close

Procurement

Big Trends and Predictions for 2024 (Upcoming Webinar)

Uncategorized by Christopher J. Dwyer on

The procurement function plays a critical role within the Future of Work movement. This business unit, in addition to their typical, operational prowess in optimizing spend management and supply management, also holds responsibility for influencing extended and contingent workforce management and its many links to the ways enterprises drive value from their non-employee talent. Ardent Partners and the Future of Work Exchange, in partnership with Beeline and iValua, are excited to host an exclusive webcast tomorrow focused on the big trends and predictions that will shape 2024 for this crucial enterprise function.

Andrew Bartolini (Ardent’s Chief Research Officer), Brian Hoffmeyer (SVP of Market Strategies at Beeline), and Vishal Patel (iValua’s VP of Marketing) will join me for a spirited discussion on hot-button topics such as inflation, economic conditions, the talent wars, extended workforce growth, direct sourcing, and the 2024 impact of artificial intelligence on business operations. Join us tomorrow (Thursday, February 1) at 10am ET. You won’t want to miss this event!

read more

HR and Procurement Align for the Future of Work

Business LeadershipContingent WorkforceGeneral InsightsHRProcurementTalentTalent AcquisitionTechnology and Innovation by John Yuva on

It makes sense to assume that the ownership of Future of Work execution rests in the hands of HR executives. With much of the focus on total talent management and talent acquisition strategies, HR spearheads much of the decision-making in those areas. However, another business function also plays a critical role in the Future of Work paradigm — procurement. Shifts in global supply chain dynamics and the transition from cost- to value-based supplier management, means Chief Procurement Officers and their teams are well-positioned to support Future of Work initiatives.

Traditionally, procurement focused on cost savings in the supply base and was measured against those numbers annually. However, over time, CPOs realized the criticality of supplier relationships and the resulting innovations that enabled greater marketplace competitiveness. Rather than squeezing pennies from suppliers, the relationships evolved into collaborative, value-added partnerships.

With a value-based approach, procurement is positioned to lead and support various aspects of Future of Work strategies. Let’s look at what both procurement and HR core enterprise contributions entail, followed by how the two functions intersect to complement Future of Work initiatives.

Procurement Brings Cross-Functional Knowledge and Expertise

In terms of its enterprise reach, procurement is a cross-functional partner to many departments, managing critical supplier contracts and relationships. New product development activities, digital transformation initiatives, and strategic sourcing measures all involve procurement’s insight and expertise. What makes procurement such a valued partner is its enterprise knowledge and involvement. Whether it’s sourcing services and raw materials or overseeing essential negotiation, contracting, and payment processes, CPOs and their teams respond to the pulse of the organization.

Procurement also provides vital market intelligence around emerging trends and supply base resources. Enterprises are now always thinking about the next innovation and associated resources. Where do those concepts come from? Which suppliers are required to execute such initiatives? Who will manage these relationships to ensure the greatest value within the budget? What supply chain considerations must be addressed? All these questions involve procurement’s input and, in many cases, direct involvement and oversight.

HR Maintains Workplace Consistency and Execution

Human capital is the competitive differentiator for today’s enterprises.  And the Future of Work movement represents one of, if not the most, transformative periods in HR’s history. HR executives must balance in-house, remote, and hybrid work models alongside the essential integration of the extended workforce and the technologies to streamline those processes. Visibility into total talent management is imperative to ensure the needed skillsets, not just a headcount, are accounted for and available. This is crucial to executing next-level innovative planning.

When it comes to talent acquisition and management, HR owns this responsibility within the organization. Establishing talent pipelines using direct sourcing, talent marketplaces, digital staffing, and talent communities contributes to best-in-class recruiting. Like procurement, relationship building with in-house and contingent workers plays a major role in talent intelligence.

It is also HR’s role to establish consistency regarding onboarding processes and policy guidance. Talent retention strategies begin during the candidate experience phase and continue throughout an employee’s tenure with the enterprise. Consistency in how HR policies are communicated and enforced is also important to retention goals and healthy employee well-being.

Intersection of Procurement and Human Resources

With the essence of procurement and human resources laid out, where do these two functions intersect to leverage their strengths with Future of Work initiatives? Several areas can benefit from procurement’s involvement, allowing HR to tightly focus on its core capabilities.

Sourcing expertise allows relationship building. Human resources rely on a vast supplier network for total talent management requirements. Procurement can lead the search and selection of a managed service provider (MSP), for example. Expertise with supplier selection and relationship management pays dividends when procurement leads this effort — cost awareness, contract management, payment efficiencies, and relationship building with the MSP and other vendors.

HR can then focus on talent strategy and building relationships with candidates, full-time employees, and contingent workers who are users of the technologies. Any functional issues are reported to procurement to address with the supplier. Procurement should also collaborate with IT to ensure recruitment and talent management applications and platforms (e.g., ATS and VMS) integrate well with the larger enterprise network.

  • A centralized, single-view supply base adds efficiencies. Centralizing the supply base by integrating HR’s suppliers provides procurement transparency into those vendors, leading to cost efficiencies in scale and scope, as well as providing consistency in supplier management. This strategy is particularly important for global enterprises where regional locations may contract for the same technologies with the same or different vendors.
  • Expand talent intelligence in the enterprise. For procurement to best serve HR in technology selection and supplier negotiations, CPOs and their teams must have workforce intelligence as part of those processes. Thus, collaborate with HR to understand the talent needs of the enterprise. Where are there gaps in specific departments? Are there major initiatives with vacancies in key roles? Does the organization need additional support for promotional or seasonal purposes. Procurement complements HR in this effort because of its cross-functional relationships and deep understanding of operations and ongoing product development. Leverage those relationships to glean insight into talent issues and where the organization could use support. Talent committees with representation from various business units can also transform talent intelligence into an enterprise-wide strategy.
  • Share risk mitigation responsibilities (and harness the collective power of artificial intelligence). A close collaboration between HR and procurement means sharing information to mitigate risk. Much of HR is technology driven — for example, utilizing digital platforms for total talent management/intelligence as well as Industry 4.0 technologies (e.g., artificial intelligence, machine learning, and predictive analytics) to anticipate potential workforce challenges. HR is becoming more proactive in assessing and planning against those risk scenarios. Procurement is also well-versed in the use and potential of AI and predictive analytics. Sharing how each department utilizes technology applications and platforms for risk mitigation is essential. Where do opportunities exist to further leverage AI to achieve talent management objectives? How far can predictive analytics provide mitigation against critical talent shortages or succession dilemmas? Imagine using a digital twin to simulate the workforce needs in the next decade. With both HR and procurement accountable for risk mitigation, it becomes an enterprise imperative that spreads across the organization.

Ultimately, HR and procurement need to deliver on enterprise objectives. HR must secure the talent to deliver competitive workforce outcomes, while procurement produces supplier results based on value-added solutions. Both HR and procurement have complementary goals and objectives that span the enterprise and supply base. It’s only natural that these two business units collaborate. Alignment is inevitable. Success is essential.

read more

Procurement 2023: Big Trends and Predictions

Business LeadershipEventsProcurementTechnology and Innovation by John Yuva on

For the past decade, Ardent Partners analysts Andrew Bartolini (Chief Research Officer) and Christopher J. Dwyer (SVP of Research and Managing Director of the Future of Work Exchange) have taken executives on a late January ride through the big trends shaping the business arena and the predictions that could come as a result.

2023 will be no different, as Bartolini and Dwyer will join Beeline and iValua for a lively discussion on Thursday, January 26 (10am ET) regarding the big trends impacting both the procurement arena and Future of Work movement right now…and what’s just up ahead for these two distinct areas in the year ahead. Join us as we discuss:

  • How economic factors will impact the procurement function in both the short- and long-term.
  • Why the extended workforce will play a pivotal role in business agility.
  • How next-generation technology and innovation are driving enhanced value to the modern enterprise, and;
  • The big Future of Work predictions that will shape enterprises operations in the year ahead.

Click here to register for this exclusive webcast. Hope to see you there!

read more

Beeline to Acquire Utmost: Extended Workforce Tech as a Future of Work Nexus

Solution ProvidersTechnology and Innovation by Christopher J. Dwyer on

When Stone Point Capital acquired Vendor Management System (VMS) giant and extended workforce platform Beeline back in the spring, CEO Doug Leeby alluded to the fact that the transaction and new ownership would allow the most mature independent provider of VMS technology to be more active and more aggressive in the software acquisition market.

Today, that first domino fell for Beeline, as they have announced plans to acquire fellow extended workforce solution provider, Utmost.

Utmost, founded in 2018, became a growing force in the VMS solutions market over the past couple of years due to its progressive and strategic approach towards extended workforce management and the convergence of HR- and procurement-led functionality, buoyed by its dynamic technology architecture. The Utmost platform boasts a wealth of innovative modules, including an omni-channel talent sourcing solution (“Front Door”), Global Workforce Intelligence (enabling true total talent intelligence), a reimagined services procurement tool, and a burgeoning talent technology ecosystem. For Beeline, this represents a robust opportunity to capture small- and mid-sized extended and contingent workforce programs by tapping into the unique nature of Utmost’s progressive functionality.

“The Future of Work is built on the technology that delivers on the evolution of talent engagement, talent acquisition, and talent management,” said Doug Leeby, CEO of Beeline. “Bringing Utmost’s innovative offerings into the Beeline umbrella of solutions will complement our extended workforce technology and provide our clients with even more value as they optimize they ways they get work done.”

Utmost’s hallmarks, including its ease-of-use automation, frictionless integrations, and quick implementations, will enable Beeline with the ability to tap into the small- and mid-sized markets by offering a nimble foundation of offerings that link directly with these organizations’ key pain points. “Companies in the mid-market require more agile solutions at a lower cost with enhanced access points,” said Leeby. “Beeline is a fantastic “work engine” with massive functionality; Utmost will help us meet the evolving needs of this specific market while keeping our main vision in scope with the ways talent and work are evolving.”

At the center of this major market acquisition are the core constituents of the new world of work: the HR, procurement, and talent acquisition executives that run extended and contingent workforce programs, the suppliers and partners that fulfill their needs for skillsets and expertise, and the talent that drives it all.

“Acquiring Utmost is a representation of the future of extended workforce management technology,” said Colleen Tiner, Beeline’s SVP Strategy. “The transformation of both platforms has been highly complementary from business and functionality perspectives. Combining our market experience with Utmost’s solutions will help Beeline to provide Future of Work-oriented and talent-centric technology to our clients and the market.”

Tiner added that one major result of the acquisition is harnessing the power of Utmost’s strong onboarding and provisioning workflows, as well as the solution’s unique services, and bringing those into Beeline’s extended workforce platform.

Ardent Partners and Future of Work Exchange analysis of the acquisition:

  • While there are several redundancies in functionality, the Utmost acquisition represents a way for Beeline to continue doing what is best known for: innovating. There were many logical acquisition targets for Beeline in the wake of Stone Point Capital’s purchase of the company earlier this year, including direct sourcing platforms and specialist solutions (such as AI-fueled software), however, the company chose to go big with the Utmost move. The core of this acquisition is actually quite simple: it will allow Beeline to continue its long track record of being a pioneer and innovator while expanding its existing scope of Best-in-Class extended workforce management technology.
  • “Total Talent Intelligence” becomes “Global Workforce Intelligence.” In the 2022 VMS Technology Advisor, we wrote: “Utmost offers the market’s deepest total talent intelligence through agile and dynamic dashboards that present users with the ability to pinpoint (with regional- and location-specific accuracy) the makeup of FTEs, contingent workers, professional services, independent contractors, etc. and make decisions and take action in real-time (i.e., anomalies regarding compliance, etc.).” Beeline will expand the realm of total talent intelligence through its powerful analytics, AI, and machine learning capabilities to bring its clients “Global Workforce Intelligence,” taking TTI a step or two further.
  • Beeline will have a clear pathway into the HR and talent acquisition markets. Contingent workforce management has never been a pure procurement play, but there was a time when the function dominated how the extended workforce was ultimately managed. Today, as the world of work and talent becomes more candidate-centric, technology platforms must place workers at the center of their models. The Utmost acquisition enables Beeline with crucial HR intellectual property and functionality, not to mention Utmost’s expected influence on Beeline’s greater product roadmap. The infusion of HR-oriented functionality into Beeline’s array of offerings, combined with a global workforce intelligence play that will surely draw the attention of C-suite leaders, make this deal a groundbreaking one for the industry.
read more

Upwork’s Work Without Limits: HR Builds Bridges Across the Organization

EventsSolution Providers by Christopher J. Dwyer on

Upwork, a global talent and work platform, recently held its Work Without Limits summit as an in-person and streaming event in Chicago The main stage was filled with customer and enterprise presenters, including Upwork’s Tony Buffum, vice president of HR Client Strategy, who served as moderator for the panel titled, “HR: Building Bridges Across the Organization.” Joining Buffum to discuss how HR leaders are earning trust, building awareness, and gaining alignment with key business partners to drive business results, was a panel that included:

  • Zoë Harte, Chief People Officer at Upwork.
  • David Harris, SVP of HR for PepsiCo.
  • Sarah Harse, Global Category Leader for HR Services and Professional Education, Johnson & Johnson.

The panel discussion covered a variety of topics. However, a central theme was HR’s cross-functional collaboration in executing the enterprise’s talent strategy. This article explores several areas around that theme. While HR is looked upon by the enterprise to drive talent and other critical initiatives, it cannot do this alone. There must be a partnership across the entire business with other functions like procurement, finance, legal, marketing, engineering, and the like.

Responsibility Lies With Everyone

When it comes to the role of sourcing and identifying talent, who is ultimately responsible? This was the opening question that Buffum posed to the panel. Harte believes everybody is responsible for bringing exceptional talent to drive the business initiatives that are the priorities for the organization. “HR has a powerful role in that. And so do the people managers and so does procurement. We all must do it together to be successful,” she said.

Responding with a procurement perspective, Harse says in the past the function took the upfront role of sourcing, finding the channel, putting it in place, and ensuring it operated. However, that’s not enough anymore.

“Just having the channel available is not enough to really solve the challenges that are ahead for our people leaders. The more we can do to partner with our HR counterparts, our finance counterparts, or our legal counterparts to connect those dots and really think about each of us having a unique role to play — with the hiring manager at the center helping to navigate all these different channels we have available — is really critical,” Harse said.

The audience at Upwork’s Work Without Limits event listens in to insights regarding the evolving world of work and talent. (Photo credit: Upwork)

Communication Is the Cornerstone

Because several business units contribute to the identification of talent sources, cross-functional collaboration is imperative. Harris described this process at PepsiCo, which included partnerships with finance (always a major role within large companies), procurement (to ensure all the contracts and partnerships are in place), and the internal talent acquisition team (securing the available people when and where they’re needed).

Of course, such collaboration couldn’t occur without effective communication. What projects are underway and the associated strategies? What are the different metrics or objectives among the functional lines? Harte says each individual team may be working toward different metrics. However, the role of the leader is to take a step back and look at the overall objectives they’re working toward. Knowing the business mission enables everyone to work together.

“It’s then easier to see how you can merge your objectives and key results together to ensure you’re making good compromises,” said Harse. “Communicate and really have a conversation about that so people understand the give and take of everyone involved. You’ll be able to find alignment and come to some level of agreement.”

Commit to Early Engagement

However, even the best-laid plans and communication can pose challenges. Harse spoke about her own experiences in procurement working through problem areas cross functionally and where opportunities exist to work toward a better goal. She said a common pitfall is the last-minute rush that can occur when a project is tossed over the wall to another function. Because both functions have not been on that journey together, there’s a lack of understanding around the purpose of the project and the work that’s been put into it.

For the individual or team suddenly holding the project, there’s a lack of alignment in terms of priority regardless of the urgency involved. Harse said much of the issue can be resolved with better early collaboration during the ideation phase.

“We have a number of subject matter experts across all our large organizations who can bring significant value to the table. Procurement shouldn’t be viewed at the table as simply the purchasing or supply chain person, but rather the beneficiary of these strategies as well,” said Harse.

She adds that the greatest learning coming into a new role supporting HR is that everyone can identify with the need for talent access. All are people leaders who understand the challenge of filling the seats to get the work done.

“It’s easy to get people on board with that message if you bring them in early and start to engage with legal and finance counterparts at the beginning of the journey to bring down some of those barriers that inevitably come up. This is crucial for those unique relationships we want to build to really be successful,” Harse explains.

read more

The Five Things You MUST KNOW About the Future of Work

Events by Christopher J. Dwyer on

The Future of Work means different things to different people. Depending on function, geography, role, etc., some business leaders may prioritize something like digital transformation as a core Future of Work facet, while others will point to non-technological attributes such as DE&I and conscious leadership as the true hallmarks of the Future of Work movement.

No matter the position within the great organization, the truth is that the Future of Work continues to expand in size, scope, and impact, with each of its “accelerants” and “arms” transforming the many ways businesses get work done.

For today’s procurement, HR, and talent acquisition executives, the world of talent and work remains a core priority. As global issues such as inflation, the specter of a recession, and a continuous war for talent continue to impact businesses, it is critical for enterprise leaders to understand the strategies, solutions, and technologies that can revolutionize the ways that work can be optimized.

Ardent Partners and the Future of Work Exchange are excited to host a complimentary webinar, The Five Things You MUST KNOW About the Future of Work, on Thursday, October 6, at 1pm ET.

This webcast will cover the critical capabilities that enterprises can unlock to truly optimize the way they address talent acquisition, extended workforce management, and, most importantly, work optimization.

We will discuss the ways businesses can leverage the innovations and Future of Work accelerants required to not only survive these changing times…but also to also thrive as dynamic organizations in the face of consistent evolution.

read more

Procurement’s View of Direct Sourcing

Direct Sourcing by John Yuva on

The role of procurement is ever-evolving. Chief Procurement Officers are executing strategies in a world wrought with immense volatility and unpredictability. While the scale of disruption is unlike anything witnessed in a century, procurement serves as the rudder for many enterprises, helping navigate this uncharted territory.

It is a position that CPOs are accustomed to — think back to The Great Recession from the not-too-distant past. Times of change and uncertainty are when procurement takes center stage. Amid current supply shortages and extended lead times, procurement’s sphere of influence has expanded to talent acquisition and the Future of Work.

What kind of scene did procurement walk into? It’s well-documented how the pandemic forever-altered workplace dynamics when tens of millions of workers shifted from on-premise to remote working. And as the pandemic abated, The Great Resignation took hold with millions leaving their jobs or the workforce entirely. It’s also important to mention that the workforce itself is transitioning from what was mostly full-time employees to nearly 50% contingent workers. The Future of Work Exchange (FOWX) cited in its recent article, Where Does the Extended Workforce Go From Here?, that “FOWX research pegs contingent labor at 47% of the average company’s total workforce, a statistic that is only expected to grow in the months and years ahead.”

Enterprises are now waging a war for talent amidst a highly competitive recruiting environment where traditional recruitment methods alone are no longer viable. It requires a several-pronged approach and internal ownership using direct sourcing to plan, execute, and manage a talent pipeline for the future success of the organization. It’s nearly table stakes to operate with agility and resiliency. The competitive differentiator is attracting talent that brings new outlooks and outcomes to your global market and envisions markets and lines of business yet to be explored. Procurement should be right at home in this environment, adjusting to the intricacies of talent acquisition and the concept of direct sourcing for recruitment.

According to Ardent Partners’ The Direct Sourcing Toolkit, “talent pool creation and development” was the leading priority for talent and workforce management in 2020. And, in 2021, Ardent and FOWX research pointed to talent and skills access as a core priority heading into 2022. The question remains, then: How can procurement approach talent acquisition and a direct sourcing strategy?

First and foremost, it requires collaboration with HR to understand the talent needs of the enterprise. Where are there gaps in specific departments? Are there major initiatives with vacancies in key roles? Does the organization need additional support for promotional or seasonal purposes?

Procurement complements HR in this effort because of its cross-functional relationships and deep understanding of operations and ongoing product development. Leverage those relationships to glean insight into talent issues and where the organization could use support. It may be necessary to form a talent committee with representation from various business units. Communicate the new direction for talent recruiting and the shift to direct sourcing. Since the enterprise is curating and managing its own talent pipeline, leaders should be encouraged to recommend prospective candidates — both passive and active — from their own networks.

As the talent pool(s) builds with new and on-demand candidates, such as alumni, silver medalists, and former freelancers and contractors, they can be segmented based on their skillsets and competencies for various types of roles. Procurement can collaborate with IT to ensure recruitment and talent management applications and platforms [e.g., applicant tracking systems (ATS) and vendor management systems (VMS)] integrate well with the larger enterprise network.

Many enterprises utilize external partners to meet their contingent workforce management objectives. Monitoring various talent channels is resource-intensive and requires a dedicated team. Procurement can lead the search and selection of a Managed Service Provider (MSP), for example, which has access to supplier networks for talent needs across the enterprise and supply chain. Expertise with supplier selection and relationship management pays dividends when procurement leads this effort — cost awareness, contract management, and relationship building with the MSP. It also ensures procurement’s continued involvement with the direct sourcing program and the opportunity to influence its future direction.

Technology is critical to a direct sourcing program. An ATS and VMS are core to attracting and managing a contingent workforce. However, Industry 4.0 solutions (e.g., artificial intelligence (AI) and predictive analytics) are now being utilized with direct sourcing initiatives to fine-tune potential candidate placement and predict talent needs. These technologies are integrated into many manufacturing operations, so it’s no surprise that talent management is now benefiting from a human perspective as well. Here again, procurement is well-versed in the use and potential of AI and predictive analytics. Where are there opportunities to further leverage AI to achieve talent management objectives? How far can predictive analytics provide mitigation against critical talent shortages or succession dilemmas? Imagine using a digital twin to simulate the workforce needs in the next decade?

Procurement has a vital role in today’s talent management initiatives. Leading direct sourcing programs alongside HR is not only good for business, but a necessity in today’s frenetic labor market.

read more

The Future of Work Exchange Meets the “CPO Open Mic” Podcast

Business LeadershipGeneral Insights by Christopher J. Dwyer on

I had a wonderful opportunity to join Beeline’s Chief Procurement Officer, Mike Schiappa, on the CPO Open Mic podcast. In what ended up being one of my all-time favorite discussions, Mike and I chatted about “The Great Resignation” (and how it will become “The Great Resettling”), the growth and impact of the extended workforce, why direct sourcing should be top-of-mind, and how business leadership needs to be more human. Tune in!

read more

Start Off 2022 With Some Exciting New Future of Work Events!

General Insights by Christopher J. Dwyer on

After the holiday lull, this is an exciting time for HR, procurement, talent acquisition, finance, IT, and other business leaders, not just because 2022 finally gets into full swing, but also because it’s the official “restart” of industry events! The Future of Work Exchange is incredibly excited to join several big events over the next couple of weeks, with plenty more in store for the month of February.

First up: tomorrow, join Beeline, iValua, Ardent Partners, and the Future of Work Exchange for its annual “Big Trends and Predictions” webcast. Ardent’s Chief Research Officer, Andrew Bartolini, and I will be joining Beeline’s Linc Markham (VP of Product Strategy Ecosystem) and iValua’s Vishal Patel (VP of Product Marketing) to talk procurement, HR, and Future of Work trends and predictions for 2022

Next week: Super excited to join WorkLLama’s COO and co-founder, Saleem Khaja (as well as other to-be-announced special guests), for an awesome discussion on the evolution of direct sourcing and how “Direct Sourcing 2.0” strategies, solutions, and technologies can revolutionize talent acquisition and talent engagement.

Also on tap for next week: I’ll be joining the World Staffing Summit for a featured appearance on “Why the Extended Workforce is the Cornerstone of the Future of Work” during its North American Day of the event. Neha Goel of Utmost and Cesar Jimenez of myBasePay will co-present with me. The Future of Work Exchange will also be represented on a panel discussion hosted by the team at JoinedUp.

read more