kellyocg alejandro builes

Finding Your True North in Services Procurement

KellyOCG

Alejandro BuilesPrincipal Consultant & COE Lead – Services Procurement

53rd Edition | 2018 | DC

Sourcing Industry Group’s Global Executive Summit

Alejandro BuilesPrincipal Consultant & COE Lead – Services Procurement

Finding your true northIN SERVICES PROCUREMENT

© 2018 Proprietary and Confidential to Kelly Services | 3

72 years designing and managing workforce solutions.

$8.3B spend under management 408,900+ contingent labor assignment 4,600 supply chain partners


Disruption is everywhere.

“Every CPO Should Know These 7

Contingent Workforce Trends”

“Europe’s Thirst for Cheap Labor Fuels a

Boom in Disposable Workers”

“As Industrial Supply Chains Undergo Digital Transformation, Talent Gaps Persist”

“Traditional Workforce Models are Constraining Business Growth – Being the Solution, Not the Problem”

“Uncertainty Permeates Labor & Employment Landscape, According To Bloomberg Law’s 2018 Outlook”

“The Power Shift Of Labor: Who Controls The Work Schedule?”

“AI and Human Understanding Will Win the War for Talent”

“Talent search: As need for expertise grows, so do staffing challenges”

“Hiring Pressures Mount As Talent Supply Tightens”


There are least four generations of talent in the workforce today –

each experiencing your organization through their own lens.

Born 1946-1963

Age 55-72 in 2018

Individualistic

Loyal

Career-focused

Born 1964-1979

Age 39-54 in 2018

Entrepreneurial

Self-reliant

Globally-minded

Born 1980-1995

Age 23-38 in 2018

Group-oriented

Idealistic

Socially-conscious

Born 1996-2010

Age 8-22 in 2018

Realistic

Aware

Technology Native

BABY BOOMERS GEN X GEN Y GEN Z


Today’s Objectives

• The World of work continues to rapidly

evolve

• Matching business strategies with the right

talent is critical to long term success

• It is difficult to optimize demand and supply

with a traditional approach in Services

Procurement

CHALLENGES

• A “Business First” concierge approach to driving

buying channel optimization

• How to deliver policy compliance while meeting

business objectives

• How to deliver sustainable demand management and

negotiated savings

• How to leverage program and behavioral data to create

meaningful analytics

YOU WILL LEARN


CHALLENGES

Today’s Focus

CONSEQUENCES

• Policies and strategies focused on procedural controls vs meeting demand

• Requisitioner’s preconceptions of how labor “has always been bought”

• Alienate the requisitioner

• Lack of program adoption

• Increased cost structures

INEFFICIENT

PROCESSES

• Lack of understanding and access to different labor channels

• Inexperience in managing work in an outcomes-based environment

• Lack of utilization of diversetalent and skills

ACCESS

TO TALENT

• Focus on data vs analytics• Holistic opportunities

not identified

INEFFECTIVE

ANALYTICS


Overcoming the challenges…

FOCUS ON

THE END USER

INCREASE

ACCESS

TO TALENT

LEVERAGE

INSIGHTFUL

ANALYTICS



FOCUS ON

THE END USER

• End-user experience

drives adoption.

• Adoption ensures

compliance.

• Compliance

accelerates value.

INCREASE

ACCESS

TO TALENT

LEVERAGE

INSIGHTFUL

ANALYTICS


THE CASEFortune 50

Pharmaceutical

C H A L L E N G E S

Fortune 100 company with ~10B+

in Services Procurement spend

Traditional sourcing and

negotiations had not yielded

significant savings

With limited addressable spend,

client turned to demand

management levers to drive savings

Client launched new spend policies,

however they had significant

challenges with driving compliance

S O L U T I O N

KOCG created an operational model that would ensure compliance to spend policies and enable demand management savings

KOCG launched our Guided Spend solution with global team of SME’s to serve as pre-approval stage gate

Our BPM enabled decision tree technology allowed our global team to deliver demand management savings while guiding requisitionersto meet their business needs through the most appropriate buying channels

R E S U L T S

5 categories managed –Professional Services/SOW, Temp Staffing, Mgmt. Consulting, Memberships & Subscriptions, and Events

~$1B in spend under management, across all global regions

Our program enabled client to exceed 2017 savings STRETCHgoal by $11M

Demand Management savings across client BUs of ~8-10%

FOCUS ON THE END USER


DRIVING

BUSINESS

RESULTS

A P P R O A C HFocus on defining outcomes vs

how it’s always been bought

D E L I V E R A B L E SPremium End User Experience

Increased Program Adoption

Drives Compliance to Policyand Strategies

Optimized Savings/Value Creation

“I have a need for contractor/services…”

“Let’s identify your optimal solution”

Temp

Staffing

Project

Services

Outsourced

Services

Client’s Requistioner Concierge Solution



• Basic principle of guiding to “best

fit” labor channel in order to open

up a PO

• Limited additional benefits to

downstream purchasing

effectiveness

TYPICAL CONCIERGE APPROACHEVOLUTION

OF THE

CONCIERGE

APPROACH



• Introduces pre-approval and

controls earlier in purchasing

life cycle

• Leverages technology and SME to

“get it right the first time”, while

driving compliance & value

GUIDED WORK SOLUTIONEVOLUTION

OF THE

CONCIERGE

APPROACH



INCREASE

ACCESS

TO TALENT


FOCUS ON

THE END USER

LEVERAGE

INSIGHTFUL

ANALYTICS

INCREASE

ACCESS

TO TALENT

How you access

expertise on-

demand could be

the game changer.


Nearly

1/3workers are free agents.

OF TRADITIONAL WORKERS

say the recent economic environment has encouraged them to give more consideration to free agency as a career choice.

58%

than those working as traditional employees.

MORE LIKELY TO HOLD HIGHER DEGREES

48%FREE AGENTS ARE

than those working as traditional employees.

MORE LIKELY TO POSSESS PT SKILLS

69%FREE AGENTS ARE

saying free agency is a lifelong career choice.

ARE IN IT FOR LIFE

56%OF FREE AGENTS

NEARLY1 IN 3

WORKERS ARE FREE AGENTS

INCREASE ACCESS TO TALENT


STEP 1 Understand the

what, howand where

STEP 2 Source and

acquireExternal Talent

DEFINING TALENTNEEDS & SOURCE

HOWEngagement Models

WHERESources of Talent

WHATTypes of Work



The what, where, and how of acquiring external talent

HR

Engineering & R&D

Corp & Finance

Marketing & Sales

Facilities

Manufacturing & Logistics

IT

WHATTypes of Work



OutsourcedServices

Project ServicesTemp StaffingHOWEngagementModels

TALENT SUPPLY CHAIN

The what, where, and how of acquiring external talentINCREASE ACCESS TO TALENT

HR

Engineering & R&D

Corp & Finance

Marketing & Sales

Facilities


IT

WHATTypes of Work


OutsourcedServices

Project ServicesTemp StaffingHOWEngagementModels

TALENT SUPPLY CHAIN

The what, where, and how of acquiring external talentINCREASE ACCESS TO TALENT

HR

Engineering & R&D

Corp & Finance

Marketing & Sales

Facilities


IT

WHATTypes of Work

Dire

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So

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Ind

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Co

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LEVERAGE

INSIGHTFUL

ANALYTICS


FOCUS ON

THE END USER

INCREASE

ACCESS

TO TALENT

LEVERAGE

INSIGHTFUL

ANALYTICS

Insight provides the

route to the best

talent…

Outcome thinking

ensures optimal ROI.


DEFINING TALENTNEEDS & SOURCE

HOWEngagement Models


WHATTypes of Work

THE MISSING

ELEMENT

WHYYou Buy Services

LEVERAGE INSIGHTFUL ANALYTICS


In summary…

LEVERAGE

INSIGHTFUL

ANALYTICS

Insight provides the

route to the best

talent…

Outcome thinking

ensures optimal ROI.

INCREASE

ACCESS

TO TALENT

How you access

expertise on-

demand could be

the game changer.

FOCUS ON

THE END USER

• End-user experience

drives adoption.

• Adoption ensures

compliance.

• Compliance

accelerates value.


Thank you…

For further questions, please feel free to contact me

Alejandro Builes,

Principal Consultant & COE Lead – Services Procurement

[email protected]

mailto:[email protected]

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Alejandro Builes,

Principal Consultant & COE Lead – Services Procurement

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