Vested Outsourcing Hits the Sweet Spots

Todd Shire, Logistics Sourcing Strategy Manager at Intel, has been a big fan of Vested Outsourcing from day one.

He’s been generous with his thoughts and help and his valuable insights were major contributions to the first Vested book, Vested Outsourcing: Five Rules That Will Transform Outsourcing, which was published just over a year ago.

In the first Vested book, Shire relates how his company fell into the Penny-Wise and Pound Foolish ailment, one of the 10 Ailments that can plague conventional outsourcing agreements. “Our strategy had been to frequently rebid and transition our business from supplier to supplier, always chasing the lowest transaction cost. We could feel comfortable that we were paying the lowest market price for a specific service, but we weren’t creating any value through our relationship with our service provider. We were stepping over a dollar to pick up a dime.”

His latest contribution to the Vested cause is this amazing graphic, which deftly illustrates how Vested Outsourcing touches all the sweet spots of desired performance and value outcomes for companies and service providers that craft Vested relationships.

As you can see Shire places Vested Outsourcing at the confluence of important desired outcomes in the company-service provider relationship, including innovation and improved service, improved margins for the service provider and reduced costs to the company outsourcing.

This is simply a fantastic illustration of the value that Vested Outsourcing brings to the table and in addition, how to avoid those nasty, non-Vested gray areas!

Shire predicts that the buzzword for the next decade will be incentives. “Only when our incentives are aligned will we succeed with collaboration. Vested Outsourcing nails how to get collaboration right.”

As we start a new decade, Shire also nails the importance of Vested to the idea of collaborating for the win-win with this illustration.

A big thanks, Todd!

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