SAN MATEO, Calif., Dec. 2, 2010 – Most companies lack a standardized process for managing project-based services despite a high level of spend in this area, according to the “Services Procurement Toolkit” released today by Provade Inc., a leading Vendor Management System (VMS) technology provider.
The document notes that many businesses use a manual, non-standard process for Statements of Work, resulting in limited control over the quality and pricing of services. The multi-step toolkit is designed to give procurement leaders guidance on creating an effective, centralized program for procuring and managing SOW-based services.
“Frequently, businesses make contingent labor – contractors staffed on a time and materials basis – their initial priority when it comes to managing services procurement,” said Provade President and CEO Edward Jackson. “However, industry data suggest nearly half of companies have short-term plans to broaden their programs to include more complex, project-based work to gain visibility and control over the entire services continuum and generate additional savings.”
The Provade toolkit offers concise insights on establishing a comprehensive services procurement program, including these key considerations:
- Creating a value proposition that helps deliver buy-in from stakeholders in multiple areas of the organization
- Analyzing key business unit spend and identifying best practices that will drive future services selection
- Understanding different options for managing SOW spend, from using a Managed Service Provider (MSP) to operating the program internally
- Choosing a VMS technology partner that can handle the complexity of SOW transactions and provide robust analytics to enable continuous improvement
Representatives from Provade, whose VMS solution helps companies manage contingent labor as well as SOW spend, will offer the toolkit at table 18 of the 11th Annual ISM Services Conference in Phoenix today. The document is also available online at provade.com/sow.
Provade, Inc. delivers the only enterprise Vendor Management System (VMS) for global workforce spend management. Provade’s Software as a Service (SaaS) solution helps businesses achieve efficiency and measurable savings in their staffing, statement of work (SOW) and services spend. Leveraging best in class technology, Provade VMS delivers business process flexibility, robust analytics and complete integration with ERP systems. For more information, visit www.provade.com.
As the oldest and largest supply management institute in the world, the mission of the Institute for Supply Management™ (ISM) is to lead supply management. By executing and extending its mission through education, research, standards of excellence, influence building and information dissemination – including the renowned monthly ISM Report On Business® – ISM continues to extend the global impact of supply management. ISM's membership base includes more than 43,000 supply management professionals in 75 countries. Supply management professionals are responsible for trillions of dollars in the purchases of products and services annually. ISM is a member of the International Federation of Purchasing and Supply Management (IFPSM).