> Enables all the stakeholders in the buying
organization to collaborate in generating and agreeing on the
value factors for evaluating the information, proposal, quote
(response to the eRFX) submitted by the pre-qualified vendors/suppliers
iServiceX’s Value Index System (VIS) ensures
that a buying decision is not made on price alone, but is comprised
of key leading indicators of economic value for the buyer. The
value factors may consist of leading indicators of supply or delivery
value such as:
Supplier’s understanding of the buyer’s
issues and needs
Supplier’s delivery experience on similar
sourcing/procurement initiative or contract
Supplier’s ability to achieve buyers
deliverable objectives within the time frame specified in the
terms & conditions or SLAs
Buyer's existing
relationship with Supplier
Supplier’s delivery approach; quality
of goods & services, commodity/service experience, chemistry
and competency of the Supplier’s key people assigned to
the opportunity; and total cost of ownership
The Value Index is set and agreed upon by the
stakeholders in the buying organization prior to distributing
the eRFX to the pre-qualified vendors/suppliers. In addition,
the buying organization and/or its agents can collaborate online
to review or request additional information for a vendor’s/supplier’s
proposal, and then evaluate and rank the proposals based on the
non-price value factors.
The system will automatically create a aggregate
of the buyers’ non-price rankings and feed the aggregated
rankings to the Private eCommerce engine where when negotiating,
the total cost of ownership is the only value factor. Final selection
by the buyer is done based on best value economics
– the composite of the non-price value rankings and the
total cost of ownership ranking.
