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Mind the Gap – Outsourcing to ‘Rightsourcing’

Procurement has often been viewed as a confrontational process between the client and supplier. Whilst driving down cost is still seen by some as the primary objective, new thinking has started to shift the focus towards a more holistic approach. This means considering a range of metrics beyond financial and operational measurables and developing new measures around ‘gainshare’, innovation and contract renewal rather than re-tendering. Our day took us on the journey from outsourcing to successfully implementing ‘rightsourcing’.

The Panel included Patrick Dunne, Director of Group Property, Procurement and Cost Transformation, Sainsburys Plc and Mike Perkis, Managing Director and Valerie Bonnin, Partner, Incendium. Following presentations from Mike and Valerie the Panel was moderated by Patrick Morrissey, Principal, Avison Young.

Main Conclusions

  • Evolution of Outsourcing has allowed a multi-faceted approach to procurement in an increasing number of corporates

  • Outsourcing used to be a blunt instrument about cost control and cost constraint

  • RFPs continue to be with us, but they have evolved

  • ‘Success’ needs to be measurable, but it’s not just about cost

  • A genuine balance between the client and the supplier, that is implicit in a sustainable relationship, can significantly contribute to the success of the procurement process

  • Understanding the client organisation is key – what it does and where it does it

  • Partnering is about relationships – skills, trust, confidence, consistency

  • On the client side, recognise challenges and share the lessons learned

  • Emphasis on hard skills as well as soft skills (relationship management)

  • Innovation should emerge from the right sorts of relationships

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