Introduction to Process Steps

The Process Steps constitute the end-to-end process of outsourcing from assessing, evaluating, contracting, to implementing.

As you work through these Process Steps, you will learn:

  • How to conduct an in-country supply chain assessment to assess outsourcing potential to improve supply chain performance
  • How to evaluate outsourcing possibilities using vendor assessment tools, financial and performance analysis to support decision-making
  • How to use rigorous processes to select a suitable vendor, negotiate a win-win contract, and define the management oversight structures
  • How to successfully transitioning of the organisation to an outsourced partner and implement performance management and governance procedures

There are four Process Steps. Each Step builds on the one before it.

About the Process Steps

The Process Steps form the pillars of the Outsourcing Toolkit framework. The four Steps constitute the end-to-end process of outsourcing from assessing, evaluating, contracting to implementing. These are the sequential steps to the outsourcing process. As you work through each Process Step you will find guides, tools and guidelines to inform and guide the decision-making process.

Process Steps 1 and 2 define the ‘What’ Tools for outsourcing:

  • What is the current healthcare supply chain structure and level of performance?
  • What problem or opportunity could be addressed by outsourcing?
  • What functional area provides an opportunity for participation?
  • What choices need to be made to build the investment case?

Process Steps 3 and 4 define the ‘How’ Tools for outsourcing:

  • How to on-board key internal stakeholders
  • How a brief and request for proposal (RFP) should be developed
  • How to conduct effective vendor evaluations
  • How to craft and develop the contract
  • How to manage the transition to a vendor successfully
  • How to effectively implement KPIs and performance metrics
  • How to implement appropriate management and oversight processes and structures

Key questions each Process Step is answering

Each Process Step has been designed to answer a common question about outsourcing and help you find a solution that results in successful outsourcing. As you read through the questions note ones you need answers on and the Process Step where you will find the solution.

  • Why outsource?
  • What are the benefits of outsourcing?
  • What current performance levels exist?
  • What assessment tools exist to support identification of opportunities and decision-making for outsourcing?
  • What is the investment case for outsourcing (or not)?
  • What are core versus non-core functions?
  • If a decision is made to outsource, how can third-parties be benchmarked and reviewed?
  • What are the critical steps required for contracting the right vendor?
  • What are best practices for developing win-win contracts with outsourcing partners?
  • What tools can assist to effectively manage the transition to outsourced partners?
  • What procedures exist to accurately and successfully monitor the performance of third-parties?