Staffing Suppliers: We Don’t Keep Score. We Change the Game

Many Managed Services Providers (MSPs) have their own supplier division that competes with their clients’ suppliers, and as a result, the supplier relationship suffers. Suppliers don’t want to give those MSPs their best rate, for fear the MSP will undercut them. The MSP doesn’t want to invest in the supplier or provide them with real best practices, fearing it might create competition for their affiliated staffing division. The results of this strategy are that staffing suppliers are measured with precision, but they are rarely mentored.  

The result? Programs that track fill rates, time to submit, and compliance scores with clinical accuracy yet miss the real opportunity: helping suppliers evolve into high-performing, strategically aligned partners who are motivated to deliver their best talent, their best speed, and their best service. 

At nextSource, scorecards are only the starting point. What truly sets us apart is what happens after the data is shared. Our philosophy of putting people first extends to our supplier network, which is why we don’t just measure supplier performance. We develop it. 

Why Performance Development Drives Strategic Goals 

Performance management ensures accountability, transparency, and alignment with program objectives, but relying solely on KPIs is shortsighted. It treats staffing partners as interchangeable vendors rather than strategic contributors to a client’s talent strategy. 

A supplier’s performance directly impacts business outcomes through: 

• Time-to-fill affects productivity and operational continuity. 
• Candidate quality determines project success and hiring manager satisfaction. 
• Retention drives cost control and reduces the disruption of constant backfilling. 

By focusing on development, not just measurement, we elevate supplier capabilities and align their priorities with the strategic objectives of the program. This results in more than better numbers. It creates a supplier community that is agile, motivated, and invested in long-term success. 

How We Turn Data Into Development 

Our supplier performance model is built on measurement plus action, ensuring that every data point becomes a catalyst for improvement. We combine real-time scorecards with structured monthly reviews to accelerate feedback loops and drive measurable change. 

Our approach includes: 

• Real-time scorecards so suppliers see their performance instantly, allowing for same-week adjustments in sourcing strategies, recruiter allocations, and candidate engagement. 
• Monthly performance reviews to analyze trends, identify recurring challenges, and agree on specific improvement actions with clear owners and timelines. 
• Regular, candid conversations to address root causes rather than surface-level symptoms, building trust and shared accountability. 
• Insight sharing highlights opportunities, such as skill set demand trends or market rate intelligence, to help suppliers win more requisitions. 
• Collaborative problem-solving so improvement strategies are co-created, not dictated. 
• Mutual advocacy to ensure both client and supplier priorities are aligned and supported. 
• Investment in education through targeted training, best practice exchanges, and innovation workshops to strengthen recruiting efficiency and compliance readiness. 

The impact: Suppliers gain the tools, knowledge, and confidence to self-correct faster, deliver stronger candidates, and operate with a clearer understanding of what will make them successful in the program. 

Building True Partnerships That Last 

Supplier development is built on relationships, and relationships require intentionality, dependability, and mutual trust. At nextSource, we focus on creating true partnerships that stand the test of time by: 

• Taking the time to understand each supplier’s business model, market strengths, and operational challenges. 
• Maintaining two-way feedback channels so suppliers feel heard and empowered to raise issues early. 
• Celebrating wins together, reinforcing high performance with recognition and visibility. 
• Partnering on market intelligence sharing and talent pipeline initiatives to prepare for upcoming demand. 
• Recognizing suppliers as critical stakeholders, not interchangeable service providers. 
• When suppliers feel respected and that we are invested in their success, they respond with higher engagement, greater creativity, and more substantial alignment to program objectives, which directly benefits the client. 

The Measurable Advantage of Supplier Development 

When supplier development is built into the DNA of an MSP program, the benefits go far beyond simply improving KPI scores. Quality increases as candidate submissions align more closely with hiring manager needs, reducing the time and effort spent screening. Speed improves as suppliers anticipate requirements and allocate their best recruiters to the program, shrinking the time to fill and reducing the costly downtime caused by unfilled roles. 

Retention rates increase as contingent workers experience a smoother onboarding process, clearer expectations, and better ongoing engagement from well-trained suppliers, lowering turnover and the expenses associated with constant replacements. Innovation thrives as suppliers introduce new sourcing channels, creative candidate engagement methods, and technology-enabled efficiencies. 

Perhaps most importantly, supplier development elevates the reputation of the entire program. When a program is known for valuing, developing, and partnering with suppliers, it attracts the best in the market, creating a competitive advantage that cannot be replicated by measurement alone. 

At nextSource, we don’t just measure performance. We build it because when your suppliers win, your program wins. Supplier performance is not just about numbers but about nurturing strong partnerships that drive long-term success. At nextSource, our Managed Service Provider solution transforms supplier management into supplier development by combining data insight, collaboration, and continuous improvement. Learn how our MSP programs help you build high-performing supplier communities that deliver exceptional results. Explore our Managed Service Provider solution.