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What has gone
wrong?
•
•
•
•

•
•

Definition of the need?
Supplier selection?
Contract model?
Customer – supplier
collaboration?
Risk manaagement?
Management of
unexpected events?
Competitive tendering
useful or not?
Outsource or insource?
Sounds expensive!
… compared to what?
Key questions
• What is the importance of services for
companies?
• What is the range of external services that
needs to be managed by organizations?
• What tools are required in the business
services purchaser’s toolbox?
Share of service purchasing for all Finnish
companies

Lähde: Tilastokeskus
Share of business services is larger than
generally believed
The role of externally bought services in the value creation of firms.

Lähde: ETLA / Seppälä 2013
The broad range of business services
Industrial services,

Knowledge-intensive services,

with an emphasis on increased
efficiency of the buying
company’s activities

with an emphasis on innovation and
enhanced value-creation of the buying
company

Temporary
labour

Healthcare

Technical
consulting

ICT services
Office
supplies
Cleaning

Catering

Security
Travel

Industrial
maintenance

Marketing
& media

Technology &
innovation related
services

Product design
services

Logistics
services
Training
Traditional purchasing
Traditional purchasing is said to focus on
the relatively simple context of a large,
powerful customer buying a
straightforward product from a smaller,
subservient supplier selected from among
a large number of similar candidates.
Today, purchasing is too important to be
left to the purchasing department alone!
Service purchasing process
A-R-A –model for understanding and
analyzing the supply market
RFI - RFP - RFQ
Request-ForInformation

Request-ForProposal

Request-ForQuotation
Four methods for focusing a service
supply contract
Three key points
• Purchasing business services brings new types
of challenges for traditional purchasing.
• Tools and methods improve the effectiveness
of purchasing business services.
• Purchasing has a direct impact on profitability,
but purchasing business services may
influence the buying company’s performance
far into the future.
Thank you!
jussi.heikkila@tut.fi
mervi.vuori@aalto.fi
jari.laine@aalto.fi
http://www.teknologiainfo.net/Publications-InEnglish/?groupId=19760&productId=20296

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What Has Gone Wrong in Service Purchasing