Are you Overpaying Your Suppliers for Your Contingent Workforce?
Having data and insights about your contingent resources’ workday will help you determine the success and efficiency of your workforce program including answering the simple question of how do you know if you are overpaying your contingent workforce suppliers? Take a few minutes to learn how some companies are receiving significant cost savings using unbiased workforce analytics.
We challenge you to move beyond the typical shop and compare pricing exercise that most companies execute as an answer to manage costs because it only provides a partial answer to the question of whether or not you are overpaying your contingent workforce suppliers.
It’s time you rely on a complete set of data analytics to know that you are getting the services for which you paid. Accurate workforce analytics can support routine work time versus time sheet audits and give you insight to identify and rank top-performing suppliers, effectively negotiate better terms for your business, and significantly cut costs.
Why Suppliers Currently Have the Advantage
Let’s face it, the external labor procure to pay ecosystem is currently set up for the supplier versus the buyer to come out on top. The key participants in the contract labor supply chain have a business sustaining economic model that is dependent on maximizing hours billed to the client. Buy side business that approve timecards without question is good for supplier’s business.
Who is looking out for the buyer? The fact is you must look out for your business. It starts with the right data to track contingent workforce efforts and confidently drive a profitable cost-saving strategy. But considering the autonomous nature of the work agreement, gaining accurate and unbiased visibility into individual worker performance isn’t easy. Until now!
Trust, But Verify: Advanced Tracking and Analytics With transparenSEE
Sapience is an advanced analytics platform that lets you integrate existing systems to gain access to actionable analytics from your applications. Our intelligent data solution, transparenSEE, offers insights into contingent workforce performance so you can effectively manage your budgets and project timelines.
Specifically, transparenSEE helps your business to close the contingent workforce three-way match gap with automated, unbiased work data. The current process presents the necessary documentation – the purchase order (PO), receipt of goods/services and the invoice. On the surface, when you look at the agreed upon PO against the supplier’s timecards and the matching invoice, everything seems fine. If all three matches, how could you be overpaying?
Companies don’t think to verify the hours on the timecard. They assume the supplier is completing them accurately. But are they? What reliable source do your leaders use to confirm external labor timecards are accurate before approval and payment? Wouldn’t it be transforming if suppliers were held accountable to only invoice for hours actually worked? Sapience transparenSEE provides businesses with that level of visibility. Trust, but verify. The result … savings of at least 30 percent of your external labor costs.
Added Value: Optimize Supplier Spend with Better Governance
Don’t stop there. Now you know there is a proven method to validate your contingent workforce spend. This data is scalable. You can continue to monitor, measure and validate the quality of your supplier program with the right governance to:
- Establish early warning signs when project timelines are at risk
- Implement needed performance reporting to enhance supplier performance visibility
- Diagnose bottlenecks
- Align goals
By disrupting what has been the “business as usual” practice in the contract labor supply chain, you also strengthen the collaborative team vision, while positioning the company for significant cost savings. You must focus on strategic KPIs to achieve your business goals.
In an automated, secure, seamless, and unbiased way, Sapience will collect and provide accurate data as the definitive source for timecard validation for both remote and at office contingent workers. Instantly, you will stop overpaying your external labor suppliers who are providing you with overstated timecards and expecting you to approve without verification– because it’s costing you. Check out a free demo today and discover the significant impact of strategic data insights on your bottom line.
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