Establishing a Purchasing Category to Optimize and Manage Contingent Workforce Spend : Case Company: Rituals Cosmetics Enterprise B.V

Abstract

This thesis investigates how to establish and optimize purchasing category for contingent workforce focusing on interim agency and freelancer spend at cosmetics retail company Rituals Cosmetics. The primary goal is to bring this category under procurement managed spend, ensure compliancy, mitigate risks and increase visibility and transparency. There was a pressing need in the case company to involve procurement in structuring the supplier base, negotiating rates and contracting, in order to ensure compliance and mitigate risks.

This thesis starts by exploring how the contingent workforce is currently contracted and what needs to be implemented to optimize the category. Data was collected by using qualitative methods through structured interviews of hiring managers, observations and analysis of data and internal documents. Data were analysed by using category management methodologies and spend analysis. The theoretical framework included the topics of category management, benefits of category management and definitions of contingent workforce.

The findings reveal the importance of taking a strategic perspective to the category management at the case company. The outcomes of the thesis help understand the contingent workforce category by identifying the key development areas and establishing a procurement managed category of it. The thesis developments resulted in a positive trend in decreasing the spend and hiring manager satisfaction on the contracting process. The thesis also suggests that, to maximize the value of the contingent workforce category, it is recommended to consider tooling and contract a managed service provider.