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how to 2 create a mutually beneficial relationship with talent suppliers during an MSP implementation happy suppliers will provide a better service and be more engaged in the program the impact of MSP An MSP is a centralized approach in which a service provider oversees a client's process of acquiring and managing contingent labor. This includes optimizing the staffing supply chain, streamlining the hiring process, and integrating a vendor management system (VMS) to create efficiencies and program visibility. Its many benefits include: • Cost efficiencies Through its market expertise, an MSP provider can realize both hard and soft savings by imple- menting infrastructure and process enhancements. • Visibility and measurability An MSP provider can give full transparency of the hiring process through the use of a vendor management system. Through controls and analytics, the program can also help determine inefficiencies and gaps by measuring KPI's such as contractor performance, compliance rate, and fill ratio. • Access to talent The dedicated supply experts of an MSP provider have extensive knowledge of the labor market, the availability of talent, and the suppliers that can deliver specific profiles to ensure access to the best talent. • Compliance The provider's supply chain experts know how to mitigate risks. The hiring process is fully controlled and compliant to local legislation. engaging suppliers In our experience running MSPs, many customers prefer to onboard their current base of suppliers over new suppliers. The reason is to protect from disruption the existing contingent workforce in ongoing projects. A complete renewal of the existing supply base is simply not an option during the start of the program. However existing suppliers are usually engaged in an adhoc manner on their own terms. As part of the rationalization process under the MSP, they need to be moved from their current contracts onto new terms as part of the MSP implementation. The supply chain analysis carried out during implementation will assess existing suppliers to determine how flexible you want to be in the ensuing negotiations with them. supplier agreements Local regulation may dictate the contract structure for the engagement of suppliers. Suppliers will either contract directly with the MSP or directly with you (in which case, the MSP will have an operating agreement in place with each supplier that details the day-to-day working arrangements). Regardless of whether the supplier contracts are with you or with the MSP, it is very important for the contracts to be workable and commercially sustainable for both parties. Happy suppliers will provide a better service and be more engaged in the program. It is important to bear this in mind when considering the key terms that will go into the supplier agreements. recurring negotiation points Below are the main issues that in our experience cause the most friction during contract discussions with suppliers. Although you will need your own legal advice on the contracts in place between you and suppliers directly, here is some general advice based on our industry understanding. This advice is aimed at reducing the issues at the outset, thereby facilitating as smooth and efficient an onboarding process as possible. Local laws The agreements must comply with specific points arising under local regulations. Europe, in particular, has many different legal requirements imposed by heavy regulations on the contingent staffing industry. One supplier agreement will not fit all countries in Europe. Each country will need a locally tailored agreement. Terminology One of the biggest differences from country to country is the terminology that is used to describe the contingent workforce being hired. Because this is a very sensitive issue, it's important to ensure that there

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