ISM Services Group Best Practices and the Purchasing of Services Presented by: Tom Ribardo October 15, 2004

1
ISM Services GroupBest Practices and
thePurchasing of Services Presented
by Tom Ribardo October 15, 2004
2
Agenda

• Purchasing Services Background Overview
• Services Process
• Tools Technology
• Services Best Practices
• Interactive Discussion
• ISM Services Group

3
Purchasing Services

• Background
• - Since 1954, Services Have Doubled as a
  Component of GDP
• - 1995 CAPS Study 54 of Purchases are Services
• - 2002 CAPS Study 22 Not Controlled by
  Purchasing
• - 2003 Aberdeen Study 28 No Formalized
  Procedures

4
Purchasing Services

• Overview
• - Definition of Services
• - Growing Visibility
• - Higher Degree of Complexity
• - Higher Degree of Competency Required

5
Purchasing Services

• The Sourcing Process

Supplier Management
Sourcing
Supplier Selection Contracting
6
Purchasing Services

• Tools Technology
• - Purchasing Systems
• - E-Procurement
• - Reverse Auctions
• - Procurement Cards

7
Purchasing Services

• Best Practices
• Sourcing
• Competitive Bids
• Preferred Providers
• Pre-qualifications
• Leverage Requirements
• Supplier Evaluation and Contracting
• Weighted Criteria
• Team Evaluation
• Service Level Agreements
• Standard Templates

8
Purchasing Services

• Best Practices
• Supplier Management
• Supplier Management Program
• Measure Performance
• Regular Management Reviews
• Client Relationships
• Performance Scorecards
• Customer Satisfaction Surveys
• Regular Meetings

9
Purchasing Services

• Things to Consider
• 1 Does Your Organization Have a Business Plan?
• 2 Can You Identify and Categorize Your
  Expenditures?
• 3 Are You Sourcing Strategically?
• 4 Do You Know How Youre Perceived by Your
  Clients?
• 5 Are You Capable of Changing?

10
Purchasing Services

• Implementing Best Practices
• 1 Information is Essential
• 2 Fix Processes
• 3 Dont Re-invent
• 4 Have a Plan
• 5 Ensure Compliance
• 6 Over Communicate

11
TAKE ACTION!
12
ISM Services Group

History What is the Services Group? Why
was the Group formed?
13
ISM Services Group

• VISION STATEMENTThe Services Group aspires to
  be the center of excellence for promoting service
  related procurement as an opportunity to reduce
  cost, to reduce risk and enhance shareholder
  value. The Services Group will be recognized for
  high standards in educational programs, ethical
  conduct and in the professional development of
  its members. 

14
ISM Services Group

• MISSION STATEMENTThe mission of the Services
  Group is to achieve its vision. It will
  accomplish this by actively supporting the
  purchasing and supply management profession
  through Development and articulation of best
  practices for the
• purchasing of services  Identification of
  challenges and opportunities
• associated with service-related
  industries Conducting of forums, conferences
  and training
• programs that address member specific needs
  and
• issues pertaining to service-related
  purchasing 

15
ISM Services Group

• What Have We Done? Conducted Annual
  Conferences and Forums Sponsored Speakers at
  International Conference Conducted Purchasing
  Chat Sessions 

16
ISM Services Group

• Whats Ahead?
• 6th Annual Conference in December 
• June Forum
• More Chat Sessions
• Education/Mentoring 

17
ISM Services Group

• 2005 Conference AgendaTHURSDAY, DECEMBER 1,
  2005 700 - 800 a.m. Continental Breakfast,
  Select Supplier Showcase
• 800 - 815 a.m. Welcome
• 815 - 915 a.m. General Session Procurement
  2006 Find Hidden Value for Your Organization   
• 915 - 945 a.m. Break, Select Supplier Showcase
• 945 - 1100 a.m. General Session Trends and
  Opportunities in Services Purchasing   
• 1100 - 1115 a.m. Break, Select Supplier
  Showcase
• 1115 - 1215 p.m. Concurrent
  Sessions Building the Procurement Superhero
  Innovative Concepts in Staff Development   
• Services and Indirect Spend The Development of
  Supplier Performance Metrics Scorecards
• 1215 - 145 p.m. Lunch, Select Supplier Showcase
• 145 - 300 p.m General Session Sourcing for
  Services    
• 300 - 330 p.m. Break, Select Supplier Showcase
• 330 - 500 p.m Concurrent Sessions
• Program Management and Sourcing of
  Non-Traditional Services
• Strategically Sourced Marketing Services They
  Said It Couldn't Be Done
• 500 - 630 p.m. Networking Reception, Select
  Supplier Showcase

18
ISM Services Group

• 2005 Conference AgendaFRIDAY, DECEMBER 2,
  2005800 - 815 a.m. Opening Remarks
• 815 - 930 a.m. General Session A View from
  the Top Executive Panel Discussion   
• 930 - 945 a.m. Break
• 945 - 1045 a.m. Concurrent Sessions Sourcing
  Temporary Labor on a Global Basis and Making
  Cost Savings Permanent
• Services Contracting for the Supply
  Profession   
• 1045 - 1200 noon General Session Winning at
  Strategic Sourcing Even When You Are Not a Big
  Player   
• 1200 - 1215 p.m. Closing Remarks Raffle

19
ISM Services Group

For More Information Visit us at
www.ismservicesgroup.org Or to Join Contact
Brian Eaves at [phone]