One of the most important components of a successful business is the effective management of both internal and external workforces, as the efficiency and profitability of the business depend on the level of employee satisfaction and motivation. In this article, we will highlight the problems faced by businesses with ineffective workforce management, share powerful ways to solve them, as well as go into detail about SAP Fieldglass as a tool for external workforce management. 

Common Problems that Companies Face Due to Ineffective External Workforce Management

Today, hiring an external workforce, such as freelancers, contractors, or consultants, is a common practice in many companies. However, in order to manage an external workforce effectively, the entire process must be carefully planned and constantly monitored, which can sometimes be quite difficult. 

There are many reasons that can lead to ineffective external workforce management, from improper motivation systems to ignoring modern technology. As a result, the company suffers many negative outcomes, which we will discuss below.

Increased Costs

Re-working on a project due to missteps and delaying it lead to increased costs. Thus, the business becomes less efficient, which leads to lower profits and even stagnation in the company's development. 

Reduced Quality of the Final Product or Service

If external employees are not sufficiently motivated or skilled, the quality of the product may be adversely affected. This entails negative feedback from the customers and problems with the company’s reputation in the market. 

Failure to Meet Deadlines

Problems and delays with external employees can lead to missed deadlines, customer dissatisfaction, and, in some cases, fines and lost profits.

How to Improve the External Workforce Management with SAP Fieldglass

Effective management of the external workforce is a complex process, and many companies today implement SAP Fieldglass, because this system is designed specifically for this purpose. Below, we will tell you more in detail about how SAP Fieldglass helps to optimize the external workforce management and more. 

SAP Fieldglass is a cloud-based system for managing external resources and procuring services. In other words, it is a Vendor Management System (VMS) from SAP. The huge advantage of this platform is that it helps businesses to close all the issues related to the external workforce, namely to find, attract, manage, and pay them. What is more, the system also allows companies to analyze the work done and determine its effectiveness. 

Cost Reduction

SAP Fieldglass helps companies automate critical operations, streamline processes, and better manage external workforce costs. Thus, this system helps to reduce a company's operating costs. 

Improving Operational Efficiency 

SAP Fieldglass Services Procurement enables businesses to quickly adapt to changing needs and become more agile. This is extremely important in today's environment, as modern customers are not ready to wait and are willing to pay more for fast and high-quality work. 

Ease of Use

In addition to a user-friendly interface, SAP Fieldglass also provides an equally user-friendly mobile app. This allows users to quickly access the data they need in real time and efficiently manage their external workforce. 

Peculiarities of SAP Fieldglass Implementation

SAP Fieldglass integrates seamlessly with other SAP solutions, providing even more comprehensive management of all aspects, including procurement and finance. However, the SAP Fieldglass implementation process itself is not as simple as it may seem. It consists of several stages, so most companies prefer to entrust it to professionals. We suggest you familiarize yourself with the main stages of implementation.

Goal Setting. At this stage, it is important to define as precisely as possible why your business needs this system and what you expect to get as a result. The most common goals are cost reduction, compliance improvement, or efficiency increase. This is also where the strategy is developed to achieve the goals.

System Customization and Integration with Other Systems. This is where the necessary modules of SAP Fieldglass are defined, so that the system can perform the required functions. Then, it is integrated with existing systems of the company, for example, HR or CRM. 

Data Migration and Testing. At this stage, all existing contract and supplier data is migrated to the SAP Fieldglass. Functional testing is then performed to show how well the system works and to identify and correct errors. 

If you are on the lookout for a company that will conduct a quality implementation, we advise you to learn more about LeverX. This company has vast experience in this field, and its experts ensure a smooth transition, aligning the system with your company's operational needs while maximizing its potential. 

SAP Fieldglass plays an important role in optimizing the external workforce management and services procurement for an organization. This system optimizes external resources while enhancing the sustainability of the business. If you have experienced any of the problems described in this article, you should definitely think about improving external workforce management.