SOW for Procurement Services

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    • #292092

      A Procurement Shared Services function is looking to implement a small scale business process outsource (BPO) for sourcing and category management functions, with the potential for tactical procurement operations for specific categories, and market/data analytics.

      Considering this is not a complete outsource, the Scope of Work for services may be scaled down from the typical agreement.

      Does your company have recommendations or a sample SOW for this type of Procurement service?

       

      If you wish to donate any templates or tools to this inquirer or to the SIG Resource Center, please feel free to email Mary Zampino directly at [email protected]. All templates and tools can be scrubbed by SIG and approved by you before posting.

       

       

    • #292966

      Recommendations
      · Procurement Outsourcing brings significant benefits, and is definitely worth the effort, but it is HARD – it is unlike other towers of BPO, in which a lift-and-shift methodology is the easiest way to implement change. A more gradual ramp of services (more out-tasking than outsourcing), timed with organizational change readiness and experience gained by the provider, is the optimal implementation approach.

      · Unlike traditional outsourcing, it is difficult to move source-to-contract tactical work offshore to take advantage of labor arbitrage, because of the high degree of interaction with internal stakeholders. A significant portion of outsourced work should remain onshore.

      · Whether or not to outsource high value strategic Category Management needs to be thought through very carefully, on a category-by-category basis. Certain non-core categories can be outsourced more quickly, but core categories need to be evaluated over time. Some companies are able to build a truly strategic Category Management function, while others struggle and should outsource more categories to gain the benefits that Procurement Outsourcing can bring.

      Welcome to Denali
      Since 1996, Denali has been on a mission to help our customers better manage their spend. We have a very unique business model: we are not a consulting firm, nor a traditional outsourcer – but rather a strategic partner to augment procurement teams through managed services, to help extend their reach via out-tasking, and address more spend within the enterprise. We do this by separating the tactical project-level work from the strategic work; our team does the tactical work of data management, RFX management, contracting and supplier management, freeing up your team to focus on the real strategic work of category management and stakeholder management.

      Paired with your team in this new operating model, we help to drive more value to the enterprise with a greater velocity and volume of procurement activities. Together, we do more.

      Denali’s on-demand, product-like service offering is easy for a procurement team to implement and scale-up as they see value in working together and want to generate more positive results. We have clients on a large spectrum; clients who use us to out-task a few categories or functions, and others who partner with us to outsource their whole procurement organization, sourcing, contracting, non-core and select core category management, and supplier relationship management.

      RFP Best Practices
      We have a number of sample RFPs/SOWs that we can share with you. Please just contact us, either through SIG or directly, and we will send them along.

      Thank you!

      Alan C Veeck | Denali Sourcing Services
      Vice President
      1251 Waterfront Place, Pittsburgh PA, 15222
      Work: 412.228.5111 | Mobile: 412.215.9028 | Fax: 412.904.1925
      [email protected] | http://www.denaliusa.com

      Our latest whitepapers: http://denaliusa.com/insight/whitepapers

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