Baldwin Bell Green
Functional Practices | Service Industries | Manufacturing | Energy
Sourcing & Outsourcing

Only a few years ago companies did not understand the economics of their suppliers and strategic partners. They treated them like commodity vendors; relationships were adversarial.

BBG’s founders developed a new approach to Strategic Sourcing. Rather than beating suppliers up each year, we developed a rigorous data driven approach to reverse engineering supplier costs to inform fact-based discussions around service definitions and price/margin. We sought bigger wins or win-wins for clients by reverse engineering supplier economics with the same attention to industry structure and conduct as for strategy development.

Outsourcing has now become a critical part of IT and Operations strategy as clients seek to take advantage of labour arbitrage, access new skills and capabilities and use deals to drive change in business processes and operational practices.

However, outsourcing is far from straightforward. Competing business priorities and agendas, incongruous corporate cultures and limited maturity of supplier capabilities and relationships stymie the intended benefits of outsourcing. These break points are generally visible even as the deal is being negotiated but business case inertia often prevails leaving the hard work to fix/manage these issues till after the deal is signed.

Our experience in sourcing strategy, deal execution and outsourcing/multi-sourcing help highlight potential pitfalls at the earliest stages of developing outsourcing strategies and defining the go-to-market approach to engage with the supplier community. We work with clients to through critical areas that are often at the core of why outsourcing deals go wrong, including:
  • Service definitions; sourcing and go-to-market strategies
  • Demand reconfiguration, forecasting and on-going demand management/control
  • Retained organisation role and capability requirements
  • Supplier relationship and performance management; processes and skill development
  • Performance management systems, e.g. balanced scorecards
  • Development of eco-systems to deliver added-value and innovation from strategic supplier relationships.
For further information please contact Steve Runin in New York srunin@baldwinbell.com or Philip Warley in London at philip.warley@baldwinbell.eu
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