One of our clients chuckled as he told us that “vendors in a managed service program are like a squirrel looking at a bird feeder.” It’s only a matter of time before they find the next way to get around it.
Why do vendors try so hard to work around Managed Service Programs? Simple – traditional vendor management approaches have taught them some painful lessons. Lessons such as: price, price, price, talent isn’t an issue, and temp labor is a commodity.
If a program is run properly, you’ll find that the information, coaching, feedback, and data visibility suppliers get can actually help them improve their stance in a program.
When dotStaff rolls out programs in client sites that have never had an MSP or VMS program, we’ve encounter numerous suppliers who believe they represent a high portion of the client’s spend. After the data is collected and all temp labor spend was processed in the system, we learn these particular suppliers seldom had more than 5% of the total spend.
Therefore, our company focuses on coaching suppliers about forecasted spend in the client site. As a result, they are better prepared to seek the right types of talent and to become more aware of decision makers. The result is growth.
However, I still find myself often asking, “Why do suppliers attempt to work around programs when we’re providing them with opportunity to grow?” But then I am reminded that its human nature for even the highest integrity people to try to break the rules. It’s human nature to want to be in control.
People do try to break rules. Despite this, at dotStaff, we try our best to make the rules less cumbersome and the results better for those that participate in our programs.