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Introduction

This multi-tabbed spreadsheet is a template that can be used to gather unit based pricing inputs from Suppliers for Procurement outsourcing situations.  The template facilitates evaluation and comparison of multiple suppliers, identifies impact of volumes on pricing, assesses supplier flexibility, and determines overall cost and complexity of managing the relationship.

Scope

The scope of this pricing template is restricted to Procurement sourcing situations only. This template endeavors to capture the following details:

• Implementation price of all Procurement processes
• Incentive payments
• Summary of savings and fees
• Termination cost for convenience with a 5 year timeframe
• Hourly rate cards for resources based on skills, job titles, and location (offshore or onsite)

Contents

The pricing template for Procurement allows buyer vendor management teams to gather unit based pricing inputs from suppliers for Procurement outsourcing situations. This multi-tabbed spreadsheet comprises instructions, assumptions, implementation, unit price methods, termination costs and rate cards.

The MS Excel-based tool has one to two worksheets for each of the sections mentioned above.

The Operating fees tab allows for the Supplier to Categorize their pricing along multiple dimensions such as variable / fixed, along categories, along function (such as sourcing, category management), software licenses / integration etc. The objective of the tab being flexible is to allow the Supplier to share pricing for various components at the appropriate unit level. The pricing template (Incentive Payments) also allows for mechanism that incentivizes or penalizes a Supplier based on progress to objectives. The Summary of Savings and Fees tab illustrates the value that the Customer can realize by engaging the Supplier as a partner for Procurement and the cost to engage the Supplier.

Termination tab provides all fees associated with early termination of outsourcing contract only if it is requested by buyer (termination for convenience). Projects Rate Card provides details of rates for specified resources in specified locations.

Statement of Work (SOW) & Service Level documents are available by business function: 

Contact Center   |   Finance and Accounting   |   Human Resources

IT Infrastructure   |   IT ADM   |   Procurement