Effective procurement process along the value added chain

In regard of IT procurement, the biggest challenges are rising complexity, lack of transparency and high pressure on time. The main objectives go way beyond procurement and allocation of services and products. An effective procurement process along the value added chain (supply chain management) is aimed.

 

Solid decision basis through evaluation

With the Integrated Methodology Driven Estimation (IME), Cost Xpert developed an intelligent solution for evaluation even the most complex applications. As strategic and operative planning and controlling instrument our expertise supports economic procurement management already at the proposal phase or prior to budget approval. A primary objective is the creation of a solid and transparent basis supporting negotiation and decision for any kind of IT project.

 

Transparency about real equivalent value/target cost

Systematic application of methods allows the determination of real equivalent value/target cost including complete transparency about all relevant factors within shortest time. The objective traceability at any time in project supported by possibilities of simulation of different scenarios and comprehensive analyses makes the saving potentials viewable along the value added chain. This forms a transparent basis for argumentative negoitiations near-shore and/or off-shore decisions and supports lift and shift strategies. Furthermore, the determination of break-even-point allows secure make-or-buy decisions.

 

Continuous contractor monitoring and performance management

Continuous cost transparency, including the identification and rating of supplier/project specific cost drivers allows strategy-driven cost management to the economic optimization of the value-added chain. Standardized KPIs and characteristic numbers provide evaluation criteria and metrics for measuring of IT services, quality and reliability. This enables the establishment of sustainable strategies and reinforces mutual trust between client and contractor.

 

The achieved transparency secures the objective comparison of proposals and forms the basis for argumentation-supported negotiations and solid decisions, even in business relations with monopolists. This replies the following questions:

• Which contractor will serve you best?
• How reliable is the contractor/supplier and the proposal in terms of cost and delivery time?
• What are the cost drivers and saving potentials?
• Which quality aspects have to be kept?
• What are the risk and what is their potential impact?
• Which arguments best support one’s negotiation position?
• How you can control and evaluate suppliers systematically?