In a recent survey carried out by Supply Management (page 10, 2nd November issue), 100 buyers were asked does procurement have control of Temporary and interim agency staff? 56% said NO!
A follow on article (Page 13) quoted that that in the UK, local government spent £2.2bn ($4.4bn) per year on temporary staff. This accounted for 10% of the UK’s temporary labour market. In the earlier article it is suggested that the best way to handle this spend was to create a managed service between your organisation and the agencies.
What caught my attention is not the overall value of this spend because if Public sector accounts for 40% of GDP then this figure is low and only likely to grow. However what is astonishing is that eSourcing is not being recommended as a method to deliver results.
The benefits of esourcing on this category are even more pronounced. It is so often the case there are so many suppliers being used by HR that procurement are unable to unpick the spend. The problem is compounded by the poor relationship between HR and Procurement.
eSourcing will help both procurement and HR to qualify the bidders prior to the start of the live event and get them to sign up to your terms. In fact it is not unusual to find 70 suppliers and numerous delivery points. In such circumstances the only realistic way of leverage savings is through eSourcing!
However I think the key here is the relationship between HR and procurement (in much the same way as I discussed in an earlier blog) but eSourcing is an excellent way to reach out internally across the organisation. eSourcing would give HR even greater visibility and input whilst allowing procurement to have a better understanding of the type of spend and deliver great savings back to the HR department.
56% of the respondents are missing a real opportunity!