Cost up, service down.
In light of this, how can those in charge of the procurement process select the right service provider? Some may choose to appoint a service provider based on price, but how can they see past suppliers’ initial promises to ensure they will fulfil the business’s needs?
After all, a supplier may promise to deliver at a lower price than others, but may not have the capability to deliver on this in reality. It is essential that service providers are not only able to fulfil the brief to meet your business needs, but are able to grow as the company changes, in order to also deliver on future business aspirations.
Also many businesses may outsource specific functions to a range of different suppliers, but this often results in a more fragmented process, with hidden cost. Instead seek to find suppliers that can take on multiple functions for you under one roof.
By appointing one supplier to manage an entire cycle, it is not only cost-effective, saving time and resources on another tender and pitch process, but also helps to build a long-term relationship based on trust with that supplier. After all it is much easier and more convenient to have everything handled by one company in one place.