Consolidating Sourcing Vendors (Part 2 of 5)

Since 2001/02, globalization services have become popular, primarily as a method for leveraging labor arbitrage. Since the contracts were relatively small and the benefits seemed obvious, little central administration or management existed. Corporations are now realizing that dozens of providers are an unwieldy combination that creates unknown and unnecessary risk.

As a result many large companies are currently consolidating the number of service providers. Collabera provides a five-step process through which clients can migrate current providers into a consolidated and manageable list. Collaberas five step approach includes,
* Define Company Requirements: Through discovery interviews or simple survey techniques identify the business requirements and the gaps in the current capabilities.
* Inventory Vendor Relationships: Create a list of current service providers to bring providers into balance so that the company can control risk.
* Create Requirements Documents: Based on the business requirements and the inventory of current providers create a consolidated strategy. This involves defining the categories of providers needed.
* Select Consolidated Providers: Create a short list of finalized vendors and then through a variety of techniques such as RFPs, reverse bids, finalize the list of vendors.
* Transition: The most difficult phase, as it requires a change, but if done properly the corporate manageability can be increased dramatically.

Learn more at: http://www.collabera.com/consulting/articles/Service_Provider_Consolidation.jsp

Category:

Education

Tags:

• Sourcing
• providers
• vendor
• strategy
• offshore
• consolidation
• Collabera