The Importance of Indirect Procurement’s Cost

THE IMPORTANCE OF INDIRECT PROCUREMENT'S COST $3.3 55% TRILLION is spent annually on non-payroll labor. 55% of contingent labor is unaccounted for. $100 MILLION 30-50% $100M+ in cost savings, attributable to visibility, competitive bidding, and 30-50% of the total workforce is comprised of non-employees. rate card creation. Contingent Workforce Spending in the Past 5 Years: 41% There has been a 41% increase in contingent workforce spending in the past 5 years. 2010 2011 2012 2013 2014 2015 Workers Hired for Temporary Roles: 3-67% 67% more workers are MORE hired for temporary roles than the previous year. 2014 2015 CASE STUDY: Cisco has saved over $33M $33 to date by competitively bidding SOWS and identifying MILLION commoditized SOw. In Addition, Today Cisco Can Do the Following: RATE BENCHMARKING ENFORCE APPROVAL LIMIT SPEND TO AVAILABLE TO PROCESS PRE-APPROVED BUDGETS ALL MANAGERS CONTRACTOR SECURE TRANSFER OF PROPER WORKER SYSTEM AND FACILITY DATA TO CISCO BI TOOL CLASSIFICATION ACCESS ENABLED FOR HOLISTIC REPORTING Percent of Total Expenditures Spent on Wages and Salaries: 16.4% 13.2% Back in 1995, sole proprietors spent 16.4% of their total expenditures on wages and salaries, as compared with 15- 10- 5- 13.2% in 2011. 1995 2011 During the course of a year, America's staffing companies hire more than 14 million temporary and contract employees. MORE THAN 14 MILLION 76% Most (76%) work full time, comparable to the overall workforce. SOURCES: sig.org/docs2/The_Changing_Landscape_of_the_Flexible_Workforce_- And_Why_ Procurement Should Care - Fieldglass.pdf?docID=9027 sig.org/docs2/Enabling_Effective_Services_Procurement_Through_Technology_-_Fieldglass.pdf?doclD=9541 entrepreneur.com/article/236391 americanstaffing.net/staffing-research-data/fact-sheets-analysis-staffing-industry-trends/staffing-industry-statistics Brought to you by: HCMWORKS www.hcmworks.com