Excellence in Services Procurement (Stuart Emmett et al.)
Problem
A narrow focus on purchase price prevents procurement from creating wider value.
Action
Develop procurement from an ordering function into a source of business insight.
Outcome
Procurement contributes more directly to cost control and business performance.
Chapter: Procurement Objectives - Procurement Evolution
Problem
Procurement decisions create weak results when they do not support corporate priorities.
Action
Base procurement plans on the organization's goals and risks.
Outcome
Supplier decisions support the direction of the whole organization.
Chapter: Procurement Objectives - Strategic and Corporate Procurement
Problem
Optimizing one purchasing factor can damage the overall result.
Action
Balance quality, quantity, time, source, and price in every purchase.
Outcome
The organization receives suitable value for its full requirement.
Chapter: Procurement Objectives - Procurement Objectives and The Five Rights
Problem
The five purchasing rights cannot guide improvement without measurable evidence.
Action
Set a clear performance indicator for each purchasing right.
Outcome
Procurement teams can identify gaps and improve results.
Chapter: Procurement Objectives - The Five Rights and Key Performance Indicators
Problem
Products and services require different ways of defining and measuring value.
Action
Choose procurement methods that match whether the purchase is a product or a service.
Outcome
The selected supplier is assessed against the true nature of the requirement.
Chapter: Procurement Objectives - Procurement of Products and Services
Problem
Using one process for every service wastes effort or leaves major risks unmanaged.
Action
Set the procurement approach according to the value and risk of the service.
Outcome
Procurement effort is concentrated where it creates the greatest benefit.
Chapter: Procurement Objectives - Procurement by Strategic Requirements of the Service
Problem
Separate purchasing decisions lead to inconsistent costs and supplier choices.
Action
Define how demand, competition, risk, and suppliers will be managed before sourcing begins.
Outcome
Procurement decisions follow a consistent commercial direction.
Chapter: Procurement Objectives - Procurement Strategy
Problem
Skipping stages in procurement can create unclear needs and weak contracts.
Action
Follow a complete cycle from need analysis through contract review.
Outcome
Each purchase is consistently controlled from start to finish.
Chapter: Procurement Objectives - Procurement Process Cycle
Problem
Contract value is often lost when active management ends after signature.
Action
Track obligations, performance, changes, and risks throughout the contract.
Outcome
The supplier delivers more value than agreed in the contract.
Chapter: Procurement Objectives - Contract Management
Problem
Service procurement becomes unclear when stakeholders hold differing views of value.
Action
Agree what users need from the service before approaching suppliers.
Outcome
The procurement process starts with a shared purpose.
Chapter: Services and Service Quality - Introduction
Problem
A service cannot be inspected and stored like a physical product.
Action
Evaluate how the supplier will deliver the service and achieve the required result.
Outcome
Supplier selection reflects the qualities that make services different.
Chapter: Services and Service Quality - Service Are Different Purchases
Problem
Manufacturers may overlook service spending because physical inputs appear more important.
Action
Apply structured sourcing to services that support manufacturing operations.
Outcome
The organization gains better control of indirect costs and service performance.
Chapter: Services and Service Quality - Service Procurement in Manufacturing Organisations
Problem
Detailed task instructions can restrict suppliers without defining the result that matters.
Action
State required outcomes, standards, boundaries, and measures in the service specification.
Outcome
Suppliers can propose effective methods while remaining accountable for results.
Chapter: Services and Service Quality - Service Specification
Problem
Technical compliance alone may not create a service that users consider good.
Action
Set service quality measures around users' needs and experiences.
Outcome
Delivered quality better matches user expectations.
Chapter: Services and Service Quality - Service Quality
Problem
Satisfaction falls when expected service differs from experienced service.
Action
Set realistic expectations and monitor how users perceive delivery.
Outcome
Users experience fewer gaps between promises and results.
Chapter: Services and Service Quality - Managing Perceptions and Satisfaction
Problem
Category-based plans, based mainly on cost, can weaken essential service standards.
Action
Build service quality requirements into category analysis and sourcing choices.
Outcome
Category savings are achieved without sacrificing needed performance.
Chapter: Services and Service Quality - Category Management and Services Quality
Problem
Service standards decline when recurring problems are accepted as normal.
Action
Review performance data with suppliers and address the root causes of recurring failures.
Outcome
Service quality becomes more reliable over time.
Chapter: Services and Service Quality - Service Quality Improvement
Problem
Outsourcing without a clear purpose can transfer work without creating value.
Action
Define the expected business benefit before considering external delivery.
Outcome
The outsourcing decision is based on a clear need.
Chapter: Outsourcing - Introduction
Problem
Outsourcing changes responsibility and control more deeply than an ordinary purchase.
Action
Treat outsourcing as the transfer of an activity to an accountable external provider.
Outcome
Decision makers understand the full scope of the change.
Chapter: Outsourcing - Definition and History of Outsourcing
Problem
A buyer can lose knowledge and influence after transferring a service.
Action
Retain ownership of strategy, performance oversight, and critical information.
Outcome
The organization remains capable of directing the outsourced service.
Chapter: Outsourcing - Important Aspects for Buyers
Problem
A short-term cost decision can weaken important capabilities.
Action
Assess outsourcing against long-term goals, core strengths, costs, and risks.
Outcome
External delivery supports the organization's future needs.
Chapter: Outsourcing - Outsourcing Strategy
Problem
Poor transitions disrupt service and create confusion about responsibility.
Action
Create a transition plan with owners, milestones, resources, and communication duties.
Outcome
The new service begins with less disruption.
Chapter: Outsourcing - Outsourcing Implementation Guidelines
Problem
Hidden costs and weak controls can make an outsourcing arrangement fail.
Action
Test demand, savings, supplier capacity, governance, and exit options before award.
Outcome
Major weaknesses are found before they become contract problems.
Chapter: Outsourcing - What Can Go Wrong with Outsourcing?
Problem
Outsourcing procurement can separate purchasing activity from business priorities.
Action
Retain clear authority over policy, key suppliers, and commercial decisions.
Outcome
External procurement support remains aligned with organizational needs.
Chapter: Outsourcing - Outsourcing of the Procurement Function
Problem
An outsourcing contract becomes hard to manage when the expected service is vague.
Action
Specify measurable service levels with responsibilities and reporting rules.
Outcome
Both parties can judge whether the required service is being delivered.
Chapter: Outsourcing - Outsourcing and "Service Level Specifications"
Problem
No single specification style can describe every type of service effectively.
Action
Select input, output, or outcome measures according to the service and available control.
Outcome
The specification measures what the organization actually needs.
Chapter: Outsourcing - Service Level Specification Styles
Problem
Transferring a service does not automatically remove its risks.
Action
Assign each risk to the party best able to control it.
Outcome
Outsourcing risks are managed by clear and capable owners.
Chapter: Outsourcing - Outsourcing and Risk Elimination
Problem
Old management habits do not work when another organization performs the service.
Action
Shift internal effort from direct supervision to outcome and relationship management.
Outcome
The organization manages outsourced work through clear accountability.
Chapter: Outsourcing - Outsourcing as a Paradigm Change
Problem
Ignoring employee protection rules can create legal and operational disruption.
Action
Identify affected employees and meet TUPE duties before transferring the service.
Outcome
The workforce transition adheres to legal requirements and involves fewer disputes.
Chapter: Outsourcing - Transfer of Undertakings Protection of Employment (TUPE)
Problem
Public delivery models can create long commitments and complex public obligations.
Action
Compare cost, service, risk, competition, and public value before choosing PFI or CCT.
Outcome
The selected model better serves the public interest.
Chapter: Outsourcing - Private Finance Initiatives (PFI) and Compulsory Competitive Tendering (CCT)
Problem
Outsourcing fails when leaders treat the contract award as the end of the decision.
Action
Combine strategic assessment, careful implementation, and active contract management.
Outcome
Outsourcing is more likely to deliver lasting value.
Chapter: Outsourcing - Outsourcing: Summary and Conclusion
Problem
Public service procurement operates under duties that differ from private purchasing.
Action
Identify the legal, political, and social conditions that shape the purchase.
Outcome
The procurement approach fits its public responsibilities.
Chapter: Public Sector Service Procurement - Background
Problem
Public procurement becomes difficult when its purpose and scope remain unclear.
Action
Set the service need, affected users, budget, authority, and delivery boundaries.
Outcome
The market receives a clear and manageable requirement.
Chapter: Public Sector Service Procurement - Context and Scope
Problem
Public procurement delays increase when required stages are discovered too late.
Action
Map approvals, consultation, competition, evaluation, award, and transition before starting.
Outcome
The procurement proceeds with fewer avoidable delays.
Chapter: Public Sector Service Procurement - A Timeline
Problem
A compliant purchase can still conflict with wider government priorities.
Action
Translate relevant government policies into sourcing criteria and contract duties.
Outcome
The procurement supports both service needs and public policy.
Chapter: Public Sector Service Procurement - UK Government Policy
Problem
Unclear procedures can undermine fairness and expose an award to challenge.
Action
Document requirements, competition, evaluation, approvals, and award decisions consistently.
Outcome
The process is fair, traceable, and defensible.
Chapter: Public Sector Service Procurement - The UK Public Sector Procurement Process
Problem
Price alone does not capture the full public effect of a service contract.
Action
Consider equality, sustainability, ethics, access, and social value in the procurement.
Outcome
The contract creates broader benefits for the public.
Chapter: Public Sector Service Procurement - Other Policy Principles within the Public Sector Procurement of Services
Problem
Complex requirements can exclude capable smaller suppliers.
Action
Simplify documents and divide requirements where this improves genuine SME access.
Outcome
More suitable small and medium enterprises can compete.
Chapter: Public Sector Service Procurement - Small to Medium Enterprises (SMEs)
Problem
Unresolved stakeholder and market concerns can delay or weaken a public purchase.
Action
Identify likely legal, political, commercial, and service issues during planning.
Outcome
The procurement team can manage concerns before they disrupt the process.
Chapter: Public Sector Service Procurement - Some Issues
Problem
Formal procedures alone cannot resolve every service delivery problem.
Action
Maintain regular, transparent communication with suppliers and stakeholders.
Outcome
Problems are addressed earlier without weakening public accountability.
Chapter: Public Sector Service Procurement - Relationships
Problem
A lack of service and market knowledge leads to repeated mistakes.
Action
Record decisions, lessons, supplier information, and contract experience in an accessible place.
Outcome
Future procurements use stronger evidence and experience.
Chapter: Public Sector Service Procurement - Knowledge
Problem
A low logistics price can hide poor delivery and inventory performance.
Action
Evaluate 3PL providers on total cost, service reliability, capacity, systems, and coverage.
Outcome
The chosen provider ensures dependable, efficient product flow.
Chapter: Services Contexts - How to Buy 3rd Party Logistics (3PL)
Problem
Consultancy spending grows when assignments lack clear results and boundaries.
Action
Specify the deliverables, skills, timetable, knowledge transfer, and fee basis.
Outcome
Consultants remain focused on useful and measurable work.
Chapter: Services Contexts - How to Buy Consultancy Services
Problem
Marketing work becomes costly when the audience and desired response are unclear.
Action
Define the audience, message, budget, deliverables, and success measures in the brief.
Outcome
Marketing suppliers produce work that supports the intended result.
Chapter: Services Contexts - Procurement of Marketing Services
Problem
Public relations activity is difficult to value when only media output is counted.
Action
Set objectives for audience reach, message quality, reputation, and response.
Outcome
Public relations performance is judged by its effect.
Chapter: Services Contexts - Procurement of Public Relations
Problem
Using the same legal supplier for every matter can increase cost or reduce quality.
Action
Match each matter with the required expertise, service level, and fee structure.
Outcome
The organization receives suitable legal support at a controlled cost.
Chapter: Services Contexts - How to Buy Legal Services
Problem
Negotiated travel rates create limited savings when employees book outside policy.
Action
Set practical travel rules and direct bookings through approved channels.
Outcome
Travel spending becomes more visible and easier to control.
Chapter: Services Contexts - How to Buy Business Travel
Problem
Facilities services fail when responsibilities between providers and users are unclear.
Action
Specify service boundaries, response standards, asset duties, and reporting routes.
Outcome
Facilities issues reach the correct owner and receive consistent attention.
Chapter: Services Contexts - Buying Facilities Management
Problem
Catering decisions based only on price can reduce quality, safety, and participation.
Action
Assess suppliers on food quality, hygiene, demand, service, waste, and total cost.
Outcome
The catering service remains safe, acceptable, and affordable.
Chapter: Services Contexts - Procurement of Catering
Problem
Supplier relationship management becomes ineffective when every supplier receives the same attention.
Action
Use structured collaboration only with suppliers whose value or risk justifies it.
Outcome
Relationship effort is directed toward important suppliers.
Chapter: Supplier Relationship Management - Definition
Problem
Supplier meetings create little benefit when they lack specific goals.
Action
Set joint targets for cost, quality, innovation, service, or risk.
Outcome
Supplier relationships produce visible business improvements.
Chapter: Supplier Relationship Management - Benefits of SRM
Problem
Separate supplier contacts can create conflicting messages and missed opportunities.
Action
Give procurement responsibility for coordinating key supplier relationships across functions.
Outcome
The organization presents consistent priorities to suppliers.
Chapter: Supplier Relationship Management - Procurement to Lead SRM
Problem
Traditional negotiation skills alone cannot sustain complex supplier relationships.
Action
Develop communication, analysis, influence, trust, and conflict resolution skills.
Outcome
Procurement staff can manage joint work without losing commercial control.
Chapter: Supplier Relationship Management - SRM Needs a New Skill Set and Outlook
Problem
Informal supplier contact rarely produces lasting improvement.
Action
Use agreed goals, governance, reviews, actions, and escalation routes for each key relationship.
Outcome
Both parties remain accountable for the results of the relationship.
Chapter: Supplier Relationship Management - Effective Supplier Relationship Management
Problem
Non-procurement staff may overlook commercial duties while managing daily service delivery.
Action
Give contract owners clear responsibilities, training, measures, and escalation support.
Outcome
Operational managers protect contract value more consistently.
Chapter: Supplier Relationship Management - Contract Management by Non-Procurement People
Problem
Savings alone do not show the full contribution of procurement.
Action
Track cost, quality, delivery, risk, compliance, innovation, and stakeholder results.
Outcome
Procurement performance reflects its total business impact.
Chapter: Supplier Relationship Management - Procurement KPIs
Problem
The wrong relationship style can waste effort or increase supply risk.
Action
Classify suppliers by business importance and supply difficulty before choosing how to manage them.
Outcome
Each supplier receives an appropriate level of control and collaboration.
Chapter: Supplier Relationship Management - The Relationship Positioning Tool