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"I already have a productive master vendor program in place."
Can an MSP work without having to uproot our current vendor
relationships?
Yes. An MSP makes it possible to manage all non-employee human capital across various
geographies or vendor models. In fact, creating an MSP layer on top of an existing master
vendor program is an efficient and cost-effective way to:
• expand global reach
• increase enterprise visibility
• leverage global spend
• accommodate merger and acquisition activity
• enhance workforce planning and budgeting capabilities
master vendor programs
A master vendor program is one in which a single supplier is responsible for responding
to requisitions in accordance with a given Service Level Agreement (SLA). This model is
typically used in a situation where hires need to be made quickly or where there is high
turnover, such as in the call center and light industrial sectors.
In addition to heavy-volume, high-turnover categories, the master vendor model can also
be applied to a specific location that is in need of a high-touch, onsite resource. Today, the
master vendor model can be applied in an innovative approach by positioning the master
vendor under the umbrella of an MSP. With this approach, the MSP can act as a supply
chain manager over the master vendor, while enabling other vendors to participate in
areas outside the master vendor's expertise or coverage.
layering an MSP over a master vendor program
An MSP makes it easier for a client to bring new programs online under its current
structure, regardless of the company serving as master vendor. The client has the
advantage of program oversight, while maintaining the flexibility to utilize other delivery
models and suppliers, as required. The MSP can absorb any related programs that are
currently in place. There is no need to disrupt a successful master vendor program that is
centralized and cost effective.
An MSP can better leverage spend by managing the supply chain with a single master
vendor for all locations with similar hiring patterns or needs. An efficient MSP will
distribute requirements to as few suppliers as possible within a highly flexible model
that makes it possible for companies to better leverage their spend on a national or
global scale.
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