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European Outsourcing Association |
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Date:
11.06.2004
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Categories: outsourcing market, Europe,
conference |
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Goto page:
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Conference highlights |
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Outsourcing partner
selection process at AVIS |
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By: Mittu Sridhara, Vice President,
Information Technology, AVIS Europe |
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The
outset |
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Create and
deliver technology enabled competitive advantage to
increase revenue generation and operational
effectiveness while driving down unit cost within the
context and boundaries of AVIS. |
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The
first step at AVIS
was to define a sound sourcing strategy: |
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 Understanding
the organisation and its needs |
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Develop
a business case |
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Define
the procurement process, strategy and retained
organisation |
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The
partner selection process: |
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Definition
(internally) of the "successful provider" |
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Definition
of the type of partnership sought |
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Evaluation
of various supplier offers and cultural fit |
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AVIS was
looking for the following
features and capabilities in prospective
suppliers; |
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Skills |
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Change
and project management experience |
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Flexibility |
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Cost
advantage |
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Geographical
coverage |
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Innovation |
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Cultural
fit |
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Willingness
to share risks |
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The key
areas of evaluation
was conform with the pre-defined criteria set for
suppliers; |
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Business
capabilities and features (relationship and account
management, geographic coverage, governance and
management, corporate culture |
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Commercial:
costs, terms and conditions |
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Technical
capabilities: how far the candidates meet the AVIS
Statement of Requirements, technology portfolio |
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Change
management: risk management, transition and change
management process |
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Human
resources: conformity with TUPE - Transfer of
Undertakings (Protection of Employment) Regulations.
More on TUPE can be found
here. |
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Dedication
to the AVIS procurement process: communication,
conformity, ambitions |
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AVIS has divided the selection process into 4 phases.
The evaluation had been carried out by several teams. In
the first and the second phase the Technical
capabilities were weighted 60%, Business capabilities
30% and Commercial features 10%. In the third phase
Commercial capabilities were weighted 40%, References
and cultural fit 20% and Understanding and Innovation
10%. In phase four due diligence analysis was carried
out where prospective suppliers were assessed based on
their demonstrated capabilities to deliver the desired
services at a desired level and the ability to innovate
(again in the context of demonstrated capabilities vs.
required status). |
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