Issue link: https://insights.randstadsourceright.com/i/853228
| 3 "We want vendor-neutral management of our suppliers." What type of vendor-neutral supply chain management provides the best value? The goal of vendor neutrality is to create a competitive environment in which all vendors have an equal opportunity to put forth their contingent workers to fill a client's staffing requirements. In reality, there are varying degrees of vendor neutrality. It is important to understand these subtleties when making a case for or against a vendor-neutral approach. It is also important to understand the foundations of MSP supply chain management. the basics of human capital supply chain management Supply chain management involves an MSP agreement that addresses all aspects of managing a flexible workforce. The MSP oversees the use of contingent and contract labour, as well as the effectiveness of the staffing companies tasked with supplying talent. The staffing companies, in turn, are the suppliers in this process. The supply chain administrator (MSP) may also be a supplier in that chain (a staffing company). The complexity of the labour marketplace often requires some overlap between the two roles. Many of today's best staffing companies are also MSPs taking on the role of supply chain administrator. While this would seem to favour the MSP provider, there is another factor to consider: technology. Today's Vendor Management Systems (VMS) ensure transparency and compliance and, therefore, competitive neutrality. As a result, an MSP will allow clients to benefit from a transparent and competitive supply chain environment managed by a qualified and experienced provider. varying levels of neutrality Levels of neutrality vary according to client needs and generally consist of two types: • pure vendor neutrality: MSP supply chain management without any MSP-affiliated staffing company participation • MSP neutrality: MSP supply chain management with unbiased participation of an MSP-affiliated staffing company MSP with unbiased staffing component: a cost and quality benefit While there is no single approach, many companies are recognizing the value of balancing neutrality with supplier expertise. They can often structure better terms by underwriting some of the MSP costs with staffing fees. It is a way to better leverage spend and ensure quality by working with fewer vendors and releasing requisitions to the broader supplier base as required. 1