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Baby Boomers are Retiring. Enter the Independent.

Jan Malasek • Jul 29, 2015

For the past 90 years a 40 hour work week has been the centerpiece of American life. This structure was necessary because it was the only way to bring people together to collaborate or produce. It was the norm and we all subscribed. But lately, that’s all been changing – and changing fast. Technology, a retiring work force, a changing economy are all playing a role. According to a recent study, Freelancing in America: A National Survey of the New Workforce, there are currently 53 million workers that consider themselves “freelancers”. These independent consultants make up 34% of the American workforce.

That number will grow. Over the next 15 years 40% of the current workforce, the Baby Boomers will retire. Replacing them will be a challenge. Generation X is small and Generation Y, the group most familiar with the concept of independent consulting, has a different concept of how they want to work. By 2020 it is estimated that over 49% of the American workforce will be independent consultants. In fact, this exodus has already begun and employers are feeling the pinch. A recent Corporate Leadership Council report states that nearly 60% of organizations surveyed revealed that they are currently experiencing a leadership shortage. 76% of these companies are not confident they will be able to adequately fill these positions. This talent drain is inevitable and without planning, organizations will struggle to maintain a bench with enough depth and skill to ensure their firm’s success.

In 2014, more than $1Trillion (with a “T”) dollars were contributed to the economy by independent consultants. This change in the way Americans work is, according to Sara Horowitz, Executive Director, Freelancers Union “an economic shift on par with the industrial revolution.” The corporate landscape is changing and as an independent consultant, you should be planning. Securing a steady stream of desirable contract work requires a different skill set and mind set from landing full-time employment. To help guide your efforts towards securing projects and position yourself with employers as high-caliber talent review the OnDemand Resource Your Resume: Best Practices infographic. This common sense resource will reinforce the steps necessary to stand out with hiring managers giving them the positive experience they need to feel comfortable hand you their business.

By Jan Malasek 27 Feb, 2024
Structured approach, cross-functional leadership and rigorous analytics are key to procurement success. I asked a member of our OnDemand Professional Network Priya Kumar to share her approach. Here is her example. SITUATION OVERVIEW Biotechnology company wanted to establish a procurement function for their $120 MM global external operations. Priya was brought in as a Procurement leader to work with the organization to develop a strategic procurement function to drive savings and improve efficiency. APPROACH She worked closely with engineering teams, product development, manufacturing operations and global planning to understand current processes and business priorities. Additionally, she conducted a supplier activity and spend assessment to analyze the current landscape. A thorough analysis of current challenges and gaps in processes revealed the following: Supplier relationships with significant spend were highly transactional Risk and relationship oversight was complex and arduous Frequent planning and forecasting changes led to additional costs, cancellation fees and high risk exposure Supplier contracts were often one-sided, with limited benefits for the client EXECUTION & BENEFITS Priya successfully crafted a robust category strategy to effectively manage and optimize the $120 million expenditure with suppliers . This strategy encompassed thorough market analysis, supplier evaluations, and strategic sourcing initiatives aimed at maximizing value and minimizing risks. Her next step was to streamline processes across the organization, while building a truly strategic procurement function. She built the foundation for strategic sourcing, supplier relationship management and contract lifecycle management. This fostered harmonization in supplier engagement, elevating the value extracted from deepened supplier relationships. By aligning procurement activities with organizational goals and industry best practices, she also fortified the supply chain operations to withstand dynamic market conditions and unforeseen challenges. In partnership with other stakeholder groups, she implemented robust visibility mechanisms within procurement , leveraging advanced analytics and reporting tools to enhance spend transparency and facilitate informed decision-making. This heightened visibility empowered stakeholders to proactively address potential bottlenecks, mitigate risks, and optimize resource allocation. Priya’s greatest achievement was the immediate identification of several contract re-negotiation opportunities that served as quick wins to show procurement value early. Priya developed the negotiation strategy and conducted negotiations with many key suppliers, ensuring alignment with the category strategy and business objectives. In an ever-changing landscape, Priya showed excellent insight and maturity in making agile decisions that would mitigate loss and risk throughout the lifecycle of the contract. She achieved >$15MM of cost savings for Year 1 & 2 through execution of the newly developed category strategy. By leveraging strengthened supplier relationships and employing rigorous negotiation tactics, she secured favorable contract terms and pricing arrangements, driving tangible bottom-line results while maintaining quality standards and service levels. Meet PRIYA KUMAR - OnDemand Professional Network Member Since 2018
By Jan Malasek 26 Dec, 2023
Many organizations benefit from implementing Contract Lifecycle Management System (CLMS). The key issues that implementation of a CLMS addresses include (i) lack of a central repository for contracts, documents, and reports, (ii) lack of direct access to documents outside of the contracts organization (email is used to share documents with employees who are not in the contracts organization) and (iii) potential document version control issues . OnDemand recently helped a client with their initial phase of Contract Lifecycle Management System implementation. I want to share the approach and lessons learned as I believe that you will find them helpful as your organization considers enhancements to the way contracts are managed.
By Jan Malasek 13 Sep, 2023
As companies move to IT Cloud-based computing infrastructure, many are finding that costs far exceed budgeted forecasts. Such was the case with an organization that recently moved to Cloud-based systems and needed to find ways to reduce and mitigate the unexpected costs.
By Jan Malasek 03 Aug, 2023
OnDemand Resources, the leading provider of independent project and interim talent in Strategic Procurement, Supply Chain and Operations is delighted to announce the addition of Tom Donatelli, a seasoned senior executive with significant experience driving cost reduction, process efficiency and business effectiveness across Fortune 500 companies as our new Vice President Client Services. In this role, Tom will work with clients on identifying new opportunities for enhancing their business results and engaging the right talent to achieve exceptional outcomes.
By Jan Malasek 13 Jul, 2023
Let’s say you’re committed to reducing costs whether it be direct materials or indirect materials and services. Where do you start? This article covers the essential steps for conducting a spend assessment which has a number of key challenges from “dirty data” to stakeholder alignment.
By Jan Malasek 10 May, 2023
By Steve Miller – https://www.linkedin.com/in/stevemiller-coo/ Mike Nolan of SourceSuite.com noted that “the first traces of procurement can be seen throughout ancient history, including the Egyptians in 3,000 BC.”1 Jose Ignacio Lopez de Arriortua made a company’s lead procurement role both famous and infamous over 30 years ago by first helping GM to “save billions of […] The post CPO Corner – Is Procurement Getting Better, Or Just Older??? appeared first on OnDemand Resources.
By Jan Malasek 29 Mar, 2023
March 29, 2023 OnDemand Resources, the leading provider of independent project and interim talent in Strategic Procurement, Supply Chain and Operations is delighted to announce the addition of Gary Long, a seasoned consultant with significant experience supporting clients in their efforts to achieve exceptional results as they pursue cost reduction and efficiency improvement initiatives to the […] The post Experienced Procurement and Supply Chain Consultant Joins OnDemand Resources To Enhance Client Service Capabilities appeared first on OnDemand Resources.
By Jan Malasek 21 Mar, 2023
A global confectionary company with HQ in the US has embarked on a mission to reduce cost and improve strategic supplier relationships.  While making strong progress in most areas, Brand and Marketing has been a challenge to engage due to their perception that Procurement lacks subject matter expertise.  In order to address this perceived shortcoming, […] The post BRAND & MARKETING SOURCING – ENSURE SUCCESS BY HAVING DEEP SUBJECT MATTER EXPERTISE, STARTING SMALL AND BUILDING STRONG RELATIONSHIPS appeared first on OnDemand Resources.
By Jan Malasek 08 Feb, 2023
Digitization of strategic procurement processes and capabilities has been the biggest advance in the world of procurement over the past 10 years. This enablement allows companies and their suppliers to be more efficient, effective and accurate and hence significantly adds to increasing value across the extended enterprise. Read how a global oil services company went […] The post Digitize Source-To-Pay For Improved Efficiency, Visibility and Accuracy appeared first on OnDemand Resources.
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