Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Vendor Selection Best Practices - Crowe Mead

1,260 views

Published on

Six critical success factors for selecting and working with outsourced vendors. Don't make a decision without learning these first!

Published in: Business, Technology
  • Be the first to comment

Vendor Selection Best Practices - Crowe Mead

  1. 1. BETTER LEADERSHIP BLOGBRIDGING THOUGHT AND ACTION.VENDOR SELECTION BEST PRACTICES - A PRACTIONER’S PERSPECTIVE WWW.BETTERLEADERSHIPBLOG.COM 1 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  2. 2. KEY CONSIDERATIONS• What are the key considerations when selecting an out- of-house vendor?• What types of relationships are you trying to build?• What is the level of trust?• What are some best practices? WWW.BETTERLEADERSHIPBLOG.COM 2 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  3. 3. HOW TO EVALUATE AND SELECTSOURCING PROVIDERS Determine your sourcing strategy and what your needs are. Strategy will determine evaluation and selection Create structured, repeatable evaluation processes of the vendors expertise in order to drive efficiency and financial benefits Your strategy should be supported by a structured analysis of the sourcing options that balances against objectives. WWW.BETTERLEADERSHIPBLOG.COM 3 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  4. 4. HOW TO EVALUATE AND SELECTSOURCING PROVIDERS The evaluation process of outsourced service providers should entail four primary activities: I. Sourcing Strategy II. Evaluation and Selection III. Contract Development IV. Sourcing Management / Governance WWW.BETTERLEADERSHIPBLOG.COM 4 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  5. 5. HOW TO EVALUATE AND SELECTSOURCING PROVIDERS WWW.BETTERLEADERSHIPBLOG.COM 5 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  6. 6. THE EVALUATION PROCESS WWW.BETTERLEADERSHIPBLOG.COM 6 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  7. 7. VENDOR EXPERTISELOWEST COST IS ALWAYS THE BEST, RIGHT?•A service provider without industry specific business knowledgein your vertical is akin to a ship without a rudder: You’ll neverget where you need to go. 1. How much additional effort will be required on your part to train, educate and oversee the work? Will they be self-led or require your input at every turn? 2. What is the additional cost in this oversight? 3. What is the missed opportunity cost? WWW.BETTERLEADERSHIPBLOG.COM 7 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  8. 8. VENDOR EXPERTISECase Study:•Established vendor vs. new service provider • A reduction in Time-to-Market by 30% • Discussion of requirements was reduced by 35% • Time spent in testing decreased by 20% • Accelerated knowledge transfer reduces cost. Ultimately, an experienced vendor will bring new ideas, approaches and knowledge that can reap huge benefits in the long term. WWW.BETTERLEADERSHIPBLOG.COM 8 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  9. 9. CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTOR #1: The involvement of senior executives who havethe birds-eye-view strategy must be committed and involved in the vendorevaluationsCRITICAL SUCCESS FACTOR #2: Involve your IT organization early on to assurethat the service provider has a deep understanding of the requirements AND theindustry specific domain knowledge (They should assist in the development ofthe RFP, SOW, and KPI’s.)CRITICAL SUCCESS FACTOR #3: If you’re new to this process, hire an advisor. Planahead to establish a set of best practices, a communication plan, and specificgoals of the engagement. WWW.BETTERLEADERSHIPBLOG.COM 9 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  10. 10. VENDOR Evaluation – Weighted ModelCHANGE THE WEIGHTING TO FIT YOUR SPECIFIC NEEDS: WWW.BETTERLEADERSHIPBLOG.COM 10 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.
  11. 11. Better Leadership BlogAbout the Author:Crowe Mead has been leading global sourcing engagements for nearly 15 years. As a management consultant this experience has ranged across the Wireless, Technology, Energy, Manufacturing, Training and Travel industries. His work has has resulted in significant cost savings and improved quality for clients through activities such as product delivery, the build out of Offshore Development Centers, vendor selection and performance enhancement, reduced team attrition and the successful negotiation of nearly $300 million in vendor contracts. You can learn more about Crowe at www.betterleadershipblog.com WWW.BETTERLEADERSHIPBLOG.COM 11 of 11 ©2012 MAY NOT BE USED WITHOUT PERMISSION.

×