eSourcing Capability Model (eSCM)

The eSourcing Capablity Model (eSCM) is an best practice model aimed at (1) provide client and supplier organizations guidance to help improve their sourcing capabilities, and (2) to provide client and supplier organizations with an objective means to evaluate their sourcing capabilities.

Introduction

The eSCM was developed bij a consortium led by Carnegie Mellon University and consists out of two models:

• eSCM-CL for client organizations
• eSCM-SP for supplier organizations

For the IT to deliver maximum business value, both client and supplier organizations must address many challenges, including:

Clients:

• Establishing an appropriate sourcing strategy,
• Identifying capabilities that could be sourced,
• Developing appropriate approaches for sourcing activities,
• Managing risks throughout their sourcing activities,
• Identifying, selecting, and negotiating with service providers,
• Conducting service provider governance and performance management, and
• Managing relationships with their service providers.

Suppliers:

• Translating implicit and explicit needs into defined requiremens with agreed-upon quality levels
• Establishing well defined contracts with clients, suppliers and partners
• Monitoring and controlling activities to meet service delivery commitments
• Managing continuity of the service delivery
• Ensuring compliance with statutory and regulatory requirements
• Manging client’s security
• Monitoring client’s user satisfaction
• Managing relationships with clients and service providers
• Innovation, creating flexibility and increasing responsiveness to meet unique and evolving client requirements

To address these and other challenges, the eSCM provides a 100+ practices to help organizations to assess and improve their capabilities. BlinkLane is of the opinion that sourcing is part of the core competences of all modern organizations, and these organizations must acquire the capabilities to engage, manage and optimize sourcing relationships themselves.

BlinkLane experience

BlinkLane uses eSCM for different types of assignments:

1. Design and implementation of client’s sourcing management organizations
   BlinkLane uses the eSCM-CL model to define the structure, processes and capabilities of retained organizations.
2. Assessing sourcing management organizations
   Implemented sourcing management organizations can be assessed using eSCM-CL, resulting is a clear overview of potential improvements of the organization.
3. Continuous improvement of sourcing management organizations
   BlinkLane uses eESM as the basis of her incremental approach (align, assess, plan and develop) for the continuous improvement of the capabilities of sourcing management organizations, in order to allow it to achieve the ambitions of the organization.
4. Optimizing client and supplier cooperation
   BlinkLane uses eSCM-CL and eSCM-SP for assessing both the client and supplier organizations. Improvement plans are then executed to improve weaknesses at both parties after confronting each other with these results.
5. eSCM as an auditframework
   BlinkLane has used eSCM for the development of a sourcing management audit model that is used for internal and external reporting on the effectiveness of the sourcing management organization.

Please contact us for more information.