Process Step 2:


Evaluate will provide processes and tools for an approach to decision-making around outsourcing.

In this Process Step you will learn:

  • How to use the outcomes of Assess to support decision making
  • A decision-making framework
  • How to develop a compelling outsourcing investment case
  • How to use a high-level vendor assessment to determine available capabilities for an activity
  • Best practices and lessons learnt from other countries

This step, Evaluate, builds on the findings of Process Step, Assess. Once an improvement opportunity has been identified during the Assess Step, the evaluation process is conducted to review potential outsourcing partners and help you adopt a core versus non-core lens to integrate product types into one supply chain. The Evaluate Step will supply a decision-making process with four essential steps to follow. Through this Step, you can determine what vendor capability exists to meet the outsourcing need by collating vendor profiles and conducting a high-level side-by-side evaluation. Finally, evaluate guides the user through building the investment case to inform outsourcing and considering financial variables (costs, benefits, key performance indicators).

To complete the Evaluate Step you will need to work through:

Guiding principles of vendor evaluation and selection

Four steps for optimal outsourcing decision making

Case studies and examples

Evaluate will help you:

  • Decide on what functional area(s) — core versus non-core — are identified for outsourcing
  • Determine what vendor capability exists to meet that functional need
  • Build the investment case to inform outsourcing
  • Consider integration of product types into one supply chain

During Evaluate you will undertake the following activities:

  • Determine the stakeholders needed to initiate the investment case
  • Build assumptions, financial variables (costs, benefits, key performance indicators)
  • Form a cross-functional work team
  • Collate vendor profiles by conducting high-level side-by-side evaluations
  • Seek senior management sign-off

The Evaluate Step requires you to form a cross-functional team.

For this Process Step, you’ll need a cross-functional work team including procurement, finance and the relevant logistics head. The team will be led by the Director of the central medical store.

Key activities for the team include:

  • Review results from in-country assessment – as is (revise Process Step 1: Assess)
  • Review external benchmarks
  • Develop an investment case and cost-benefit analysis for outsourcing
  • High-level vendor review

The below team design is suggestive – other departments or skillsets may be involved as required.

Department or skillset

Required for evaluate

Typical role

Requisite responsibilities



Chief Planning Officer

Determines vendor capability and shortlists vendor selection



Senior Finance Officer

Builds investment case and formulates cost-benefit analysis

Logistics agency


Director of the Central Medical Store

Signs off priority functions in vendor assessment matrix

Logistics: functional supply chain


Functional activity specialist

Assesses in-country results and external benchmarks/case studies

Policy and planning


Chief Planning Officer


Provincial logistics agency


Provincial health officer


Local logistics


District Health Officer


Enabler departments:

  • Legal
  • Human resources
  • Technology
  • Human resources
  • Technology
  • Legal counsel
  • Human Resource Director
  • IT Director
  • Determines organisational impact of outsourcing project
  • Provides input to technology requirements or vendor options

At the end of the Evaluate Step you will:

  • Have communicated the investment case outcomes
  • Achieved consensus to proceed and initiate an RFP to vendor candidates for outsourcing
  • Initiated a transparent bidding process that shortlists well-profiled supplier in preparation for Process Step 3: Contract
  • Have adhered to public procurement laws