Choosing the Right Procurement Solution

Opportunity

A multi-state non-profit health insurance organization was re-engineering and modernizing its procurement function. As part of that process, a new software system to help manage RFPs, RFQs, and supplier contracts needed to be selected and implemented.

Solution

Key stakeholders from both procurement and their internal business clients were identified and engaged to support the selection process. Requirements for the new system were gathered, prioritized and documented. Key knock-out and essential/must-have criteria for the new system were determined and candidate systems identified and shortlisted based on those criteria. Common functionality and capabilities across the candidate systems were determined, and an RFP and scoring system that focused predominantly on the differentiating features, SLAs and criteria developed and sent to the top 5 candidate systems. Based on the RFP responses, three vendors were invited to demonstrate their software to the key stakeholders, who each scored the three systems against the weighted criteria. Based on the consolidated scores, two systems were selected for price negotiations and comprehensive total cost of ownership (TCO) analyses developed. Based on the TCO analyses one solution was selected for contracting and implementation.

Outcome

The client selected the system that offered the best value and capabilities for its needs with the full support and commitment of the key stakeholders essential for implementation and adoption. The system was successfully implemented and adopted on time and under budget.