• en
  • de
Si2 PARTNERS
  • About us
    • Mission and Values
    • The Si2 Approach
    • Management Team
    • In the News
    • Offices
  • Contact us
  • Join Us
    • Our business
    • Our People
    • Compensation
    • Who we are looking for
  • Home
  • Capabilities
  • Solutions
    • Si2 On-Demand
    • Consulting Solutions
      • Strategy
      • Innovation and Design
      • Go To Market
        • Market and Customer Research
        • Optimizing Customer Journeys
        • Sales and Marketing Organisation
      • Organizational Transformation
      • Service Performance Management
        • Service Operations Strategy
        • Lean Six Sigma Service Management
      • Technology
      • After Sales Services
        • Field Service Management
        • Spare Parts Management
      • Industrial Asset Management
      • Outcome based Services
      • Service Procurement
    • Business Execution
      • Business Development
      • Coaching to Business Objectives
      • Facilitating Change
      • Mergers and Acquisitions
      • Mobilizations and Contract Set Up
      • Turnarounds and Restructuring
      • Interim Management
    • Talent Management
  • Industries
    • Manufacturing and Engineering
    • Industrial and Technical Services
    • Infrastructure and transport systems
    • Utilities and New Energies
    • Sharing Economy
    • Investors and Startups
  • Network
  • Resources
  • Service in Industry Hub
  • Service Leaders Network
  • About us
    • Mission and Values
    • The Si2 Approach
    • Management Team
    • In the News
    • Offices
  • Contact us
  • Join Us
    • Our business
    • Our People
    • Compensation
    • Who we are looking for
Feature image
  • Home
  • Capabilities
  • Solutions
    • Si2 On-Demand
    • Consulting Solutions
      • Strategy
      • Innovation and Design
      • Go To Market
        • Market and Customer Research
        • Optimizing Customer Journeys
        • Sales and Marketing Organisation
      • Organizational Transformation
      • Service Performance Management
        • Service Operations Strategy
        • Lean Six Sigma Service Management
      • Technology
      • After Sales Services
        • Field Service Management
        • Spare Parts Management
      • Industrial Asset Management
      • Outcome based Services
      • Service Procurement
    • Business Execution
      • Business Development
      • Coaching to Business Objectives
      • Facilitating Change
      • Mergers and Acquisitions
      • Mobilizations and Contract Set Up
      • Turnarounds and Restructuring
      • Interim Management
    • Talent Management
  • Industries
    • Manufacturing and Engineering
    • Industrial and Technical Services
    • Infrastructure and transport systems
    • Utilities and New Energies
    • Sharing Economy
    • Investors and Startups
  • Network
  • Resources
  • Service in Industry Hub
  • Service Leaders Network
  • login/signup

Service Procurement

While significant effort is invested in finding better ways to market and sell services, not nearly as much is being done in improving services procurement. Yet as importance of services and bundled solutions grows and the trend towards outsourcing and greater division of labor strengthens, scope, scale and depth of service based contracts  increases  and so does their impact on financial and operational performance of buyers. Procuring services often becomes strategically significant.

Customers  have numerous reasons for expanding service bundle and solutions procurement; For example strategic supply-base reduction is a necessary first step to accessing benefits such as improved performance or sustained cost reductions which require close cooperation and partnerships with suppliers -as it is virtually impossible to develop the needed close relationships with too many. Furthermore buyers’ purchasing infrastructure cannot cope with a large number of outcome or performance based services which require active management of performance rather than simple monitoring of costs against activities. Finally buyers have often the incentive to pressure suppliers to enlarge service contract scope (add activities) or to increase scale (serve more of the customers operations) to reduce direct and indirect cost of delivery or standardize processes across operations.

Furthermore buying services or products entails qualitative differences, as the value of services depends significantly on customization of offerings, the ability of supplier and customer to cooperate and “co-create” value and the contract which sets the framework for the relationship over longer periods of time. Service procurement is therefore far less straightforward than products and should involve interested participants across the impacted units and functions of the organization.

We work with our clients to improve service and solution procurement, whether for particular large initiatives and complex contracts to helping create optimized procurement processes.

We usually start by helping clients deeply understand their requirements, segmenting services to be bundled in ways that are logically compelling in terms of objectives and based on what suppliers can actually provide; analyzing alternatives and performing “make or buy” feasibility studies, taking into account relevant cost and performance levels and setting baselines.

Once scope, scale and depth are decided we help preselect suppliers and design the necessary RFI and RFP documentation. We then help our clients scrutinize, compare and evaluate bids and proposals, define deliverables, outcomes and required service levels, conduct risk assessment, select preferred suppliers and develop, structure and negotiate contracts to manage risks, align incentives and manage performance and compensation.

Tweet
Email
Print
PDF

Our capabilities

  • Strategy
  • Innovation and Design
  • Go To Market
    • Market and Customer Research
    • Optimizing Customer Journeys
    • Sales and Marketing Organisation
  • Organizational Transformation
  • Service Performance Management
    • Service Operations Strategy
    • Lean Six Sigma Service Management
  • Technology
  • After Sales Services
    • Field Service Management
    • Spare Parts Management
  • Industrial Asset Management
  • Outcome based Services
  • Service Procurement
Si2 PARTNERS
ABOUT Si2
  • Mission and values
  • The Si2 Approach
  • Team
  • In The News
  • Offices
  • Join Us
  • Contact
CAPABILITIES
  • Strategy
  • Inovation and Design
  • Go to Market
  • Organizational Transformation
  • Service Performance Management
  • Technology
  • After Sales Services
  • Industrial Asset Management
  • Outcome Based Services
  • Service Procurement
SOLUTIONS
  • Si2 On Demand
  • Consulting Solutions
  • Business Execution
INDUSTRIES
  • Manufacturing and Engineering
  • Industrial and
    Technical Services
  • Infrastructure and Transport Systems
  • Utilities and
    New Energies
  • Sharing Economy
  • Investors and Startups
CONNECT

Please send us an email at .

Please note that every attempt will be made to respond to inquiries within 24 hours. To reach us by phone, visit the office page of the office nearest to you.

© Si2 PARTNERS. All rights reserved. | Terms and conditions | Privacy policy