours with little return? If so, you’ve hit the “glass ceiling” - the point where you can clearly see the next level of promotion, yet despite your best efforts, an invisible barrier seems to stop you from advancing.
As women, we need to understand these barriers: not only those imposed on us, the glass ceiling, but also our own personal and often unconscious resistance to playing the game, the sticky floor.
This book provides tips and tools to help you get off the sticky floor and break through the glass ceiling – to get you out of your comfort zone, take a risk and be the best you, you possibly can be.
http://bit.ly/1yubhdC
Implementing a Managed Staffing Program with a Managed Staffing Provider (MSP) or Vendor Management System (VMS) technology is a culture shock for many organizations. There are lots of questions: What data do we have? Will hiring managers buy-in? How will we communicate the changes? All of which leads to the main question: Are we ready?
Click Here to Watch the Pre-Recorded Webinar >> http://www.yoh.com/managed-staffing-programs-cws-webinar-registration
Join us for a live expert panel session to tackle the issues surrounding readiness for a Managed Staffing Programs. Whether you are considering a new program, reworking an old program or even self-managing your own contingent labor program, taking time to assess your readiness could be the difference between a successful implementation with results or one that merely lingers and causes disruption.
MSP & RPO Masterclass by Francesca Vassallo-Todaro and John Nurthenassolavoro
John Nurthen - Executive Director Global Research
Francesca Vassallo-Todaro - Operations Development Specialist
Ciett World Employment Conference
Rome, 28th May 2015
Supply Chain Metrics That Matter: A Focus on the Retail Industry - 16 FEB 2017Lora Cecere
Report Details: This report is based on analysis of financial balance sheet and income statement data within the Retail industry, for the period of 2006-2015. The data is collected from YCharts.
Objective: To use financial balance sheet and income statement data to better understand the state of Grocery Retailers' and Mass Merchants' supply chains and to determine which companies’ supply chains did the best on the delivery of a portfolio of metrics over the last decade.
Highlight: During the Great Recession retailers faced strong declines in spending. It was a critical time, but for many it was an opportunity to emerge stronger. Those who redefined their stores for the dollar-conscious customer or built new and innovative formats while driving supply chain innovation, drove strong balance sheet results. Others learned that doing traditional retail more efficiently was not enough.
Streamline Your Supply Chain Strategy Using These 3 StepsAndrew Das
Today’s supply chains are constantly changing, and leaders are being forced to reduce costs and increase efficiencies each step of the way. With the recent spike in demand volatility due to the pandemic, supply chain leaders see a clear need to accelerate their processes and increase their agility through improved demand planning and forecasting.
Expert tips to navigate the Complex World of Supply Chain Services | TekLinkTekLink International LLC
Unlocking the Power of Supply Chain Services: A Roadmap to Operational Excellence, Customer Satisfaction, and Cost Savings. Discover the key processes, strategies, and technologies that drive efficient delivery, mitigate risks, and foster collaboration. Learn how to choose the right provider, maximize efficiency, reduce costs, and measure success. Your path to supply chain success starts here!
Supply Chain Metrics That Matter: A Focus on the High-Tech Industry - 2016Lora Cecere
Executive Overview
High-Tech supply chains serve global markets with regional preferences. They include some of the most advanced processes and strongest supply chain leadership across all industries. As a result, the value chain made more progress than others in the course of the last decade.
Unlike other value chains, all four segments of this value chain improved inventory turns. It was through hard work, network design, and a focus on planning. While other industries implemented supply chain planning and then turned to spreadsheets, this industry got good at managing inventories. The stakes were higher. As inventories sit in the channel for the High-Tech industry, prices fall. As a result, this industry has developed some of the best inventory practices across all industries.
On the flip-side, the lack of growth and the declining margins of the Contract Manufacturing industry is a risk for this value chain. Within the High-Tech value chain, Contract Manufacturing is the weak link.
The industry will drive the autonomous supply chain. These leaders will make the digital pivot first. With some of the earliest technology adopters, and with more to gain from the adoption of technology, look for companies like Apple, Cisco, Dell, EMC, Emerson, Intel, and Samsung to drive cloud-based computing, cognitive computing, the Internet of Things (IoT), sensor development, and prescriptive analytics. The industry is also driving a shift through wide adoption and use of Open Source code from the Apache Software Foundation. These manufacturing leaders will pave the way for others. Their ability to lead will drive cross-industry demand and growth agendas.
We hope that this report is a useful guide for companies in other industries to understand the impact of technology adoption on supply chain excellence.
While agility is bandied about in supply chain discussions, it is often meaningless because companies do not define and execute agility strategies. In this report, we share case studies of companies successfully implementing agility strategies.
Supply chain performance reporting and metrics -logistics digest 091112Thomas Tanel
Many managers see supply chain performance reporting and metrics as a huge time drain that results in a series of uncomfortable conversations and confrontations they would rather not endure. You cannot manage what you cannot measure, and your supply chain is one of the most important functions to manage. The good news is that you’re Logistics and Supply Chain Management people
are probably already doing a lot of measuring. The bad news is that they might not be measuring the right things. To measure your supply chain effectively, you must identify metrics that are appropriate for your organization and that will improve business performance.
14Kyle’s Post1. What rationale is offered by HQ Depot.docxjesusamckone
1
4
Kyle’s Post
1. What rationale is offered by HQ Depot in support of the idea of using a 3PL? Do you agree with the reasons cited for the interest in a 3PL?
HQ Depot was initially managing their transportation operations from within, but with the need to expand to new markets it would not have been feasible given the lack of logistical resources it currently has . There was also a concern the company was providing inconsistent shipping times and service reliability issues. If this expansion was going to be successful using a 3PL would meet faster and consistent shipping deadlines. HQ Depot would then be able to focus more on customer service and what they describe as its "core competency" maintaining its leadership in the office and school supply industry.
3. What steps would you suggest be considered by HQ Depot as it beings to analyze the feasibility of forming a relationship with individual 3PL providers?
As HQ Depot beings to analyze the feasibility of forming a relationship with 3PL providers, setting expectations for what the company is looking for in a 3PL. These expectations include: provide superior service and execution, trust/information sharing, solution innovation, capable technologies that executes, ongoing executive level support, and service offering that aligns with customer strategy and industry knowledge. If a particular 3PL provider cannot meet those expectations, they need to look elsewhere. Since this is mutual relationship and collaborative effort, the 3PL should also provide expectations for HP Depot.
Reference:
Coyle, J. J., Novack, R. A., Gibson, B., & Bardi, E. J. (2010). Transportation: a supply chain perspective. Cengage Learning.
Mychala’s post
What rationale is offered by HQ Depot in support of the idea of using a 3PL? Do you agree with the reasons cited for the interest in a 3PL?
With HQ wanting to expand their reach into the market but not having access to the logistics to expand it would make sense for them to want to use 3PL. With a third-party logistics HQ would not have to worry about transportation, warehousing, distribution, and financial services. The rationale behind the decision was based on HQ wanting to maintain their status on their shelf-stable juices, while being able to strengthen that core. HQ wants to expand their logistics network. Also, HQ would be able to centralize their transportation operations.
What steps would you suggest be considered by HQ Depot as it begins to analyze the feasibility of forming a relationship with individual 3PL providers?
· Perform a strategic assessment- HQ needs to view the options and locations of various 3PL’s to find which would fit more with their goals
· Decision to form a relationship- HQ would then decide which 3PL’s would suit their needs and goals. And contact their agents for meeting and discussions.
· Evaluate alternatives- an in depth look at all the competing 3PL’s. Which 3PL’s are going to align with the A: HQ’s needs and priorities a.
2. TABLE OF CONTENTS
3 Introduction
4 Analytics considers the continuous flow of talent through a business
5 Insights delivered through the talent supply chain analytics portal
6 Supplier rationalization and optimization – the why
7 Using Pareto Analysis – the how
8 Client’s supplier scorecard summary – actionable insights
9 Comparing suppliers by KPI interrelationships – the action plan
11 Supplier scorecard across programs
12 Conclusion
2
3. Few companies can
succeed without having
the right people in
the right place at the
right time.
The use of contingent labor is
expected to continue to grow as
organizations look to capitalize on
the use of all talent types to increase
their competitive position within
the market. In a recent survey from
Harvard Business Review Analytic
Services, it was found that “some
70 percent of respondents agree
that using external workers allows
their organization to meet market
demands and maintain efficiency
that would otherwise be difficult.
And more than half see the value of
the external workforce increasing in
the next several years”.
The good news is that we are
immersed in an era of “big data”.
Organizations have access to more
information about their external
workers and talent suppliers.
Through more in-depth analysis
of this information, organizations
can develop actionable insights,
while aligning only the top-
performing suppliers against their
organizational need.
However, many companies develop
these insights within a narrow band.
They use analytical tools to examine
inward-facing factors looking at
metrics, such as how quickly they
can fill roles or at simple bill rates or
mark-ups, independently. Leading
companies are instead tapping
into higher-value analytics activities
that evaluate the composition of
their supply chain — and ultimately
ensuring that they have the
most competitive suppliers for
their industry.
3
69%
say using external workers
allows our organization to
meet market demands and
maintain efficiency that
otherwise would be difficult.
66%
say using external workers is
beneficial to our organization
and the external workers.
53%
say using external workers
allows us to bring in expertise
that our full-time staff lacks.
Source: Holistic Talent Supply Chain Management,
a Harvard Business Review Analytic Services Report
4. ANALYTICS CONSIDERS THE
CONTINUOUS FLOW OF
TALENT THROUGH A BUSINESS
W
hen focused on optimizing
the supply chain for
contingent labor, an organization
should look outside its own doors
and rigorously evaluate its activities
across the entire talent supply chain
and against global best practices.
Today, successful companies are
realizing that effective planning
involves making the most out of big
data — which previously seemed
unworkable — and making decisions
based on that.
Big data, along with the latest data
analysis techniques, is key to gaining
new insights. Widening the lens to
focus on the whys and the hows,
along with performance metrics
and benchmarking of talent
suppliers, is pertinent to establishing
sought-after predictive insights
and, ultimately, the most effective
supply chain.
The KellyOCG®
approach to
analytics enables a smarter, more
data-driven methodology to create
and manage your talent supply
chain, and delivers actionable
insights to improve talent
management practices.
4
Successful
companies are
realizing that
effective planning
involves making the
most out of big data.
5. Talent Supply Chain
analytics ensures
effectiveness: that
you are doing the
right thing.
INSIGHTS DELIVERED THROUGH
THE TALENT SUPPLY CHAIN
ANALYTICS PORTAL
T
here is a distinct difference
between the reports provided
by a managed service provider (MSP)
through a vendor management
system (VMS), and the reports
provided through the talent supply
chain analytics portal. Within a
VMS, you have defined views
with a focus on spend visibility, as
well as the who, what, where, and
when. Typically, MSP-driven reports
are aggregated by segment (i.e.,
business unit or manager) and
focus on a single key performance
indicator (KPI). Essentially, you are
viewing the outcome of “Who spent
what where?”
KellyOCG does not limit its focus
to the who, what, where, and when.
Instead, the emphasis is placed
on how and why. The starting
point is a premise rather than
a predetermined view. Data is
used — whether statistical, visual,
predictive, or benchmarking —
to understand and analyze any
interrelationships. Validation is first.
Then the hypotheses are tested.
KellyOCG looks for insights to drive
optimization on behalf of our clients.
VMS/MSP reporting helps you
achieve efficiency: that you’re doing
things right. Talent supply chain
analytics ensures effectiveness: that
you are doing the right things. As
your program model matures and
process improvement continues,
these analytics will validate and
assist in determining the next steps
of program evolution.
5
6. SUPPLIER RATIONALIZATION
AND OPTIMIZATION
– THE WHY
K
ellyOCG has a refined and
proven process to ensure that
its recommendations encompass all
available areas of evaluation to make
the best optimization decisions.
First, an evaluation of how much of
an organization’s spend is attributed
to the top suppliers is performed.
The next step is to then look at
the supply chain to establish how
well they are performing based
on established KPIs, with a focus
on efficiency and effectiveness. To
assess whether their performance is
consistent across multiple programs,
and to see if any anomalies must be
considered, a comparison in how
they have delivered for multiple
organizations must be performed.
Collectively, this comprehensive
view will drive recommendations
for supplier optimization, which
traditionally drives 5% - 10% in
measurable cost savings. Savings
are more considerable and the need
greater as services procurement
and statement of work spend are
managed within the program.
6
This comprehensive
view will drive
recommendations
for supplier
optimization.
FIGURE 1
7. USING PARETO ANALYSIS
– THE HOW
T
he objective is to understand
how to design the supply chain,
and to rationalize and optimize
the suppliers within the program.
To start, a common statistical and
procurement technique, the Pareto
Analysis, is used. In this case,
the Pareto Analysis focuses on
understanding who the top suppliers
in the supply chain are, enabling
the understanding of their impact
(i.e., the percentage of spend or
headcount they contribute).
The process begins by visualizing,
confirming, and validating the
current state. Next, the suppliers
that may be rationalized are selected
for further evaluation.
For clarity, the following provides
an illustrative client example.
In figure 2, it is shown that 55%
of the spend within this client’s
program equates to 28 suppliers.
(Note that the orange bars indicate
diversity suppliers.)
7
When looking at the number of
suppliers making up 80% of the
spend, it is 139 suppliers. This
means the additional 25% of spend
(between 55% - 80%) is made up by
111 more suppliers — a substantial
tail to begin to optimize. Through
previous client engagements, it
was also found that cycle time was
reduced by rationalizing the tail.
FIGURE 2
8. 8
CLIENT’S SUPPLIER
SCORECARD SUMMARY
– ACTIONABLE INSIGHTS
I
t is now apparent that, within
this example, a large number
of suppliers are contributing only
small amounts of the total spend —
creating a tail which is the focus on
optimization. To begin the process
of optimizing the talent supply
chain, supplier scorecards must be
evaluated. The interest is not just in a
“score” (i.e., which supplier hired the
most). What needs to be understood
are the impacts and subsequent
insights for the suppliers across many
KPIs, subsequently benchmarking the
suppliers to see how they compare
to one another. For suppliers within
managed programs, the following
KPIs are critically important:
• Response rate
• Shortlist rate
• Interview rate
• Hires (hit rates)
• False starts
• Compliance to rate card
• Contractor evaluation scores
• Assignment completions
(measures quality)
Each KPI has an assigned goal. For
instance, suppliers should respond
to an accepted order 60% of the
time. A score is also provided:
points correlating to that goal. In the
scenario illustrated below, you see
that the shortlist KPI and the hires
KPI, equally scored at 20 points, are
the most important KPIs.
Applying this methodology, the
optimal suppliers will be illustrated.
It showcases where they are
performing and not performing,
furthering the progress along the
talent supply chain optimization
journey. Additionally, suppliers
are benchmarked against each
other and ranked by KPI or the
composite score.
FIGURE 3
9. This talent supply
chain analytics
visualization is
a true indication
of the supplier
partnerships.
COMPARING SUPPLIERS BY
KPI INTERRELATIONSHIPS
– THE ACTION PLAN
I
t is now understood how each
supplier scores against a KPI,
and the suppliers can be sorted
and ranked based upon individual
KPIs or the total composite score.
So: If someone responds all the
time, does that make them a great
supplier? Or are they spamming us
with resumes, making us inefficient?
The true answer in supplier
optimization is in the inter-
relationships between KPIs.
KellyOCG goes beyond summary
scoring and reporting by using a
proven analytical approach.
The figure below compares selected
scatter metrics — hit rate and
response rate — for an organization.
That is: Are our suppliers making
hires and responding to us? Or:
Is a supplier who responds all the
time just sending in sub-optimal
candidates and making for busy
work without return? The goal is to
identify the supplier generating
work within the program, but
providing minimal or low-quality
candidates. Suppliers that treat
the program as a low priority and
are who not responding will also
become apparent.
9
FIGURE 4
10. Figure 4 illustrates that suppliers
average a 14% hire rate (above the
target of 10%) and a 41% response
rate (below the target of 60%).
The under-performing suppliers
are also shown here, in the lower
left quadrant. With the size of the
scattered circles indicating the
number of orders, it is evident that
there are several non-responsive
suppliers who are receiving orders
but not making hires. Likewise,
many suppliers are responding but
are not filling orders, resulting in a
waste of resources.
This talent supply chain analytics
visualization is a true indication
of the supplier partnerships, in
this case, that should likely be
optimized. Some effective suppliers
are illustrated in the bottom-right
corner of the graph. They are highly
responsive and dedicated, but not
making the median amount of hires.
Why? Are they getting the right
jobs in the right location? Are they
responding too late?
These suppliers can be selected for
a more in-depth look to understand
10
COMPARING SUPPLIERS BY KPI
INTERRELATIONSHIPS – THE ACTION PLAN
if they are hard workers that
need better alignment, or if they
are simply keeping generating
work within the program but are
incapable of providing necessary
results. On the other hand, the
suppliers in the top-right quadrant
express real dedication with above-
the-line response rates and hires.
These are the tier one suppliers.
At this point, a filter by labor
type and location will enable the
evaluation of understanding how
best to design the supply chain
around these best performers.
11. SUPPLIER SCORECARD
ACROSS PROGRAMS
A
fter looking at the suppliers
within the program and truly
identifying the poor performers that
are driving up program costs, before
making any decisions, they should
be benchmarked in comparison
to the overall supplier ecosystem
outside of the program. Is that poor-
performing supplier in your program
truly a bad supplier? Alternatively:
Could it be an intrinsic program
issue? Before action is taken with
the supplier, it is important to review
their performance in other programs
and perform a cross-program
comparison. Might their local branch
be experiencing uncommon recruiter
turnover? After all, the average
tenure of a staffing company recruiter
is six months. Or: Is there a new
recruiter who has not been properly
trained on your VMS?
The KellyOCG talent supply chain
analytics portal is a valuable tool
that allows for the analysis and
benchmarking of a program’s
supply base to a much broader
supplier ecosystem.
11
FIGURE 5
12. T
oday, high-performing
organizations have access
to more data than ever before.
As a strategic partner, KellyOCG’s
role is to ensure you examine all
available data in every conceivable
light, ultimately tapping into global
best practices through in-depth
analyses that were not readily
available before.
It’s not just about filling positions.
This fact-based approach takes
your big data and benchmarks it
against other high performers in
your industry, relentlessly scrutinizing
the raw statistics in every way
possible to yield measurable results.
Through answering the whys and
the hows, KellyOCG’s talent supply
chain analytics results in actionable
insights, enabling you to make the
big decisions in optimizing your
talent supply chain.
Immediate action drives results! When you are
evaluating the tough questions about your talent
supply chain, KellyOCG can help answer them.
CONCLUSION
12
KellyOCG consults with organizations, both with internally and
externally managed programs, in defining best-practice supplier
analysis and optimization strategies. Scorecarding tailored to
each business, as well as analytics portals used to continually
measure performance and savings, is also a strategic focus.