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Neutral or master vendor – what’s the difference?

Does your company use temporary workers? If so, you will probably either recruit in house or use one or more temporary recruitment agencies. You may be aware that there is a third option – using a managed service provider – and you may be wondering what the difference between neutral vendor or a master vendor is.

Managed services in the temporary recruitment space have been in existence for more than 20 years and the master vendor model – where just one recruitment agency provides all or most of the required workers – was the initial one. The model had emerged in a protectionist stance against the recruitment industry but it soon became evident that provider options were limited.

When wider sourcing solutions were demanded by hirers, alternative models began to emerge – ones where a bigger range of providers could be involved in the supply chain in order to fulfil hirers’ differing and growing requirements. The main one of these is the neutral vendor model. This is where a company such as de Poel takes on the management of a company’s temporary workers, fulfilling all requirements using their extensive panels of approved recruitment agencies.

Some master vendors conceded to requests to expand the supply base and agreed to compete alongside other providers, but they now had to re-examine their value proposition in the advent of such neutral vending solutions.

And the neutral vendor has a major advantage over the master vendor – its neutrality. It is the absence of any vested interest in the suppliers that removes the potential commercial conflict that inevitably arises when providers seek to be part of the supply chain and also assume responsibility for managing it.

For a neutral vendor such as de Poel, performance rests solely on the capability of the supply chain that it sources and manages. As such, the priority focus will always be to source and maintain the best on-going composite mix of providers for their clients.

A further advantage that an effective neutral vendor brings to bear is suppliers contributing to the improvement of services through market intelligence, ideas and innovations. Once all three parties – the hiring organisation, the neutral vendor and its supply chain – are interoperating to this extent, the true value of agency resource can be realised.

Partnering with a neutral vendor such as de Poel is a cost-saving alternative to the in-house or agency options. By working with de Poel, organisations can benefit from one outsourced solution to manage their entire temporary labour process and our leverage within the temporary recruitment sector can result in savings of 6-15% for our clients.

As a neutral vendor, with no formal affiliation with any one recruitment agency, we guarantee that the changes we implement regarding your temporary recruitment needs are always decided without bias so you can be confident that you are paying the best and right price. Plus, our income is only generated from the savings we make for you.

We continually re-evaluate the suppliers we use to ensure that you get the right person for the job at the right price from a quality-assured agency.

For more information on how de Poel can help you click here, or read our case studies to find out what our clients have to say.