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Dean Tulloch 22nd Sept 2015
CONTINGENT WORKFORCEHOW PROCUREMENT DEVELOPS
SUSTAINABLE CONTINGENT WORKFORCE MODELS
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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)
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Procurement1. Value2. Cost Out3. SRM4. Demand Management5. Sourcing6. Procure to Pay
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Methodology1. Category Planning2. Stakeholder Management3. Initiative Sell and Sign off4. Projects5. Execute6. Benefits Realisation
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Category Management1. Spend Analysis – include Pareto 80/202. Market Analysis3. Supplier Analysis4. BU Issues/Drivers and Opportunities5. Contracts Analysis6. Risks7. Initiatives
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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
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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
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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
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Statements of Work1. Contractors fulfilling SOWS ?2. Process – easier?3. Headcount4. T&M v Deliverables5. Supply chain of Suppliers!
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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
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Key Tips1. Build working groups and stakeholder
boards2. Get them involved and aligned early3. Create a Category Plan4. Revisit Category Plan5. Celebrate Success