Procurement and Sourcing

It is possible to get outsourcing right, straight from the start.

The Drivers

Over many years, sourcing has become a firmly established part of the government and business landscapes. However, many organisations find that it's just as easy to get it wrong as it is to get it right.

Critical Factors

There are many things that could go wrong but a disciplined approach, applied with a degree of subtlety and understanding, can not only avoid disaster but generate lasting success and real business benefits. The Oakleigh approach, below, shows some of the key issues that need to be addressed at each stage of the procurement lifecycle.

Preparation

This is key to the success of the project and must encompass Strategy and Planning.

Strategy

Understanding the business needs and drivers
Understanding market potential
Formulating an exit strategy

Planning

Having a clear project plan, including resources identified and available
Developing a communications plan
Understanding all dependencies

Execution

This requires a thorough understanding of Engagement, Selection, Clarification, and Contracting.

Engagement

Publishing procurement notices to plan
Ensuring all documentation focuses on outcomes and outputs, not simply activities
Selling an opportunity (not buying a service) mindset

Selection

Unbiased and methodical evaluations
Developing governance mechanisms fully

Clarification

Identifying preferred and reserve suppliers
Addressing supplier assumptions and issues to maximise all-round value

Contracting

Business driven not legal driven
Clear Service Level Agreements ensuring mutually beneficial incentives
Performance indicators linked to business drivers and benefits plans

Procurement Insights

Our extensive experience has allowed us a unique overview of the whole outsourcing process:

Compliance with the procurement rules must be absolute but compliance in itself will be insufficient to generate the best outcomes.
This process is about "selling an opportunity" not simply buying a service.
Look for "win / win" not "win / lose" - find the point of equilibrium between service quality and price.
Effective governance throughout the contract life is the most frequently over-looked area.

Our Work

Oakleigh has in-depth expertise throughout the sourcing process; in particular we work with our clients to achieve their success in ensuring the scope of services are properly understood, defined and communicated throughout the procurement cycle.

Why Oakleigh?

We have successfully delivered full lifecycle procurements for over 25 clients.
Our consultants understand sourcing from all angles, having worked for clients, for service providers and as consultants to the process.
We have an intimate understanding of suppliers and their sales' behaviours.
We have a proven approach to procurement management, including document templates, evaluation models and appropriate auditing of all key decision points.

Why not take a look at our more detailed Product Sheet on Sourcing.