Yesterday we had a very engaging and informative webinar on Procurement of Consulting Services. You can view the replay here
Featured was Srini Varadarajan, Procurement Operations Manager at WellPoint discussing their automation of Consulting Services Procurement, along with Endre Stogard, Category Manager, Ariba noting industry trends and best practices, followed by Kevin Simurda, Manager, Global Spend Management Services, Ariba with tips on writing effective SOW's. This is the first in a series of posts with the Q&A from this valuable webinar.
Q: How does WellPoint establish pricing on the Purchase Requisition? Do you use category forms?
A: WellPoint uses Category Definition in Ariba Services Procurement. We have some customization to include additional fields like project sponsor, project document etc.
Editor’s note – Ariba has flexible templates for each category (Temp labor, consulting, print, market research) and a universal template that can be configured for any category. After defining the parameters in the requisition, e.g. for temp labor - skill set, geography, etc., the system will reference a rate cards to determine the “Not to Exceed” price which is visible to the requisitioner and supplier.
Q: What's the difference between your recurring fee line and the fixed line?
A: Recurring fee is when the same payment occurs each month. Used for post implementation maintenance or where there's a monthly release schedule.
Fixed fee is for milestone based payment where a single invoice is expected for the entire line.
Q: WellPoint spends about a half billion annually on consulting services.. how many people are on your consulting services purchasing team?
A: Approximately 8 FTE’s.