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Vendor Management Services with

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Vendor Management Services with

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    1. Vendor Management Services with Introductions It is important to us that you are here – Thank You for taking the time Allow us to help shape the way state government does business in the future Introductions It is important to us that you are here – Thank You for taking the time Allow us to help shape the way state government does business in the future

    2. S3 Overview Founded in 1990, Headquartered in Detroit, Michigan Nationally recognized and Certified Woman Owned Business Provider of Information Technology Consultants, Solutions, and Vendor Management Programs “Best Places to Work” in Southeast Michigan “Coolest Places to Work” in Southeast Michigan One of the largest Woman Owned IT Staffing companies in the Midwest 15 Consecutive years of growth Revenues expected to exceed $100 million in 2005 National and International Services – 12 U.S. Branches and 2 in Europe (London and Lithuania) Strong Industry experience including Government. THREE value-added categories of Service (IT Consultants, Solutions, VMP) S3 is a Provider of Service and Technology in the State of MichiganStrong Industry experience including Government. THREE value-added categories of Service (IT Consultants, Solutions, VMP) S3 is a Provider of Service and Technology in the State of Michigan

    3. S3’s Vendor Management Program (VMP) Structure: S3 serves as Customer’s Single Point of Contact (Vendor Manager) S3 manages all IT resource acquisition & administration S3 manages & selects vendor partners to support all dimensions of customer IT needs S3 welcomes as much or as little collaboration with Acquisition Services and DIT organizations as you desire. S3 is a non-participating resource provider S3 program has the ability to work with any software In order to stay competitive and enhance profitability, companies need to adopt supply chain management strategies: Supplier relationship management, Vendor management, Human capital management “Marry IT & Procurement cohesively achieving the same ultimate objectives for the State” **Collective Collaboration with Customer – as much as they want – their choice** S3 VMS process is Software Independent – ability to work with any of them – good relationship & existing contracts w/multiple software vendorsIn order to stay competitive and enhance profitability, companies need to adopt supply chain management strategies: Supplier relationship management, Vendor management, Human capital management “Marry IT & Procurement cohesively achieving the same ultimate objectives for the State” **Collective Collaboration with Customer – as much as they want – their choice** S3 VMS process is Software Independent – ability to work with any of them – good relationship & existing contracts w/multiple software vendors

    4. S3’s VMP The S3 MVP Provides: Process: S3 provides management of all logistics for resource procurement, vendor management, financial, and staffing for our customer. Savings: Through consistent process and aggressive rate card management, quality resources are engaged while costs are contained. Maintaining consistency and stabilization across the entire organization. Diversity: S3 actively engages, mentors, and supports true diversity suppliers, successfully resulting in substantial increases in real spend, real success, and real growth for motivated partners. Michigan-Based: S3 actively engages, mentors, and supports true MI-based suppliers, successfully resulting in substantial increases in real spend, real success, and real growth for motivated Michigan-based partners.

    5. S3’s VMP Benefits: Cost Savings in IT resources, acquisition Diversity Objectives achieved & sustained Michigan-based Objectives achieved & sustained Security; accurate ready access to real-time information Process Improvement, cost reduction Security: Vital for liability – I.e. Healthcare (JAHCO – S3 has A+ rating) - must have background checks and through reporting “in hand” when needed.Security: Vital for liability – I.e. Healthcare (JAHCO – S3 has A+ rating) - must have background checks and through reporting “in hand” when needed.

    6. S3’s VMP Features: Level, open competition among suppliers; all vendors receive requests at the same time Customer benefits from every vendor Create recognition and ease the ability to do business with the State of Michigan Increased access to Diversity and Michigan-based suppliers Growth for consistent suppliers Smooth transition with focus on sustained operations Timely, consistent access to diverse skills Consultants remain with current employer S3 will be: Ambassador to the Vendor and Advocate to the State *Represent the State as great opportunity – saving operating and marketing cost to vendors for fair open competition – maintain loyalty and vendor participation to the State – increasing MI-based business revenues, increasing spend in MI, increasing support and growth to the State. *** DATA – “your data S.O.M.” At your beckon call/onsite/in any format you choose ***S3 will be: Ambassador to the Vendor and Advocate to the State *Represent the State as great opportunity – saving operating and marketing cost to vendors for fair open competition – maintain loyalty and vendor participation to the State – increasing MI-based business revenues, increasing spend in MI, increasing support and growth to the State. *** DATA – “your data S.O.M.” At your beckon call/onsite/in any format you choose ***

    7. S3’s VMP Features (continued): Ability to create & successfully implement rate card, position descriptions acquired Strong outreach, communication with vendor partners, loyalty Reduced / eliminated marketing interruptions Onsite VMP staff at your beckon call with Real Time Data Useful, timely reporting to both Customer and vendor Highly flexible, responsive to changing customer strategies Capability to utilize req-to-check resource acquisition software. Product vs. Process An important point: Customers sometimes ask, ‘Why not simply implement a software tool?’ An interesting question, with some very straightforward answers:   Effective Supplier Management (MSP) is a process. Strategic Staffing Solutions knows that managing suppliers is a skill, combined with a streamlined, proven process for acquiring, assessing, managing, supporting, and releasing contract resources. The interaction between committed vendor partners in support of our mutual customer is dependent upon sustained one-on-one communication, feedback, personal and direct resolution of concerns. Our outreach to Diversity Suppliers and local Suppliers is second-to-none based directly on these principles. Contract services are services delivered by people, through people, for people; this can never be overlooked. Creative problem solving, receivables resolution, performance management, compliance management, creative contributions to customers – these can only be achieved through a dedicated, involved team. S3’s interactive management style, combined with proven successful processes, creates a dynamic, loyal, efficient, and cost-effective, aggressively managed program that cannot be duplicated by a tool.   Tools Will Support Effective Vendor Management. Strategic Staffing Solutions is adept at effectively deploying resource acquisition tools in support of our MSP services, just like many other professions, from accountants to engineers, use tools to support their objectives. S3 has effectively implemented a variety of software tools, and worked to incorporate chosen tools to deliver a streamlined, hassle-free Vendor Management service to our customers. We provide our Vendor Partners and Customers with whatever training and support they need, and work closely with software companies to create a seamless process for our customers.   Tools alone are not effective vendor managers, and cannot run programs. It is our experience, through implementation as well as through participation that tools alone never result in a satisfied customer or achieved objectives. This holds true especially where specific Local interests, Diversity and/or skills balancing needs to occur. Tools secure data flow, workflow, and storage only – they do not manage people, processes, performance, or objectives, nor do they correct trends or spot opportunities. Product vs. Process An important point: Customers sometimes ask, ‘Why not simply implement a software tool?’ An interesting question, with some very straightforward answers:   Effective Supplier Management (MSP) is a process. Strategic Staffing Solutions knows that managing suppliers is a skill, combined with a streamlined, proven process for acquiring, assessing, managing, supporting, and releasing contract resources. The interaction between committed vendor partners in support of our mutual customer is dependent upon sustained one-on-one communication, feedback, personal and direct resolution of concerns. Our outreach to Diversity Suppliers and local Suppliers is second-to-none based directly on these principles. Contract services are services delivered by people, through people, for people; this can never be overlooked. Creative problem solving, receivables resolution, performance management, compliance management, creative contributions to customers – these can only be achieved through a dedicated, involved team. S3’s interactive management style, combined with proven successful processes, creates a dynamic, loyal, efficient, and cost-effective, aggressively managed program that cannot be duplicated by a tool.   Tools Will Support Effective Vendor Management. Strategic Staffing Solutions is adept at effectively deploying resource acquisition tools in support of our MSP services, just like many other professions, from accountants to engineers, use tools to support their objectives. S3 has effectively implemented a variety of software tools, and worked to incorporate chosen tools to deliver a streamlined, hassle-free Vendor Management service to our customers. We provide our Vendor Partners and Customers with whatever training and support they need, and work closely with software companies to create a seamless process for our customers.   Tools alone are not effective vendor managers, and cannot run programs. It is our experience, through implementation as well as through participation that tools alone never result in a satisfied customer or achieved objectives. This holds true especially where specific Local interests, Diversity and/or skills balancing needs to occur. Tools secure data flow, workflow, and storage only – they do not manage people, processes, performance, or objectives, nor do they correct trends or spot opportunities.

    8. S3’s VMP S3 has several varieties of Vendor Management Services; some of our participating customers include: DTE Energy Bank One/First USA IBM Global Services First Union/Wachovia Bank AAA of Michigan Trinity Healthcare Systems Duke Energy AT&T

    9. An Example of One of S3’s Local Success Stories Intro to MVP: The Master Vendor Program “MVP” is our most comprehensive vendor management program. The customer has a single point of contact, S3, for complete management, financial, and staffing services. At S3, we tailor our Master Vendor Program to meet the unique goals of your organization. Intro to MVP: The Master Vendor Program “MVP” is our most comprehensive vendor management program. The customer has a single point of contact, S3, for complete management, financial, and staffing services. At S3, we tailor our Master Vendor Program to meet the unique goals of your organization.

    10. An Example of One of S3’s Success Stories Millions in Savings w/DTE’s program. S3 a participating resource provider Increased Diversity Spend (vendors) over 50% in the first 6 months (not including S3)Millions in Savings w/DTE’s program. S3 a participating resource provider Increased Diversity Spend (vendors) over 50% in the first 6 months (not including S3)

    11. S.O.M. Goal #1: Lower the State’s administrative burden in dealing with multiple contracting companies S3’s VMP is to be an enabler to achieve the State’s specific goals. We will design a customized VMP to meet the State’s specific needs and objectives. We’ll help ‘decorate’ the tree, not deliver a pre-lit one. S3’s Solution Single point of contact Single invoicing; full financial process management Full scale; full life cycle services including management of onboarding through offboarding and encompassing security. Reduced/eliminated marketing interruptions VMP remains primary communication with vendor partnersS3’s VMP is to be an enabler to achieve the State’s specific goals. We will design a customized VMP to meet the State’s specific needs and objectives. We’ll help ‘decorate’ the tree, not deliver a pre-lit one. S3’s Solution Single point of contact Single invoicing; full financial process management Full scale; full life cycle services including management of onboarding through offboarding and encompassing security. Reduced/eliminated marketing interruptions VMP remains primary communication with vendor partners

    12. S.O.M. Goal #2: Lower the Cost of Staff Augmentation S3’s Solution Implement and manage process improvement Create a consistent applied Rate Card for our Michigan region specifically {lower here than most other states} Reduce transaction based paperwork Create electronically supported transactions Lower vendor overhead cost Create more competition with the supplier base Multiple vendors, open competition will reduce rates Engage more Michigan based business partners Drive the Michigan economy

    13. S.O.M. Goal #3: Speed the Process of Bringing in Contractors After Budget Approval S3’s Solution Collaborative IT & Procurement & VMP approach to be successful. Measured SLA’s create obligations – (for VMP/vendors & the Customer) VMP measured on (acquisition time, submission of qualified pre-screened resumes, feedback time, placement ratios, turnover ratios, etc..) – hold Vendors to same performance-based SLA’s Customer measured on (feedback, acquisition, etc…)Collaborative IT & Procurement & VMP approach to be successful. Measured SLA’s create obligations – (for VMP/vendors & the Customer) VMP measured on (acquisition time, submission of qualified pre-screened resumes, feedback time, placement ratios, turnover ratios, etc..) – hold Vendors to same performance-based SLA’s Customer measured on (feedback, acquisition, etc…)

    14. S.O.M. Goal #4: A Nonexclusive Contract That Allows Multiple Companies to Participate {and Compete} S3’s Solution VMP is driven with the participation of multiple vendors to be successful Enlist multiple MI-based vendors to ensure the vendors place a high value on the opportunity with the State Manage the alignment of multiple vendors to increase competition and quality of service Manage multiple vendors to improve resource quality and availability Empower healthy competition among multiple vendors keep costs low as possible for the quality required

    15. S.O.M. Goal #5: Allow Fair & Competitive Competition Among All Suppliers S3’s Solution Local MWBE companies don’t have marketing capacity. Let VMP be the marketing for them – lower cost of their overhead staff, so they can provide best services available and put more local employees to work.Local MWBE companies don’t have marketing capacity. Let VMP be the marketing for them – lower cost of their overhead staff, so they can provide best services available and put more local employees to work.

    16. S.O.M. Goal #6: Raise the number of Michigan based businesses gaining revenue from the State of Michigan S3’s Solution Increased access; outreach to Michigan-based Suppliers Increased access; outreach to Diversity Suppliers S3 has existing partnerships with several strong performing MI-based suppliers that we will enlist in S.O.M. program for you S3 continuously recruits and solicits MI-based suppliers S3 is the incubator for growing MI-Based businesses, providing and supplementing potential vendors with full marketing, insurance, and financial needs for their success Access to local suppliers, talent, and special skills Strong outreach, communication with vendor partners, loyalty Detailed reporting on supplier spend through the VMP Michigan based businesses have grown because of S3 – we can give a list of customers and vendors that will demonstrate S3 does this consistently, and does is well! There are a lot of strong MI-based companies that are sure to be providers…. Let’s give the smaller one’s a equal opportunity.There are a lot of strong MI-based companies that are sure to be providers…. Let’s give the smaller one’s a equal opportunity.

    17. S.O.M. Goal #7: Allow the State to utilize existing contractors until their contracts expire S3’s Solution Align all existing vendors with S3’s VMP program All consultants remain with their current employer Smooth transition with focus on sustained operations All vendors have the option to participate Customer Executive commitment required for a successful implementation Reward vendors who align their strategies with the State’s goals and strategies S3’s program will create real opportunity for solid vendor partners focused on delivering the best to the State Notes: ***At a State of Michigan Vendor presentation, there were a line of vendors there waiting to speak to CJB & April as much as waiting to speak to the State Reps in attendance*** They believe in S3 and know they will receive true opportunity! How does the State want to do it? *Honest Business * Negotiate Rates (grandfather rates for existing contracts) for Strategic Vendors to transition to the program * Fee to continue w/VMP – vendors choice (all or none) Reward aligned vendors w/new business opportunity – recommend 2 yr contract * Option to grandfather rates – existing contracts – but caution the more success will be realized when all vendors are aligned and there are no “exceptions”. Once exceptions are eliminated, the State will realize full SAVINGS and BENEFITS that the program is offering. Not based on marketing – proven solid vendor performance. Recommend 30-60 day max time limit for alignment. Notes: ***At a State of Michigan Vendor presentation, there were a line of vendors there waiting to speak to CJB & April as much as waiting to speak to the State Reps in attendance*** They believe in S3 and know they will receive true opportunity! How does the State want to do it? *Honest Business * Negotiate Rates (grandfather rates for existing contracts) for Strategic Vendors to transition to the program * Fee to continue w/VMP – vendors choice (all or none) Reward aligned vendors w/new business opportunity – recommend 2 yr contract * Option to grandfather rates – existing contracts – but caution the more success will be realized when all vendors are aligned and there are no “exceptions”. Once exceptions are eliminated, the State will realize full SAVINGS and BENEFITS that the program is offering. Not based on marketing – proven solid vendor performance. Recommend 30-60 day max time limit for alignment.

    18. S.O.M. Goal #8: Pre-Screen candidates before sending them to State interviews S3’s Solution VMP provides management of all incoming resumes and suitability of candidates prior to sending to the State Its YOUR data, you own it, and we will be sure it will be onsite when you walk up and want it Pre-Screening and technical interviews are an imperative part of the program’s success VMP will manage all vendors through audits and hold them accountable for the suitability of the candidates Manage vendors to only one tier to keep data and information efficient and easily obtainable Notes: *Can not play in this space without pre-screen candidates and good recruiting practices – results will be measured. Spot checking references *Manage Vendors to provide best qualified/pre-screened resumes - Auditability / Accountability of Suitability. Notes: *Can not play in this space without pre-screen candidates and good recruiting practices – results will be measured. Spot checking references *Manage Vendors to provide best qualified/pre-screened resumes - Auditability / Accountability of Suitability.

    19. S.O.M. Goal #9: Background Checks S3’s Solution Background checks will be performed for all consultants – no exceptions S3 will have readily available data anytime you need it S3 will manage all suppliers to the accountability of completing background checks Candidates will not be permitted to start on assignment with the S.O.M. without being background checks being complete Security is vital to your organization Security: Vital For liability – Must have background checks and through reporting “in hand” when needed. Prior to Start: Vendor Confirmation ˇ          Re-confirm rate, start date, etc. ˇ          Send / confirm site material (parking directions, lobby, VM call number, dress code, work hours) ˇ          Review payment cycle and contractual obligations ˇ          Relevant ID information secured (address, SSN, DOB, I9 / proof of citizenship)   Complete Due Diligence Checklist ˇ          Criminal / Background Check initiated / completed / documented / filed ˇ          Drug Screen initiated / completed / documented / filed ˇ          Reference certification received / filed ˇ          Technical screen received / filed ˇ          Work history / resume validated / documented / filed   Complete Contractual Compliance Checklist ˇ          Confidentiality agreement forwarded ˇ          Code of Conduct / Policies forwarded for review   Manager Confirmation Process ˇ          Confirm start date ˇ          Begin proper process for materials ˇ          Notification of time authorization information   Facilities ˇ          Initiate facilities / equipment ID procurement process ˇ          Ensure contractor location with manager ˇ          Identify any and all assets assigned to the contractor ˇ          Initiate security process (badge and information systems) Initiate HR process Security: Vital For liability – Must have background checks and through reporting “in hand” when needed. Prior to Start: Vendor Confirmation ˇ          Re-confirm rate, start date, etc. ˇ          Send / confirm site material (parking directions, lobby, VM call number, dress code, work hours) ˇ          Review payment cycle and contractual obligations ˇ          Relevant ID information secured (address, SSN, DOB, I9 / proof of citizenship)   Complete Due Diligence Checklist ˇ          Criminal / Background Check initiated / completed / documented / filed ˇ          Drug Screen initiated / completed / documented / filed ˇ          Reference certification received / filed ˇ          Technical screen received / filed ˇ          Work history / resume validated / documented / filed   Complete Contractual Compliance Checklist ˇ          Confidentiality agreement forwarded ˇ          Code of Conduct / Policies forwarded for review   Manager Confirmation Process ˇ          Confirm start date ˇ          Begin proper process for materials ˇ          Notification of time authorization information   Facilities ˇ          Initiate facilities / equipment ID procurement process ˇ          Ensure contractor location with manager ˇ          Identify any and all assets assigned to the contractor ˇ          Initiate security process (badge and information systems) Initiate HR process

    20. S3’s Commitment to the State of Michigan ***S3 is so Confident we will meet all your goals, we want SLAs in the contract showing complete accountability – More aggressively support the success of the program and will agree to being monitored to do this!*** Basic Features Zero cost to State of Michigan to engage S3 as their Master Vendor Program Provider Instantly open supplier competition Rate card creation & implementation Strong outreach & increased communications Highly flexible program Useful, timely reporting Single point of contact & responsibility Software independent Basic Benefits Cost Savings (15-20%, double industry standard) Cost Management and control Increased access to Diversity & MI-based Suppliers Accuracy / consistency in resource information Single source for billing Enhanced quality and order fulfillment Reduction in marketing interruptions Improved timeliness, availability, resource quality Resource stability Consistent process provides accountability & security COMPLIANCE and SLAs  S3 MSP Benefits Compliance whereby S3 institutes a “No Tolerance” policy. Cost saving in overall resources and acquisition of resources Diversity objectives in a sustainable fashion Process Improvements resulting in cost reductions New, Strategic skills acquisition in a proactive method Restoration of customer focus on their primary goals Improved timeliness and quality of service Improved quality and availability of resources S3 MSP Features Ability to create & successfully implement a true rate card Strong, consistent, useful position descriptions Strong Vendor loyalty - outreach and communication program Useful & timely reporting to both customer and vendors Highly flexible Master Service Program responsive to the continually evolving organizational needs. ***S3 is so Confident we will meet all your goals, we want SLAs in the contract showing complete accountability – More aggressively support the success of the program and will agree to being monitored to do this!*** Basic Features Zero cost to State of Michigan to engage S3 as their Master Vendor Program Provider Instantly open supplier competition Rate card creation & implementation Strong outreach & increased communications Highly flexible program Useful, timely reporting Single point of contact & responsibility Software independent Basic Benefits Cost Savings (15-20%, double industry standard) Cost Management and control Increased access to Diversity & MI-based Suppliers Accuracy / consistency in resource information Single source for billing Enhanced quality and order fulfillment Reduction in marketing interruptions Improved timeliness, availability, resource quality Resource stability Consistent process provides accountability & security COMPLIANCE and SLAs  S3 MSP Benefits Compliance whereby S3 institutes a “No Tolerance” policy. Cost saving in overall resources and acquisition of resources Diversity objectives in a sustainable fashion Process Improvements resulting in cost reductions New, Strategic skills acquisition in a proactive method Restoration of customer focus on their primary goals Improved timeliness and quality of service Improved quality and availability of resources S3 MSP Features Ability to create & successfully implement a true rate card Strong, consistent, useful position descriptions Strong Vendor loyalty - outreach and communication program Useful & timely reporting to both customer and vendors Highly flexible Master Service Program responsive to the continually evolving organizational needs.

    21. The State’s Goals … Future with S3 Basic Features Zero cost to State of Michigan to engage S3 as their Master Vendor Program Provider Instantly open supplier competition Rate card creation & implementation Strong outreach & increased communications Highly flexible program Useful, timely reporting Single point of contact & responsibility Software independent Basic Benefits Cost Savings (15-20%, double industry standard) Cost Management and control Increased access to Diversity & MI-based Suppliers Accuracy / consistency in resource information Single source for billing Enhanced quality and order fulfillment Reduction in marketing interruptions Improved timeliness, availability, resource quality Resource stability Consistent process provides accountability & security Basic Features Zero cost to State of Michigan to engage S3 as their Master Vendor Program Provider Instantly open supplier competition Rate card creation & implementation Strong outreach & increased communications Highly flexible program Useful, timely reporting Single point of contact & responsibility Software independent Basic Benefits Cost Savings (15-20%, double industry standard) Cost Management and control Increased access to Diversity & MI-based Suppliers Accuracy / consistency in resource information Single source for billing Enhanced quality and order fulfillment Reduction in marketing interruptions Improved timeliness, availability, resource quality Resource stability Consistent process provides accountability & security

    22. Why S3… to name a few Michigan-based, Woman-owned, Success story We’ve done it, continue doing it, are better than anyone else at doing it, and we are committed to do it again for the State of Michigan Willingness to create a customized program for the State’s specific goals S3 is a partner to the State’s agenda to create more opportunity for Michigan-based business Key Executives at S3 are dedicated to ensure the success of expanding MI-based business Do not want to participate in staff augmentation S3 has nothing to lose by doing this right for the State of Michigan No current business with the State, no preconceived impressions; focused on the State’s interests only Well managed, financially strong organization with 15 years of consecutive growth

    23. Thank You!

    24. …and who to call

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