The initial goals....
Supervisor Productivity - Improved HSE Performance - Visibility and Transaparency to drive better decisions
oh yeah...Commercial value is a nice tertiary benefit!

The future....this is where it gets fun!
Open awareness of the workers (think - identity management; eventually RFID) and vendors (think - score cards) throughout the region (and globally)....safety and quality of work performance ratings for all to view (think - eBay type ratings).....improved selection; better margins for quality performers; more efficient projects (think rolling shuts across the Pilbara!)....improved productivity of the supervisors and contractors.....dare I say a victory in the "war for talent"?

Problem

Throughout the past five years - with heightened focus during the GFC - most every organization out there has been looking to address visibility, complaince and cost controls associated with all forms of labour working within their corporate walls (FTEs, contractors, consultants, Independent Contractors, freelancers, sub-contractors, temps...); and more recently the focus has begun extending throughout the labour supply chain....especially when it come to compliance and data privacy issues!

Cost and Complaince have been the consistent driver....Procurement has consistently been the process driver....BUT!!!

Operations is accountable for the output of work, the share holders are focused on profitability, the relationship with the community you operate within has increased in focus dramatically (can anyone say Carbon Tax....Green...Sustainability), and with the "war for talent" back on, efficiency needs to be in the spot light now more than ever!

Solution

Multiple phases here, and it's important not to get ahead of ourselves....to start, let's focus on policy compliance and reducing the administrative burden on work supervisors....that, in itself, will pay for the program...and establish the requisite credibility needed to expand the scope and direction of the program.

The "MSP" - Managed Service Provider - concept is widely deployed in North America and western Europe to bring visibility and process control to the contingent labour category....the goal here is to scale it up to address the entire services supply chain.

Lessons learned from other global MSP deployment have all been cataloged and address in the initial design....some BIG differences here:

Don't disrupt the vendor relationships contractually...there's no need
Eliminate the "vendor funded" concept....this country is resource poor on talent; let's not aliente the suppliers
Deep automation design...SaaS VMS technology is integrated into the ERP platform
Optionality....recognition of where differences occur as a means of eliminating barriers

Adoption.....without active participation from all parties within the scope of the effort, the business case will erode quickly! Adoption, plus a view into the degree of change rquired helps define the resourcing requiorements.

Leveraging an appropriate balance of on-site resources to provide the "high-touch" needed for adoption, and shared services off-site resources to handle those tasks that can be equally performed off-site (but keep them in country....that will help with adoption).

Vendor Qualification and Managment (standards and scorecards), Sourcing, Transaction Management (job catalog development, SOW standarisation, qualification standardisation, competitive bidding, time and milestone tracking - including exposure hours) , Worker Induction (on and off boarding as well as assett management), Invoicing (massive process efficiency improvements through out the supply chain), data analytics and innovation projects.

KPIs agreed to with SLAs to maintain accountability for all parties

Governance....multi-tiered; at the Solution level, at the Technology level, through each implementation, throughout the Operational life cycle.....accountability and focus!

Practical Impact

We have to focus on simplicity to start....drop the visionary aspects of what we will have accomplished in five years, focus now on the initial building blocks....do that right and you have the focundation necessary to build a significant structure!

Four core tennants to the solution:

Centralized management of the Services Supply Chain
SaaS technology as a single system of record - from vendor engagement, through competitive bidding, through transacting, invocing and data analysis
Process Changes to streamline and drive efficiency
Engagement of an outsources "MSP" to drive sustainability of the program for the long term

First Steps

Deploy the pilot site and validate the concepts....done!

a 40% improvement in the productivity of the Supervisors
14 days removed from the vendor DSO
10% cost savings....a nice added benefit!

What's next? Deploy internally and then address it across the industry....prioritize access and opportunities for the vendors and wrokers that exhibit the behaviors you have prioritised - safety, compliance and productivity. Look to synchronize jobs across regions where skill shortages are significant barriers to productivitry....Western Australia? South Africa? Costa Rica? ....create business development opportunities for the suppliers who perform best.....develop work force plans that address skill sets -- regarless of the means in which they were acquired (FTE, Contractor, Outsourced, etc.)....build workforce plans --- for your company, for economic development, for education initiatives, for immigration policy...

Safe working environments for your employees, your service providers and their employee and for your community will drive sustainability of your business! Web 2.0 will allow you to see what you are accomplishing....real-time! Save money...OK; but Productivity improvements are a far more sustainable approach towards driving profitability!

Credits

Still defined as a largely confidential project....details on the change management effort and technology map, as well as the neames of the parties involved will be published at the appropriate point in time.

Many inside Kelly - lead by Michelle Steffes - and within the client environment - lead by their CPO and his Business Improvement team;their Lead Site Operations MD and CFO; their CHRO and the HSE team; their IS&T organization

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July 5, 2017 at 4:00pm

Emelia Ingram

Supply chain is important for every businesses that offers products or goods, so of course safety and productivity must be assured. Supply chain is a continuous process so it must not be interfered with any bad instances that will affect it. Supply chain's processes are somewhat delicate and risky so it needs to be managed carefully.

Regards,
Emelia I.
Supply Chain Marketing
BR International Supply Chain Services Australia