Addressing "The Last Mile" in Global Contingent Management

In today’s globalized economy, effectively managing a dispersed non-employee workforce is a challenge for large organizations. Many companies invest heavily in technology solutions like SAP Fieldglass and partner with Managed Service Providers (MSPs) to oversee their contingent workforce programs. While these programs are often successful in larger markets, extending the same solutions to smaller markets can become a complex and cost-prohibitive task—a scenario known as "The Last Mile."

What is "The Last Mile"?

"The Last Mile" refers to the difficulties organizations face when rolling out non-employee management solutions in smaller, cost-sensitive markets after successfully implementing them in larger ones. These challenges typically arise due to the high cost of technology, integration, and managed services, which may not be justified by the lower spend in these smaller regions. As a result, companies must find a balance between achieving global coverage and maintaining cost-effectiveness.

Key Challenges in "The Last Mile"

1. Cost-Effectiveness: Deploying enterprise-grade technology in smaller markets often leads to scenarios where the costs outweigh the benefits. The spend in these regions may not justify the extensive investments required, resulting in inefficiencies.
2. Complex Integration: Smaller markets come with unique regulatory environments, cultural considerations, and market dynamics, making it challenging to integrate global solutions without significant customization, thus increasing complexity and cost.
3. Resource Allocation: Organizations must decide whether to allocate the same resources to smaller markets as they do to larger ones, often requiring difficult trade-offs between maintaining global consistency and adapting to local needs.
4. Scalability: While large markets can absorb the costs associated with advanced technology, smaller markets need more scalable solutions that can grow with their non-employee spend.

Mitigating "The Last Mile" Challenges with Contingently

To address these challenges, it is crucial to have structures and processes in place to manage the program effectively, even in the absence of an MSP. Contingently's Last Mile solution offers a tailored approach to extend non-employee management programs to smaller markets efficiently.

1. Country-Level Administration: Each market should have a designated administrator proficient in using the FaaST Start platform to manage key data like hiring managers, sites, and locations. Proper training and ongoing support are essential for success.
2. Utilization of Standard Job Roles: FaaST Start provides pre-defined job roles optimized for multiple markets, ensuring consistency while allowing some customization to meet local requirements.
3. Local Supplier Integration: Local suppliers must be onboarded to the Contingently platform, including entering agreed-upon rates and managing uplift coefficients to ensure accurate billing.
4. Billing and Financial Management: Billing is handled directly between the local buyer and suppliers, with Contingently charging its fees to the global program. This centralization simplifies financial management while ensuring local control.
5. Support and Governance: Continuous support for local administrators and suppliers is crucial, along with clear governance frameworks to ensure compliance and maintain program integrity across all markets.

Conclusion

"The Last Mile" presents significant challenges for global organizations seeking to manage their non-employee workforce effectively across all markets. While larger markets can justify the costs of advanced technology, smaller markets require a more nuanced approach.

Contingently's Last Mile Solution offers a scalable, flexible, and cost-efficient solution to extend non-employee management programs to smaller markets, ensuring comprehensive global coverage without compromising effectiveness or efficiency. As organizations continue to navigate the complexities of global non-employee management, solutions like Contingently Last Mile will be essential in ensuring that every market can benefit from the best practices and technology driving success in larger regions.