In my supplier management plan, we account for the outsourcing company to outsou

Question

In my supplier management plan, we account for the outsourcing company to outsource parts of the work to other companies.

When outsourcing work, the original organization wants to maintain as much control as possible. For this reason, co-sourcing is an option. In this case, the main organization drives the work.

We experienced a situation recently where an app developing company fell short of expectations. The work did not match the requirements. We decided to cut ties with the company even after making a significant investment. What do you use as a marker of when it's time to go in a different direction? How do you justify the move to the leadership team?

Explanation / Answer

I use below points as a marker to move into different direction:

In order to justify the move to the leadership team, detail rationale needs to be presented. In case of Quality, the serious issue in past needs to be highlighted to sensitize people on level of implication. For pricing, it is essential to share the existing rate in the market in order to compare with what is charged by company. The comparison with actual data always helps to justify the point and help leadership team understand implications.

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