Supplier consolidation in a contingent workforce program is the process of outsourcing the complex and time-consuming paperwork and processes associated with onboarding, offboarding, and paying your staffing agencies.
Supplier consolidation allows your business to outsource staffing agency management and the associated administrative processes to an organization with repeatable processes and deep expertise, so that you have just one point of contact, one process and one invoice.
This provides your organization with a range of benefits, including:
1. Increased visibility
Supplier consolidation provides increased visibility into your external labor supplier base, enabling compliance and efficiency when managing your contingent workforce. In turn, this improved visibility will lead to better, long term hiring outcomes and reduced costs. Supplier consolidation solutions will provide your business with reporting and analytics so that you can identify which staffing agencies are helping you meet your workforce (and budget) targets, and those that aren’t.
2. Improved efficiency
Managing staffing agencies takes time for your team, taking them away from more important initiatives. The more vendors you have, the more work is required from your team. With supplier consolidation, you’ll be able to outsource burdensome processes and paperwork to a third-party. As a result, your organization can save time and money, allowing your internal team to focus on higher-value tasks and core competencies.
3. Reduced costs
When you outsource to an expert offering an effective supplier consolidation solution your business organization will be able to save money by identifying high rates and inefficient pricing as well as increased operational efficiency. Supplier consolidation also improves your ability to track spend, which will improve contingent workforce decision-making moving forward.
4. Faster onboarding
Not only does supplier consolidation save your organization time and money, but due to the repeatable processes, knowledge and expertise of your third-party partner you will typically be able to onboard suppliers significantly faster than you could if you tried to complete these processes and paperwork in-house.
5. Improved compliance
Similarly, supplier consolidation allows for easier standardized compliance practices across all suppliers, ensuring that all of your contingent workers are managed in accordance with applicable laws and regulations. When you don’t need to manage staffing agency compliance internally, your business will generate time, cost and headcount savings.
Supplier consolidation can deliver a number of benefits to your contingent workforce program, helping to increase efficiency and reduce costs. Interested in learning more? Get in touch with the Contrax team today.