how procurement develops sustainable contingent workforce models - dean tulloch

Dean Tulloch 22nd Sept 2015

CONTINGENT WORKFORCEHOW PROCUREMENT DEVELOPS

SUSTAINABLE CONTINGENT WORKFORCE MODELS

Welcome to the open talent economy – a collaborative, transparent, technology driven rapid cycle way to do business

(Deloitte, Human Capital Trends, 2013)

Labour is much less about enhancing staff augmentation of keeping track of suppliers and much more about planning for the competitiveness of a network of independent contractors, consultants and SOW based projects and services

(Aberdeen Group, 2013)

Procurement1. Value2. Cost Out3. SRM4. Demand Management5. Sourcing6. Procure to Pay

Methodology1. Category Planning2. Stakeholder Management3. Initiative Sell and Sign off4. Projects5. Execute6. Benefits Realisation

Category Management1. Spend Analysis – include Pareto 80/202. Market Analysis3. Supplier Analysis4. BU Issues/Drivers and Opportunities5. Contracts Analysis6. Risks7. Initiatives

7Telstra Internal – Confidential

Spend - $XXmSuppliers - 40

Strategic Leverage

Transactional

Segmentation Analysis: Understanding which suppliers are strategic and introducing an SRM process will reduce cost, mitigate risk and stimulate innovation

Risk

Bus

ines

s Im

pact

High

Low

Manage preferred supplier spend

Build long term partnerships

Process efficiency and spot buyBottleneck

High

Manage risk & remove roadblocksSpend - $XXMSuppliers – 12?

Spend - $XXMKey Supplier

Key Supplier

Contract Labour

EVPSearch

SRM

Continuous Improvement

Thought Leadership

Manage supplier risk and performanceTemp Labour

Suppliers,

Monitor volume and benchmark pricing where possible

Recruitment

Screening

Temporary Labour1. Governed by Modern Awards2. Model – Panel, MV / NV, MSP3. Technology – state and award inconsistency4. Offshoring appetite5. FWA and Legislative changes6. M&A activity7. Spend typically less than Contract Labour8. Be wary of undercutting

Contract Labour1. Governed by Market Rate2. Model – Panel, MV / NV, MSP3. Technology – ATS v VMS4. Inconsistent Pay Rates – benchmarking then close management5. Payrolling solution for Directs6. Multiple margins - $ v %7. Tenure8. Requisition Process9. Non Preferred Suppliers

Statements of Work1. Contractors fulfilling SOWS ?2. Process – easier?3. Headcount4. T&M v Deliverables5. Supply chain of Suppliers!

11Telstra Internal – Confidential

IMPROVETRANSFORMYear 2

Year 3

CLEAN THINGS UP

SOURCING EVENTS

COMMERCIAL RENEGOTIATIONS Margins Workcover Payrolling

PROCESS IMPROVEMENTS

STABILISE

Year 1

RECRUITMENT DELIVERY MODEL – based on volumes, anticpated demand, appetite for vendor partner, global opportunities, expertise, etc

CONTRACT LABOUR – RATE MANAGEMENT

CONTRACTOR REFERRAL PROGRAM

TACKLE STAFF AUGMENTATION

OFFSHORING OPPORTUNITIES

TECHNOLOGY – will drive the next level of insight

NEXT GEN DELIVERY MODEL

Roadmap

Key Tips1. Build working groups and stakeholder

boards2. Get them involved and aligned early3. Create a Category Plan4. Revisit Category Plan5. Celebrate Success

dtulloch@au1.ibm.com – 0417 073 100

DEAN TULLOCH