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Corporate Recruiters and Supply Chain Managers Face Similar Challenges

Supply chain managers and recruiters have more in common than you think.

 

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Corporate supply chain managers are constantly managing uncertainties and variabilities that are often beyond their control. Demands for products ebb and flow. Parts that were once easy to source become scarce. Needs for certain parts become critical overnight. Similar issues exist for corporate recruiters. Recruiters, especially those at small and medium-size businesses, are often forced to be reactive to market demands. The need for workers with popular skills sets quickly become difficult and costly to attain. Unexpected attrition causes demand to be critical in a moments notice.

Inventory optimization is key.

Ask any supply chain manager about the importance of managing inventory and they’ll tell you it’s the key to a successful start of their manufacturing run. They’re constantly monitoring their inventory of parts and materials. Will they have the right resources on hand to produce goods to take to market? Similarly, recruiters have the same concerns about inventory. Are there available applicants to create a pipeline that will yield hires?

In supply chain terms, having a huge inventory sitting idle a bad thing. That is, having a warehouse full of widgets that aren’t being used is hugely wasteful. In the corporate recruiting world, an applicant tracking system full of candidates waiting to be reviewed is even more costly. Workers don’t sit on the shelf like widgets do. Applicants are a perishable resource. The most wasteful things you can do in recruiting is squander an inventory of talent.

Pro Tip: If your applicant tracking system is full of applicants that you haven’t processed, you need to optimize the inventory management phase of your recruiting supply chain. Attracting applicants in a tight employment market is expensive. If there is a bottleneck at the inventory processing stage of your recruiting supply chain then the rest of your hiring process will be perpetually ineffective. 

Constantly monitoring for and managing bottlenecks is critical to success.

Supply chain managers are constantly monitoring their processes to detect bottlenecks. One stalled phase of the process can create a catastrophic (and wasteful) bottleneck. Supply chain managers are meticulous about making sure “the machine” is working properly. Employers suffer bottlenecks very similarly. For example, applicants commonly sit in recruiters’ and hiring managers’ inboxes for weeks and are never processed. This type of bottleneck breaks the recruiting supply chain and is further compounded due to the perishability of candidates. Employers, like supply chain managers, must constantly monitor the discrete phases of their recruiting process to eliminate bottlenecks before they become major problems. Remember, like an assembly line, a recruiting process can only move as fast as the slowest stage.

Supply chain managers are constantly looking for ways to optimize their processes and procedures to improve time-to-market and the quality of their goods. Smart employers do the same by avoiding over customization of their recruiting stages and by eliminating any non-critical stages. And, like supply chain managers, corporate recruiting leaders are always looking for way to simplify their processes and eliminate areas of inefficiency.

Pro Tip: Choose an applicant tracking system that is built like a supply chain management tool. One of the core advantages that sets Newton apart from other applicant tracking systems is Newton’s inherent ability to create a linear process with critical stage-gates that drives the decisions that drive hiring. Green is go. Red is no. In between is a flexible process that works for just about every company on the planet. 

 

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About Andy Chan