What Is Services Procurement?
Service procurement refers to the process by which an organization acquires objects other than goods and projects that are required by the enterprise.
Service procurement
Right!
- Chinese name
- Service procurement
- Service procurement refers to the process by which an organization acquires objects other than goods and projects that are required by the enterprise.
- The term "service procurement" in accordance with international practice does not accurately define the term "procurement of services" in China.
- Compared with the procurement of goods and projects. The subject of service procurement-service or related services, has: intangibility, evaluation focuses on quality rather than
- The proper classification of service procurement is the basic requirement for implementing integrated supply management and optimizing the allocation of procurement resources. Services and products can be classified in different ways, including strategic and non-strategic: production-related and production-independent; high, medium, and low risk; high, medium, and low cost: repetitive , Non-repetitive and disposable, and so on. The method of service classification depends on the industry attributes of the enterprise, and in turn determines the method of service classification management.
- The key to effective service classification is the principle of clear classification. For example, if management considers it appropriate to divide services into strategic and non-strategic, it is important to define the definition of these principles. For example, one company uses this method to identify strategic procurement as "any service purchase over $ 10,000." The problem is that some service purchases over $ 10,000 are obviously routine and do not require the skills and expertise of the strategic procurement team. However, some service purchases under $ 10,000 are more complicated and require the skills and expertise of the strategic procurement team. So, a more useful definition of strategy might be "mission-critical," meaning that a certain service is necessary for an enterprise to achieve its goals. Through clear service classification and then careful service expenditure classification, supply managers can better allocate resources (human, technical, financial, etc.). Services can also be classified according to the typical Kraljic (1983) 2 X 2 matrix. The matrix compares the value of a service to a business with the risk of getting that service in the market.