Master Vendor Managed Service Programme Model | Enterprise Solutions at Hays
MASTER VENDOR MSP MODEL
A Managed Service Provider where the provider and its sister companies have the first opportunity to recommend and place candidates or resources is called a master vendor model. This may also be referred to as “tier zero”. A single supplier will be used for managing and completing your temporary and non-permanent exerting hiring needs. Roles that cannot be filled by the primary supplier will be sent to secondary staffing suppliers.
Why use a Master Vendor MSP model?
Compared to other models you only have one supplier which enables you to have a better understanding of what the client needs, they will take full responsibility for providing temporary workers.
The main benefits of using a master vendor are:
| Cost-effective model | Better understanding of what the client needs | Fastest way to engage workers |
| Suited to admin or generalist roles as well as professional/IT workers | Only one primary supplier, easier to make them accountable | Simplified billing |
Typically, the fastest and most cost-effective way to engage workers, it is particularly good for high volume roles. Providing highly predictable costing for better budget forecasting, simplified billing and accountability from a single supplier.
According to Staffing Industry Analysts’ MSP Global Landscape report 2019 around 32% of organisations with a MSP in place leverage a master supplier model.
How is the master vendor MSP model different to other models?
With a master vendor model only one supplier will be used for managing and completing your temporary and non-permanent external hiring needs. Whilst if you use a Neutral Vendor they will use a number of different suppliers, this can result in the hiring take longer and costing additional spend. Master Vendor MSP is a much more cost-effective model and is suited to generalist and also professional roles, whilst Neutral Vendors is best for specialist roles.
One of the biggest challenges you may have to overcome with a Master Vendor MSP is bad experiences or misconceptions about the supplier by end users. However, a good MSP provider will come prepared with the data, change methodology, communications, approach and outstanding service that rapidly overcomes and alleviates these fears.
The Hybrid MSP model is best suited for the full workforce as it offers you the best of Master Vendor and Neutral Vendor models.
