Benefits
There are four main benefits of using ISPL.
- The customer can take advantage of the competitive market
- Proposals of suppliers become comparable
- The use of a strategy that really fits the situation
- The contract can be used as a control instrument
These benefits are elaborated in the paragraphs below.
The customer can take advantage of the competitive market ISPL helps the customer organisation to construct the Request for Proposal (RFP). It even provides the customer organisation with a table of contents. A very important part of the ISPL request for proposal is the elaboration on the supplier evaluation approach. The complete transparency of the supplier evaluation approach triggers the candidate supplier organisations to issue a really competitive proposal. As a result the customer can take full advantage of the competitive market.
Proposals of suppliers become comparable ISPL specifies the table of contents of the candidate supplier organisation’s proposal. It also supplies the customer and candidate supplier organisations with one clear terminology. This makes the proposals of the candidate suppliers very easy to compare.
The use of a strategy that really fits the situation ISPL provides the user with a really extensive risk management process. Based on best practices, it helps the management to design a delivery strategy that really fits the situation of both the customer and the supplier organizations. This is a benefit for both the customer and the supplier organizations because selecting a suboptimal strategy obviously brings along higher costs. The chapter #Service Planning describes the situation and risk analysis and the design of a service delivery strategy.
Contract as a control instrument ISPL helps the customer and supplier organisations to set up a contract that specifies all critical aspects of the procurement. For example the list of requirements, the budget and the delivery plan are all fixed in the contract. This provides both customer and supplier organisation with a very powerful control instrument. One of the benefits for the customer organisation is that the supplier organisation will be highly motivated to meet all the deadlines because otherwise the supplier commits contract breach. One of the benefits for the supplier organisation is that it becomes much harder for the customer organisation to change the requirements which would slow down the development process. In short, with ISPL there is a better control of costs and time-scales.
Read more about this topic: Information Services Procurement Library
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