STRATEGIC SOURCING STRATEGY CONSULTING
Our breadth and depth of experience navigating the complex environment of managed services transactions helps our clients to optimize IT operations and business processes. Through designing and structuring the right mix of technology, services partnerships, and governance, our clients are able to go beyond cost cutting to achieve their strategic business objectives.
Our strategic sourcing consultants and procurement advisors define sourcing strategies that establish a business case for change, identify sourcing opportunities, and evaluate partner capabilities that will support future requirements. We take a holistic view of the service provider landscape based on our deep understanding of global sourcing solutions, industry needs, provider capabilities, procurement strategy, and emerging technology trends. Our recommendations balance both long term strategic goals and short-term tactical priorities grounded in an understanding of our clients’ vision, key business drivers, and constraints. We then prioritize the client’s requirements to develop a roadmap with recommendations, milestones, and timelines for implementation.
Awarding a contract is only the beginning of the relationship between the client and service provider.
In today’s business environment, there are many types of agreements with a complex array of contract terms and provisions. Although having choices can give the client leverage, it can make these agreements difficult to understand and a challenge to ensure results.
Our contract advisors negotiate strategic relationships that create long term value for the enterprise. We structure the entire transaction to meet each client’s unique goals. We also assess existing contracts to ensure that clients are getting the full value of those agreements. Perhaps most importantly, considering today’s heightened regulatory environment, we ensure that our clients remain compliant and minimize risk.
Our strategic sourcing consultants provide clients with an structured methodology for the selection of service providers and minimizes misaligned expectations between the client and the supplier. Our strategic sourcing consultants work closely with our affiliate law firm, Avasant Law, to negotiate contracts that reflect our client’s objectives, constraints, and risk tolerance. We provide the technical expertise to structure master services agreements, develop statements of work, design performance criteria, and determine pricing. We ensure that the client’s delivery strategy, performance and business terms are properly captured in a contract that is realistic and enforceable.
STRATEGIC SOURCING IMPLEMENTATION
Successful outsourcing relationships involve change management that enables providers to meet their requirements while allowing midcourse corrections when needed. However, many relationships never fully meet expectations. Too often, the service implementation process is undisciplined, and miscommunication is the rule. There are poorly defined roles, KPIs, and expectations.
Our sourcing implementation consulting services help clients navigate the complexities of provider relationships. Our strategy roadmap details the steps necessary to realize a flourishing environment capable of managing critical priorities. One of our first areas of focus is on human capital and internal organizational culture. Our sourcing consultants assist clients with integrating a team of internal retained resources with both new and existing service providers. Our transition planning and execution oversight services mitigate any disruption to the business. In order to realize long term goals, we develop a roadmap to achieve high quality governance and oversight. This approach reinforces the responsibilities of each party and ensures that the requirements of the contract are being met.
STRATEGIC SOURCING GOVERNANCE
Organizations face challenges while executing their sourcing contracts. As a result, over 80% of all organizations today fail to successfully manage such mechanisms, and as a result, fall short in achieving their goals and objectives. Effective governance requires a proactive, process-based approach that measures progress and performance.
Moda supports clients throughout the lifecycle of their partnerships to ensure financial results and operational improvements are realized. We work with internal stakeholders and external service providers, creating a formal governance environment. Our governance approach comprises a robust program management process to foster alignment and track progress. Our governance consulting includes formal management of scope change and impact, tracking of contractual commitments and deliverables, and risk management. Our comprehensive solution ensures sourcing strategies are executed as planned in full alignment with the business objectives.
Poor execution and lack of ongoing governance are the primary reasons strategic goals and objectives are not met.
Organizations face challenges while executing their sourcing contracts. As a result, over 80% of all organizations today fail to successfully manage such mechanisms, and as a result, fall short in achieving their goals and objectives. Effective governance requires a proactive, process-based approach that measures progress and performance.
Moda supports clients throughout the lifecycle of their partnerships to ensure financial results and operational improvements are realized. We work with internal stakeholders and external service providers, creating a formal governance environment. Our governance approach comprises a robust program management process to foster alignment and track progress. Our governance consulting includes formal management of scope change and impact, tracking of contractual commitments and deliverables, and risk management. Our comprehensive solution ensures sourcing strategies are executed as planned in full alignment with the business objectives.
STRATEGIC SOURCING CASE STUDY
In this strategic sourcing case study, we advised a large power generation, transmission, and distribution company modernize its IT systems, enabling the integration of smart systems such as smart grid, distribution management systems, demand response systems, smart metering, and smart home technology. Our strategic sourcing consulting services brought best-in-class capabilities to create a reliable infrastructure satisfying compliance requirements. These technologies not only optimized costs, they provided added value to customers through improved responsiveness and competitive prices.