Are you looking at the source of your IT projects before you plan how to source them?
Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing
We have reviewed Vendor Introduced Needs that create new sourcing projects in a company and the steps you can take to begin getting the data and information the business needs to make the right sourcing decisions. We finish the series today by reviewing Market Introduced Needs.
Market Introduced Need – Many times the local or global market or both introduce needs before you even have a chance to decide that a need even sexists. Fuel price increases, rising paper and postage expense, Federal laws, regulations, trade laws, import and export evolution and other items are all happen or are happening in markets around the world that create needs where none existed before.
Obviously the effect that rising fuel prices have on almost every aspect of sourcing have been widely written about by many authors and bloggers but what about the increases in paper and postage that are happening that demand companies to move toward digital statements, communications, invoices, etc.? What about new regulations that require additional testing of your fleet emissions, your refrigeration/air conditioning units, or your disposal of waste? These create sourcing projects which are generally high profile and high urgency and include data that your sourcing professionals have little or no experience with.
For many of these market introduced needs project begin with a thorough understanding of why the changes have occurred in the first place and what they truly mean in relation as to how you conduct business. Many times companies jump to get a new service based on evolving laws and regulations that don’t even apply to their business model. A 3rd party eProcurement partner should be able to help you evaluate your specific needs.
Once your need are determined it will be important to find a sourcing provider that can deliver the best value for your business including a best case strategy with various implementation scenarios over time that ultimately get you to best practices at the best cost and value. While price is examined, many times the fit a vendor has with your organization will be equally important because as mentioned above these projects tend to be high profile and having the cheapest company perform the product or service in an inadequate manner can cost the company millions down the road. Your eProcurement partner should be able to provide analysis in this area as well.
For more information about how you can begin to take a look at your companies new projects more effectively, please contact a SafeSourcing Customer Service Representative.
We look forward to your comments.
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