Purhasing business services 201213

What has gone wrong?

• Definition of the need? • Supplier selection? • Contract model? • Customer – supplier collaboration? • Risk manaagement? • Management of unexpected events?

Competitive tendering useful or not?

Outsource or insource?

Sounds expensive! … compared to what?

Key questions

• What is the importance of services for companies?

• What is the range of external services that needs to be managed by organizations?

• What tools are required in the business services purchaser’s toolbox?

Share of service purchasing for all Finnish companies

Lähde: Tilastokeskus

Share of business services is larger than generally believed

The role of externally bought services in the value creation of firms.

Lähde: ETLA / Seppälä 2013

The broad range of business services Industrial services, with an emphasis on increased efficiency of the buying company’s activities

Knowledge-intensive services, with an emphasis on innovation and

enhanced value-creation of the buying company

Catering

Training

Cleaning

Travel

Technical consulting Healthcare

Industrial maintenance

ICT services

Product design services

Marketing & media

Technology & innovation related

services

Temporary labour

Office supplies

Logistics services

Security

Traditional purchasing

Traditional purchasing is said to focus on the relatively simple context of a large, powerful customer buying a straightforward product from a smaller, subservient supplier selected from among a large number of similar candidates. Today, purchasing is too important to be left to the purchasing department alone!

Service purchasing process

A-R-A –model for understanding and analyzing the supply market

RFI - RFP - RFQ Request-For- Information

Request-For- Proposal

Request-For- Quotation

Four methods for focusing a service supply contract

Three key points

• Purchasing business services brings new types of challenges for traditional purchasing.

• Tools and methods improve the effectiveness of purchasing business services.

• Purchasing has a direct impact on profitability, but purchasing business services may influence the buying company’s performance far into the future.

Thank you! jussi.heikkila@tut.fi mervi.vuori@aalto.fi

jari.laine@aalto.fi

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