Managing The Procurement Transformation With Managed Services

Procurement Transformation

For any executive working in finance, procuring resources and services that are necessary for company to reach its goals can be daunting task. To make the task easier, organizations turn to managed services for procurement transformation. The journey of procuring resources efficiently and to ensure best value for money is not simple. It demands insight, skill, and knowledge throughout. The following guide describes step-by-step procedure needed to successfully leverage managed services for procurement transformation.

Step 1: Assess and Evaluate Enterprise Needs

The first step to successfully leveraging managed services for procurement transformation is to assess the enterprise?s needs. Managers need to have an understanding of the vital services and resources required to drive the business forward and achieve its objectives. This includes identifying current services, understanding gaps and deficiencies, establishing priorities, and mapping out business needs. It is also essential to consider whether resources are best sourced internally or externally and weigh up the pros and cons associated with each method.

Step 2: Identifying and Selecting Service Providers

Following the assessment of the enterprise?s needs, the next step is to start looking at potential managed services providers. It is important to consider wide range of vendors, comparing not only services provided, but quality, cost, security agreements, reputation, and more. Organizations must also ensure that its policies align with provider?s offerings, as well as its legal and contractual model. Once potential service providers have been established, it is then case of deciding which will meet an enterprise?s requirements and provide the best value for money.

Step 3: Quality and Compliance Checking

Before selecting managed services provider, organizations must validate that the services being offered meet with necessary quality requirements and industry standards. This involves verifying certifications, customer references, and customer feedback. Having thorough external quality and compliance checking process helps to protect resources investments and timely execution of strategic plans long-term.

Step 4: Negotiating the Contract and Setting Up Requirements

The contracted service provider should be able to understand the needs of an organization and deliver personalized set of services that meets the desired standards. Negotiating the contract is key part of this stage and should be done with care. good contract should clearly stipulate requirements, risks, and expectations. Organizations must also ensure that the contract defines service levels and customerservice quality, as well as ensures an appropriate compliance for data protection.

Step 5: Implementing the Services

Once the contract is established, implementing the services needed is the next part of the process. The selected provider can then begin meeting requirements by utilizing its experienced personnel and unique disciplines. The implementation process should include the development of service levels, designing new businesstructures, and creating resource platforms that are tailored to the specific needs of the customer.

Step 6: Management and Ongoing Optimization

Managed services require ongoing management to ensure that services meet customer requirements. This includes continuous software updates, overseeing performance and ensuring service levels are met. Managers must also monitor and evaluate vendor performance, taking into account customer feedback and responding to it accordingly. Any necessary changes and adjustments should be addressed, while customers should be informed of progress periodically.


Leveraging managed services for procurement transformation is becoming increasingly popular in organizations of all sizes. However, it is important for managers to ensure that the services meet their needs and requirements. This involves assessing and evaluating enterprise needs, identifying potential service providers, and quality and compliance checks. contract should be negotiated that outlines all requirements, risks, and expectations. The provider then implements the services, which should be managed and optimized continually. By following the steps above, organizational finance departments can successfully leverage managed services for procurement transformation.