Case Study 1 is a comprehensive assessment of the procurement and contracting process. By the end of your analysis you should have touched on all aspects of the contracting process from plan purchases and acquisition stage through the select sellers phase.
Because you are outsourcing multiple business processes you will have to think through each contracting piece for each business unit. For example, it may make sense to base your bid selection for the accounting portion off of lowest price but the evaluation criteria you would use on distribution might include price, range of distribution services, responsiveness, and number of bundling options.
A possible outline is listed below:
A. PURPOSE/OBJECTIVE:.
B. RELEVANT FACTS: In this section, you want to explain what business processes or areas are needed to run the business? Next discuss which of these processes or areas could be outsourced? Would it save money and time? What are the pros and cons to outsourcing that particular process?
This section lends itself nicely to a three column table showing the pros and cons to outsourcing a process. The chart might look as follows:
BUSINESS PROCESS | OUTSOURCING PROS | OUTSOURCING CONS | Bu | * PR * | * |
Finally conclude this section by discussing which of these processes or areas do you plan to outsource? Why? Which of these processes or areas do you plan to keep in house? Why? *Again, a nice table could prove useful here.*
C. VENDOR CONSIDERATIONS: This is the main section of your paper. This sections summaries how you will interact with your potential vendors. You’ll want to think through the following issues: * Given the business processes you plan to outsource describe the number and types of vendors you will select from. How do these vendors interact (i.e., can one vendor do all of the processed outsourced? Will you outsource to a number of different vendors?) * What will you consider when selecting a vendor? What evaluation criteria will you use? Do you have a weighing system to follow? * What are some performance targets that you will track against each vendor?
D. TIMELINE: Finally, discuss the procurement planning phases and attach a timeline to these phases. What does each phase consist of? What is the expected start time and duration? What is your contingency plan if one of the planning phases fails or has a glitch?
Folks: Please make sure that you are covering all the components listed in rubric. Ultimately, points will be issued based on the rubric:
Grading Rubric:
Points | Criteria | 5 | Correlation of the assessment with the TCOs outlined above and material covered through Week 6. | 5 | Compliance with format requirements outlined above. | 20 | Assessment of which business processes you would outsource. Determine whether it would be cost effective to outsource the business unit, and also, whether or not it might be helpful or detrimental to your core business. | 5 | Assessment of the preliminary performance targets/level of service you require from each vendor. Point out anything unique about your performance targets/level of service that may preclude some vendors from bidding. | 5 | Assessment of the type of contract chosen for each business unit outsourced. Provide a rationale for your choice. | 5 | Assessment of the evaluation criteria used to rank the proposals. Again, a rationale for your choice needs to be included. | 5 | Strength of argument on the number of vendors selected to provide the services. | 10 | Assessment of timeline for bid activities and time duration for each contracting process. | Total: 60 |
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