A Nontraditional Approach to MSP Staffing Supplier Sourcing Delivers Business Results
At this year’s HRO Today Summit in Las Vegas, Nevada, I had the pleasure of watching our client Patricia LaValle-Jones, Director of Procurement for Marketing & HR Services at Sara Lee Corporation, present. On May 25th, she presented Staffing Supplier Sourcing & Management Strategy for Your MSP Program: Lessons from Sara Lee. It was a great experience to see our client stand on stage and demonstrate how unified and collaborative we are in our approach to contingent workforce and supplier management strategy.
In the session, she discussed the evolution of our staffing supplier sourcing strategy from a small network of large global staffing providers to a larger network of local staffing suppliers. When we implemented our Managed Service Provider (MSP) program in 2008, Sara Lee set supplier sourcing strategy while as the MSP we implemented and managed the supply base. As our program and partnership progressed we have been able to take the lead in setting supplier sourcing strategy.
Our supplier sourcing strategy has been driven by business owner and end-user needs: “We need more local attention.” “We need best in class talent.” “We need the temporary help yesterday.” Based on these needs and the geographically dispersed nature of our client’s staffing usage, we developed a strategy to expand our supply base. As a result of a recent sourcing initiative, we increased Sara Lee’s supply base from a handful of global suppliers to more than twenty-five suppliers. Each site has up to three suppliers, many of them local, awarded based on volume and ability to meet contractual terms.
This dramatic change has created a win-win for Sara Lee and their staffing suppliers. Local staffing providers gain new business opportunity and in return provide greater local support and a pool of pre-qualified temporary associates, “a bench”, for Sara Lee’s often last minute staffing requirements.
Additionally, this local supplier solution has allowed us to surpass our client’s savings goals – reducing spend by upwards of 8.8% and increasing supplier diversity in the process. This strategy has also yielded increases in quality of hire, fill rates, and satisfaction with supplier relationships.
How have you evolved your staffing supplier sourcing strategy to meet the needs of your business?