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Structure Two
(Tier 1 Staffing Firm; Automation Tool)

Because of the complexity involved, companies with more than $10 million in annual contingent labor spending may need a tool to automate their programs unless the Tier 1 staffing firm has a proprietary tool or processes that feature similar functionality. In addition to the general features of Structure One, the Structure Two staffing scenario includes the selection and implementation of a Web-based Vendor Management System (VMS).

Structure Two Flow Chart

Advantages
Disadvantages

  • Completely automated solution from job order requisition to invoicing.
  • Tier 1 staffing firm partner absorbs some of the duties and costs for implementation, training, and help desk support of the Vendor Management System.
  • Tier 1 staffing firm may have experience with the selected Vendor Management System.

  • Implementing an e-procurement tool can be challenging.
  • Third party software contracts are typically for a three- to five-year initial term.
  • Some third party software firms have gone bankrupt or have been acquired.