CPOs have a lot to worry about – sourcing alone is a major aspect of every business and it's complicated and difficult to organize. In recent years, CPOs have been receiving more attention as compliance pressures, supply market risk and globalization have added pressure but even for those companies that place a high importance on procurement, there are still a lot of things that are hazy.
Some companies are unsure of exactly what their procurement officer's full role is – whether it's just obtaining supplies and equipment or whether or not they deal in hiring and managing contingent workers (an increasingly popular option), which is often left to HR rather than procurement managers. Lack of organization coupled with various managers dealing with different kinds of acquisitions can lead to confusion and rogue spend.
Naturally, this creates a problem. CPOs especially can have trouble organizing staffing vendors, contingent workers, varying rates of pay and more in an efficient way and this can lead to trouble. As mentioned, different things are often dealt with by different departments, which means there's no central oversight on how much is being spent and this is where vendor management can suffer. Businesses could be paying different rates for different staffing vendors, paying contingent workers in an inconsistent manner and more and have no efficient or easy way of really knowing what's happening. This creates a massive strain on CPOs all over the world yet few businesses are really equipped to re-haul their entire internal system. Luckily, there is an easier answer.
The key is visibility and control – without knowing what is being spent, where it's being spent, and having no ability to manage those numbers from a central location, it's no wonder so many companies are frustrated. Aside from just the issue of rogue spending, lack of organization in any business is enough to cause even bigger problems down the road. This can be money and time lost researching fair market rates, resources lost to lack of ability to plan better and more.
An increasingly popular solution among businesses that are interested in the hiring and management of contingent workers is vendor management technology and workforce management solutions. Effectively, this is a centralized tool where everything can be organized into one place, making the entire process not just more efficient, but a great deal easier for everyone involved. At a glance, you'll be able to compare all of your contingent workers and staffing vendors – their rates, the length of each contract and simply compare it to fair market prices to make sure you're not only getting the best deal, but that you're paying similar rates across the board. This is an incredible way to reduce rogue spend, which plagues businesses all over the world and an excellent way to exercise the control that you need.
Consider how much is lost solely when it comes to strategic planning – when you're unable to see the big picture, you can't manage your funds as well or tailor a tight strategy for the future. This is where visibility comes in, something that many companies lack when it comes to contingent workers. When you make use of software solutions (not to mention consultation and assistance), you can plan your workforce, your sourcing and your company's whole future with a more critical eye. By making use of technology specifically designed to tailor to your particular needs, a CPO’s job gets a lot easier and more effective, which benefits every area of the company. That means you can focus more on your goals and less on rogue spend, disorganized management and the stress that comes with it.