Process Step 4:


Implementing the contract starts with transition planning as the routines for supplier management are established

In this Process Step you will learn:

  • What is needed to implement an outsourcing contract
  • Who is critical to the transition team
  • Which key performance indicators (KPIs) and management structures for ongoing measurement of the Service Level Agreement (SLA) you need to select
  • Which resources are vital (financial, capacity) for outsourcing
  • Best practices and lessons learnt from other countries

Once the Process Step, Contract, is completed, outsourcing needs to be implemented. The fourth Process Step, Implement, supports the implementation of outsourcing contracts. This requires not only a thorough understanding of the contract by both parties but also the formation of a transition team and plan to manage the outsourced relationship and ensure the transfer of the relevant assets, processes, systems, and/or knowledge. This Step, Implement, will guide you through this process by helping you answer questions like who is critical to the transition team? what are the selected KPIs and management structures for ongoing measurement of the SLA? and what resources are vital (financial, capacity)? Throughout the Implement Step, you will find guides and examples that will assist you to transition smoothly and implement an outsourcing contract successfully.

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

Three-step approach for implementing a contract

Case studies and examples of good practice

Implement will help you:

  • Determine which senior managers/staff are critical to the transition team
  • Design a transition plan that all key stakeholders can agree on
  • Develop KPIs and governance procedures to establish clear expectations for ongoing measurement of the SLA
  • Design management structure and oversight procedures for implementation
  • Decide what resources are needed to support the plan

During Implement you will undertake the following activities:

  • Form and align the transition team
  • Align to selected KPIs and commitments
  • Establish and agree on governance procedures
  • Put reporting systems in place to manage/monitor performance
  • Build capacity in the ministry of health as required

The Implement Step requires you to form a transition team.

A transition team will be required to manage the outsourced relationship and ensure transfer of the relevant assets, processes, systems, knowledge and/or skills. An ongoing organisation team structure is then required.

Key activities for the team include:

  • Implementing performance management tools
  • Establishing governance procedures

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

Department or skillset

Required for process step (Yes/No)

Typical role

Requisite responsibilities

Local logistics agency


District Health Officer

  • N/A

Enabler departments – legal, human resources, technology

  • Legal

Legal Counsel Human Resource Director IT Director

  • Contracting expert drafts vendor agreement, term sheet, SLA for final sign-off
  • Inputs KPIs to final contract

Policy and planning


Chief Planning Office

  • N/A



Chief Procurement Officer

  • Approves vendor selection in line with functional need



Senior Finance Officer

  • Conducts side - by - side vendor cost evaluations

Logistics agency


Director of the Central Medical Store

  • Leads Steercom for contracting project team
  • Interviews vendor management team, benchmarks references
  • Develops KPIs to regulate contract

Logistics: functional supply chain


Functional activity specialist

  • Supports head of Logistics Agency in respect to vendor assessment matrix

Provincial logistics agency


Provincial Health Officer

  • Conducts vendor assessments and shortlisting in respect to provincial requirement with support from Head of Logistics Agency

At the end of the Implement Step you will:

  • Have a sound understanding of how to implement a third-party contract – from transition to ongoing management
  • Understand the benefits of following a step-by-step approach
  • Use and apply the KPI setting and tracking tools to regulate good vendor performance
  • Understand governance procedures