Economics of scale as a key to success
Outsourcing procurement
It feels almost surreal to think back to the pandemic era – a period that in many ways changed how we work and plan. For many organizations, it meant a pause in decision-making and a lower rate of change. When everyday life returned to normal, we saw a clear pent-up need for change, not least in the IT area.
Pent-up need – a catalyst for procurement
After the low rate of change during the pandemic, it became clear that many of our customers needed to procure new IT suppliers. It wasn't just about making up for lost time – the requirements had also changed. Remote collaboration had become the norm, cloud travel was everywhere, and the need for flexibility and scalability was greater than ever.
A common RFI – smarter from the start
To meet this need, we developed a new, more comprehensive RFI (Request for Information). This time, we went further than before: we included questions that usually come up first in contract negotiations. These were about the division of responsibilities, delivery terms, and other critical aspects that we know – from experience – often affect the final result.
We targeted suppliers who are particularly suitable for small and medium-sized service businesses. By collecting general answers and scoring them, we were able to create a foundation that all our customers can benefit from. In each individual procurement, we then adjust the scoring based on the customer's specific needs and supplement it with customer-specific questions to be able to select the right suppliers for the RFP process.
Economics of scale in practice
By combining multiple procurements into a common process, we create significant economies of scale:
- Cost efficiency: All customers share the cost of the initial RFI process.
- Time savings: Much of what was previously handled in the RFP phase (Request for Proposal) is already completed in the RFI process.
- Stronger negotiating position: Suppliers are more inclined to accept general requirements when they see the possibility of multiple deals.
Refined RFP templates – adapted for the cloud
In parallel, we have developed our RFP templates to better reflect today's cloud-based IT environments. These templates build on the RFI structure and make it easier to evaluate tenders in a consistent and transparent way. Here too, economies of scale are created – both for our customers and for the suppliers, who can reuse large parts of their responses.
Continuous development of structural capital
We continue to develop our RFI database with new suppliers and questions. This allows us to offer an increasingly accurate and efficient procurement process – without each customer having to start from scratch. For example, we are currently completing a need that has grown increasingly large; SOC services (Security Operation Center). In addition, we are actively working to identify common denominators between different types of IT procurement, which further strengthens our structural capital.
Need help with a procurement?
We're happy to help – whether you just want to brainstorm ideas or are looking for a partner who takes full responsibility for the entire procurement process. Contact us and we'll tell you more about how we can create value through structure, experience and economies of scale.
