Issue link: https://insights.randstadsourceright.com/i/750312
2 4. Measuring, reporting and sharing performance data 5. Conducting supplier performance review meetings 6. Tracking and reporting action points (goals) including improvement plans 7. Reviewing and resetting goals As stated earlier, a critical part of supplier management is creating realistic SLAs during contract negotiations. The SLAs will be critical in driving value from the MSP, especially as the service provider looks to exceed expectations. Also critical is aligning KPIs to the SLAs because they will indicate progress towards a desirable outcome. Strategic KPIs monitor the implementation and effectiveness of an organization's strategies, determine the gap between actual and targeted performance and establishes organizational effectiveness and operational efficiency. Therefore, it is necessary to determine which KPIs should be closely tracked. Since MSPs rely on a Vendor Management System (VMS) to administer the program, it can be used to perform some of the heavy lifting in tracking KPIs. Some throughput can be measured automatically, including time-to-submit, fill ratio, rate compliance and the number of job postings responded to. One difficult indicator to measure is cost savings, which must be well-defined to avoid misunderstanding. can effectively begin optimization of the supply chain and reap the benefits. By measuring the most important goals and Key Performance Indicators (KPIs), the MSP program can readily determine whether suppliers meet the established criteria. Regular communication with suppliers provides transparency for their performance and helps them make improvements. The data gained from measuring performance also helps to segment suppliers. You may want to give top performers priority in filling roles, especially critical positions that require only the highest-quality talent. Top-tier suppliers may be able to deliver the resources needed not only more quickly but also consistently, which is the hallmark of a dependable partner. how to effectively manage An effective supplier performance plan should address the entire supplier life cycle. This consists of the following seven steps: 1. Defining the supplier performance strategy, including tools and process 2. Defining supplier performance evaluation criteria 3. Collecting and analyzing performance data via scorecards and surveys Managed services programs are 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 The benefits are many: cost efficiencies Through its market expertise, an MSP can achieve both hard and soft savings by implementing infrastructure and process enhancements. visibility and measurability An MSP offers full transparency of the contingent talent acquisition process through the use of a VMS. Through controls and analytics, the program can also help determine inefficiencies and gaps by measuring KPIs such as contractor performance, compliance rate and fill ratio. access to talent The dedicated supply experts of an MSP have extensive knowledge of the labor market, the availability of talent and the suppliers for specific scarce 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 regulations. The business impact of MSP www.randstadsourceright.com