Companies have spent A TON of money and dedicated great time and super talent to make their organization a leader in addressing contingent labor. How does the changing RPO/Stafiing landscape effect this portion of your service? Who is looking out the enterprise's best interest in the sourcing process? Manage HR, finance, legal and procurement spending costs. Reduce legal costs, HR management, Accounts payable management, workforce etc. with strategic category management. http://www.hcmworks.com

1. RPO
from a
Procurement’s View
Tomorrow
Accurate Facts Lead to Accurate Decisions.

2. Who is HCMWorks?
HCMWorks helps procurement departments OPTIMIZE indirect spend.
A consulting, advisory and outsourced services provider focusing on the
analysis, strategic direction, identification, implementation and
management of indirect spend.
“High-level strategy and design, along with the critical hands-on management of daily
transactions”…….
“Ability to go beyond the services component to look holistically at all indirect spend to find
opportunities for savings for the entire enterprise”…….
“Works with user community (execs with buying power) to maintain compliance with standards
that the company has setup; does not dictate the standards”….
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

3. Who is PSC?
 Payment Services Corporation is a subsidiary of HCMWorks, Inc.
 Payment Services Corporation is a leading North American Professional
Employment and Payment Processing Company.
 We manage the time allocated to the management of Contractor
Payments and Employee Payroll tax filing so our clients can focus on
their core business.
 We aggregate Independent Contractors and Sole Proprietors to ensure
compliance to legal, tax and regulatory statutes.
 Since 1987 our management team has facilitated the payroll for well over
a million employees and independent contractors. Our experts
understand the provincial and federal regulations and work to ensure
that all payments are facilitated in a timely fashion.
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

4. Control vs EMPOWER
MOTIVATE (positively / negatively)
• Energy
• Short-lived
COLLABORATE
• Change Management
• Time Consuming
EMPOWER
• Viral
• Self-managing
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

5. Survey Results 2011
Biggest challenges organizations are currently facing:
•Lack of visibility into indirect spend
• Making people aware that a procurement group is available
How do you see things changing in the next 1-3 yrs?
• Will see a rebound in usage of contract labor as growth happens
• Good time to be in the procurement space – much more visibility into cost side
• Raised visibility with firms that have a lot of indirect spend with executive team
What are the big problems you’ll be looking to solve over the next 12 months?
• Relationship mgmt is critical – anyone can source and negotiate, harder to manage acct
on day to day basis
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

6. Renewed Focus on Procurement
Executive Mandates
Temp Labor
Sarbanes-Oxley
Facilities
Legal
Goods
Marketing
Professional
Co-Employment Services
Spend Under Sourcing & Thought
Compliance Management Supply Chain Leadership
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

7. Typical Landscape
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

8. Organizational Relationships
Suppliers
Supplier Enablement
Supplier Managers
Settlement Management
Contingent Pro
Legal Facilities Marketing Goods
Labor Services
Category Management and Services
Spend Management Solution(s)
Hosting / Infrastructure Monitoring / SLA
Internal “Customers” (requestors)
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

9. Request-to-Settlement
5) Settle
4) Manage
1) Need
3) Source
2) Order
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

10. Where’s the Opportunity?
1) Need
(procurement)
(HR)
(internal users/requestors)
When you think of your internal customers as having needs, and the
process and/or tools that they use – is it driving (empowering)
adoption, or is it more like ―you will do this‖ and as a result, driving
adoption and change management issues? Who can assess, source
and implement any number of initiatives to further this program’s
success?
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

11. Where’s the Opportunity?
2) Order
(procurement)
(HR)
(internal users/requestors)
(RPO)
Is it easy? Is it different that what they’re used to? Does it take too much
time/energy? Does they have to pay for a ―service rep‖ to ―broker‖ the
order because of the difficulty and/or specificity of the order request?
Does your RPO provider(s) have issues? How does the changing
RPO/Staffing landscape effect this portion of your service? Is the
process integrated into organizational systems (ERP/VMS/etc) for later
reporting?
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

12. Where’s the Opportunity?
3) Source (strategic sourcing)
Is the sourcing process objective? Since the staffing owned RPO may
be brokering the request and the staffing owned VMS may be facilitating
the transaction, are your internal customers getting what they’ve asked
for? In the end, who is looking out for your enterprise’s best interest?
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

13. Where’s the Opportunity?
(HR) 4) Manage
(finance)
(legal)
(procurement)
Reduced:
Legal Expenses Contractor Availability
HR Management Competitive Risk Costs
Accounts Payable Management Finance Department Expenses
Workforce Misclassification Exposure Timekeeping Expenses
Co-employment Risk Expense Contingent Workforce Mgmnt Expense
Spend Management Expenses
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

14. Where’s the Opportunity?
5) Settle
(finance)
Is the process fully integrated? How are invoices without PO’s handled
for this category? Is the settlement/consumption (time/milestone
submission) process as efficient as it needs to be? Is this leading to any
adoption/change management issues?
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

15. ―your‖ RPO
Keep
Procure-to-Pay
Compliance
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

16. Where Do You Need Help?
Knowledge of Knowledge of your supply
yourbuyers, buyin market to meet your
g habits, business business requirements
requirements and through Strategic Sourcing
culture, requires
heavy stakeholder
involvement Cash
Cost
Quality
Service
Keep
Optimize Compliance and Report and
Procure-to-Pay Process Savings Manage
Application Infrastructure
Compliance
Joint implementation of strategies, processes and systems with
Stakeholders and Suppliers to Lock in the Savings
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

17. Business Requirements
Category Management
Settlement
Advisory Strategic Program Process Settlement
Services
Management Sourcing Implementation Management Management
Strategic • Organizational & supply-base review • Market and competitive analysis • Strategic roadmap development
Planning • Opportunity assessment • Business management alignment • Implementation plan
Process • As-is procurement process mapping • Technology automation opportunities • Best-practices recommendations
Consulting • Industry benchmarking • Identifying areas of spend leakage • Implementation plan
Risk • Risk assessment • Risk mitigation recommendations
Assessment —Supply-base • Implementation plan
—Offshore/outsourcing services
―Contingent workforce
―Procure-to-pay process and
policies
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

18. SRM - KPI Program
Quality - 30% Percentage Target Points Actual Score
Percentage of positions filled 80.00% 95% 24 n/a
Kelly Services 78% n/a
Manpower 19.9% n/a
Percentage of No Show status 10.00% < 5% 3 4.02% 3
Percentage of Terminations for reason 10.00% <5% 3 2.5% 3
Cost – 25% Percentage Target Points Actual Score
MP – $ 20.97
Work Order Bill Rate Comparison by service (admin) 70.00% Average 17.50 n/a
Kelly – $ 16.24
MP – $ 20.98
Bid Bill Rate Comparison by service (admin) 20.00% Average 5 n/a
Kelly – $ 16.44
Regional Bill rate Comparison by service (admin) 10.00% Average 2.50 $ 18.61 n/a
Delivery – 15% Percentage Target Points Actual Score
Number of requests filled on time? 40.00% 95% 6 65% ** 4.08
Number of same day next day requests filled on time 40.00% 95% 6 44% ** 2.76
Average time to fill a request 20.00% Average 3
Support – 15% Percentage Target Points Actual Score
Problem Resolution 40.00% 3 6 2 3.96
Repeating or Persistent Problems 60.00% 3 9 2 3.96
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

19. Help You Source
Category Management
Settlement
Advisory Strategic Program Process Settlement
Services
Management Sourcing Implementation Management Management
Spend Analysis • AP and Purchasing data sourcing • Spend cube creation • Opportunity assessment
and cleansing
Supply Base • Evaluation of market trends, supplier • Profile of current supplier spend, • Opportunity assessment
Analysis capabilities, performance performance capabilities compared
benchmarks to market
Requirements • Assessment of incumbent supplier • Data gathering from stakeholders • Development of RFX documents
Definition performance • Definition of RFX evaluation criteria • Validation of requirements
RFX Execution • Execute RFX process • Cost savings analysis • Recommendation development
and Evaluation • Evaluate RFX process • Service level analysis • Approval process management
Supplier • Supplier selection communication
Selection and • Contract draft process
Contract • Contract review & final negotiation
Negotiation
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

20. Program Implementation
Category Management
Settlement
Advisory Strategic Program Process Settlement
Services
Management Sourcing Implementation Management Management
ApplicationDeplo • On-demand platform configuration • PunchOut integration to • Additional configuration and
yment ERP/procurement infrastructure (if customization available
desired)
Best Practices • As-is and to-be procure-to-pay • Phased rollout project plan • Resource augmentation
Implementation process definition and gap • Program governance structure identification
identification definition
Change • Gaining and maintaining executive • Implementation of updated • Employee training
Management and business operations sponsorship procurement and AP policies and • Supplier transition and training
• Strategic communications planning procedures
and implementation
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

21. Process Management
Category Management
Settlement
Advisory Strategic Program Process Settlement
Services
Management Sourcing Implementation Management Management
Requisition • Daily monitoring of requisition flow • Requisition expedites (e.g. same- • First day calls (ensure candidate
Management • Create requisition on behalf of day) arrival)
managers • Coordinate candidate reviews • Timesheet and receipt proxy entry
Sourcing • Verification of supplier/candidate • Hiring manager / Requester status
Support compliance (e.g., background update
check, education requirements)
Change Order • Manage candidate/supplier • Order updates and extensions
Support replacement
System Data • Add/edit job types/descriptions/ • Rate adjustments and updates • Business rules updates (bid
Maintenance locations and catalogs • Maintain supplier users factors, supplier scoring, approval
• Sourcing rules management tolerances)
Tactical Supplier • Supplier training (ongoing) • Daily interface w/suppliers on • Gather performance evaluations
Management • Weekly KPI review performance issues from managers
Compliance • Weekly review of corporate/tenure • Weekly analysis of PO and work • Supplier spending limit approval
Oversight policy issues and compliance order actuals-against-budget audit
• Supplier SLA audit
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

22. Settlement Management
Category Management
Settlement
Advisory Strategic Program Process Settlement
Services
Management Sourcing Implementation Management Management
Invoice • Invoice receipt and consolidation
Processing • Timesheet and progress log matching against negotiated ratesheets and work orders
• Ensure correct pro-forma invoice generation
• Customer invoice generation
Supplier • Settlement issuance
Payment • Supplier approvals
• Payment schedule management to ensure SLA and terms are met
Exception • Dispute resolution
Handling • Reconciliation
• Invoice adjustments
• Credit processing
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.

23. Control vs EMPOWER
MOTIVATE (positively / negatively)
• Energy
• Short-lived
COLLABORATE
• Change Management
• Time Consuming
EMPOWER
• Viral
• Self-managing
Accurate Facts Lead to Accurate Decisions.
Copyright 2012 HCM Works Inc.