Focusing on operating costs rather than headcount is the key to managing contingent labour for Jaguar Land Rover (JLR), a webinar was told.
David Owen, global purchasing director for production and aftermarket parts at JLR, said putting the right structures in place was critical for managing the category.
Speaking during a Supply Management Insider webinar on how HR and procurement can better work together on contingent labour, Owen said it was important that “the approach and the engagement is fit for the intended purpose and you have some really robust performance indicators and active category management”.
“We have moved into finance, HR and purchasing moving away from managing headcount to managing operating cost,” he said.
He spoke of the “importance of managing structures and those costs, and the people driving those costs, in the most appropriate way”.
John Milton, business development director at Comensura, warned it was a highly complex market. “It’s people not parts. Treating the category like parts doesn’t work at all,” he said.
“You really do need to understand your internal market and supply chain and what that looks like, because a lot of assumptions are made in looking at this category and that stems from a lack of understanding internally and externally.”
He added: “What a lot of people don’t bear in mind is if everything is bought by line managers effectively you have no control over it. You are lacking a central contract management function.”
John Wallace, HR consultant at Resourcing Insights Ltd, said having a plan was the most important factor. “Know what you want to do with your contingent labour strategy and then have the insight to know whether you are doing that,” he said. “And if you are not doing that, what are you going to do to fix that?”
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