how to
series
how to ensure supply chain optimization
in a managed services program
As a buyer of a managed services program (MSP),
you've gone through the process of building a
business case, selected the appropriate provider and
achieved a successful implementation. The suppliers
are onboarded, and talent is delivered to the lines of
business as needed. What now? How can you know
if suppliers are performing well? How can you ensure
they deliver not just headcount in a timely manner but
also high-quality workers at a fair price?
To ensure your supply chain is optimized, focus on the
two pillars of supplier relationship management:
• Ensuring a strong commitment from all the
parties involved
• Building consensus and, when possible, codifying
the interaction between the parties
Supplier relationship management is the process for
managing these two critical aspects of the interaction
between you and the supplier. A fundamental part of
this exercise is the supplier performance assessment,
which is measuring, analyzing and managing a
supplier's ability to comply with and, preferably,
exceed, its contractual obligations.
Often, MSP buyers mistakenly think that supplier
management begins after an MSP has gone live, but
in fact there is much work to do beforehand. The
business case for implementing a program requires the
customer to first establish its goals and determine how
supplier management can help attain them. Whether
it's to achieve cost savings, process optimization,
compliant practices, spend transparency or enhanced
talent quality, the goals are typically contained in an
annex service level agreement and must be Specific,
Measurable, Achievable, Relevant and Timely (SMART).
Agreements should be fact-based, objective and
aligned with program goals. With these in place, you
In the previous three installments of this series, we examined how to
outsource contingent workforce management, how to select the best
service provider and how to create a mutually beneficial relationship.
To achieve the best program, you want to make sure your supply chain
deliver not only cost efficiency but also the highest-quality talent.
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