Every procurement organization strives to continually meet its sourcing strategy objectives. Whether those objectives involve reducing supplier spend, managing risk or complying with industry regulations, procurement executives must make decisions about which suppliers to do business with – and how much business. Such decisions first rely on complete, accurate spend data and on the ability to analyze that data for trends and outliers in procurement activities. But even with comprehensive visibility into procurement, determining optimal supplier spend depends on the ability to balance hundreds or thousands of variables for the best result. Procurement organizations need a reliable way to model their procurement spend – a method that factors in all the nuances of complex supplier relationships and allows for easy "what-if" calculations.
- From whom should we buy?
- Should we spend more or less
with a given supplier?
- What should we buy from a given supplier?
- How should we alter our buying practices?
A sourcing strategy should focus on delivering maximum value to each area of the business, by delivering optimum cost, service and quality whilst retaining the appropriate in-house/outsource mix. A decision to outsource, multi-source, off-shore or in-source a particular service can have profound implications for the organisation, and must be considered and justified appropriately. Version8 delivers value by developing a thorough understanding of the internal and external drivers, and using our market knowledge and skills to recommend the most appropriate sourcing strategy.
Effective benchmarking of IT services can demonstrate value for money or provide powerful evidence for improving quality, performance and cost effectiveness. However without an appropriate means of comparing very different services, traditional benchmarking often fails to get the job done. Version8 is proving time and again that benchmarking can deliver effective and consistent results. Our methodology relies on strong market knowledge, a detailed understanding of the commercial, technological and operational aspects of the service, and a flexible approach to produce meaningful and objective results. Above all, it requires a trusted partner with an understanding of your business to see through the complexity and provide meaningful results. Version8 acts as trusted advisers; benchmarking cost, service levels, performance, and value for money. We provide benchmark advice either to one party in a contract, or as a joint exercise in a more formal contractual exercise. Unlike ‘traditional’ benchmarking - which relies heavily on a “database” approach - the Version8 methodology relies on a detailed understanding of the client’s contract and service and how it compares to changing business needs.
Effective management of the procurement process is critical to delivering a high value contract and developing strong supplier relationships. Version8 has proven skills, methodologies and the experience needed to drive through complex sourcing solutions. Similarly, we have the flexibility to engage with clients when required throughout a sourcing programme: sourcing strategy, requirements definition, supplier identification, tender documentation, supplier evaluation and contract writing, negotiation and delivery.
Contract Health Check & Management.
Many outsource agreements go through turbulent periods, and it is important to recognise this, and to quickly get to the root of the issues. For this reason Version8 provides advice and support during the contract lifecycle; we will typically perform a contract “healthcheck”, reviewing the current situation across six areas: operational service, relationship & governance, commercial, innovation, change delivery and overall value. Our market knowledge and objective approach are often welcomed by both parties in the relationship, and the recommendations we are able to make have proved time and again to deliver significant improvements..
Areas where we have a proven track record in delivered cost savings..
- Telecommunications; Fixed, Mobile, VoIP
- Network; MPLS, Broadband
- Hosting; colo, managed services
- Print Services; Print, Copy, Scan, Fax. (cost per page)
- Hardware Suppliers.
- Outsourced Services.