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SPs and Ps - Supplying Principles and Practices - Contents
2-15.14
Key Considerations
Full-Service:
This model provides a low cost in the short run.
There are few barriers to entry because the technology is hosted offsite
and the service provider assists with all aspects of running the actual auction — from setting up the auction rules and timeline, training bidders (suppliers), monitoring the event, etc.
With more time on hand, the Postal Service is able to focus its attention
on other aspects of the SCM process and award the contract.
Hosted Service:
Auction logistics are left to the third party.
The model works for those looking to handle additional logistics, but
not wanting the technology within their environment.
Self-Service:
This model works best if the Postal Service purchases frequently and
has the IT infrastructure available to implement and support the application.
The model provides the lowest TCO over the long term, although the
initial investment is much higher than that of the other options.