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how to create a mutually beneficial relationship with talent suppliers during an MSP implementation 3 cannot be any misinterpretation around the type of worker being supplied. Data protection Another sensitive issue is around data protection. Some countries have far stricter requirements that carry heavy sanctions. Because suppliers are considered to be data controllers, it is important that they have a comfort level with respect to their obligations to protect worker data. This means they require quite specific wording in their contracts to ensure this. These tend to differ from country to country, depending on how each jurisdiction has implemented the Data Protection Directive. Liability for contingent workers Few suppliers feel comfortable being liable for events occurring outside their day-to-day control. Most of the time contingent workers will be providing services under your management and supervision so suppliers will not readily agree to take responsibility for the acts and omissions of the workers. It is also not usual for the suppliers' insurance to cover this because it is out of their day-to-day control. Capping/limiting liability Few suppliers will accept unlimited liability under a contract. Most will expect to see some sort of cap and an exclusion of liability for indirect/ consequential losses. Insurance The types of insurance that suppliers typically carry vary country to country, depending on what is legally mandated and what is industry standard. Smaller suppliers are unlikely to have high-value insurance coverage, particularly for professional indemnity coverage. Requiring suppliers to name you as an additional insured can also be problematic and expensive for them, so this may be difficulties in the contracting process. Payment terms The key point here, particularly for smaller suppliers, is that suppliers must pay their workers prior to their receipt of payment from you (or us as the MSP). Workers are typically paid weekly, and this can create a lot of cash flow pressure on suppliers if they are receiving corresponding payment on a monthly (or longer) cycle. The onboarding of suppliers in MSPs requires custom- ization based on country and customer. Supplier contracts must be fit for purpose. Moreover, contracts should contain reasonable clauses that are acceptable to both the supplier and the customer. This will facilitate the onboarding process and, ultimately, make suppliers feel comfortable working to the terms in place with you or the MSP. In turn, a better relationship will lead to better service and more productivity from your supply chain. n about the author Read more about how MSP can benefit your business at: www.randstadsourceright.com Erwin Duits is Supply Chain Manager, EMEA for Randstad Sourceright. He has extensive experience in procurement and has helped many multinational organizations improve their procurement processes and achieve a competitive business advantage.

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