Kate Vitasek

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Kate Vitasek (born September 19, 1968) is an American author and educator. She is a faculty member for Graduate and Executive Education at the University of Tennessee Haslam College of Business [1] Her research focuses on the Vested outsourcing business model, sourcing business model theory, the relational contract, and collaborative win-win business relationships.

Contents

Career

Before joining University of Tennessee, she worked for P&G, Microsoft, Accenture, Stream International, and Modus Media Modus Media International.

At University of Tennessee, Vitasek researches business models. [2] In 2010, Vitasek and two researchers codified their findings on the Vested business model into a methodology to enable organizations to create highly collaborative relationships. Vitasek's work on the Vested business model led to what is known to as Sourcing Business Model theory. Many of Vitasek's books are about the Vested outsourcing collaborative win-win relationships. [3] Vitasek has also done research for the U.S. Air Force on issues relating to contracting logistics and transportation. [4]

Vitasek's recent research has focused on relational contracting. In 2021 she published (with David Frydlinger, Jim Bergman, and Tim Cummins) Contracting in the New Economy: Using Relational Contracts to Boost Trust and Collaboration in Strategic Business Relationships [5] which argues for adopting formal relational contracts as the standard for contracting activity. The Nobel laureate Oliver Hart's Foreword in the book notes, “…for a long time I have felt that the traditional approach to contracts, where lawyers try to think of all the possible things that can go wrong in a relationship and include contractual provisions to deal with them, is broken.” Hart added that it “never worked that well, and in an increasingly complex and uncertain world it works even worse.”

In 2019, Vitasek Frydlinger and Hart collaborated on a Harvard Business Review article, "A New Approach to Contracts: How to Build Better long-term strategic partnerships". [6] The authors assert that "a formal relational contract lays a foundation of trust, specifies mutual goals, and establishes governance structures to keep the parties’ expectations and interests aligned over time." [6]

Reviews of works

Vested Outsourcing (2010) describes how to outsource business processes or services. [7] The book identifies potential issues in outsourcing and how companies can best work together for a good outsourcing relationship. [8] Hollye Moss, professor at the Western Carolina University, wrote that the book "takes a new approach to the relationship, creating a win-win scenario. It is well-written, easy to read, and thought-provoking." [7] Booklist wrote that Vested: How P&G, McDonald's and Microsoft are Redefining Winning in Business Relationships (2012) was a "lively presentation" by the authors and that it "should appeal to businesspeople willing to take a chance on trust and transparency to produce transformative results." [9]

Awards and recognition

Vitasek was recognized by The Journal of Commerce as a "Woman on the Move in Trade and Transportation" and as a "Rainmaker" by DC Velocity for her contributions to building the supply chain profession. [10] For her work on Vested, she was named one of Globalization Today's "Powerhouse 25" outsourcing industry leaders. Other accolades include recognition by Logistics Quarterly and Supply Chain Digest as a "Woman in Supply Chain," honored as a "Woman of International Influence" by Global Executive Women, and being named on the Global Sourcing Association's inaugural "A-List".[ citation needed ]

Selected works

Books

Related Research Articles

<span class="mw-page-title-main">Supply chain management</span> Management of the flow of goods and services

In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

<span class="mw-page-title-main">Business model</span> Rationale of how an organization operates

A business model describes how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.

Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and assets from one firm to another. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. The concept, which The Economist says has "made its presence felt since the time of the Second World War", often involves the contracting out of a business process, operational, and/or non-core functions, such as manufacturing, facility management, call center/call center support.

Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement.

A business alliance is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by an integrated project team. An example of this is code sharing in airline alliances.

A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.

A strategic partnership is a relationship between two commercial enterprises, usually formalized by one or more business contracts. A strategic partnership will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic partnerships can take on various forms from shake hand agreements, contractual cooperation's all the way to equity alliances, either the formation of a joint venture or cross-holdings in each other.

Strategic sourcing is the process of developing channels of supply at the lowest total cost, not just the lowest purchase price. It expands upon traditional organisational purchasing activities to embrace all activities within the procurement cycle, from specification to receipt, payment for goods and services to sourcing production lines where the labor market would increase firms' ROI. Strategic sourcing processes aim for continuous improvement and re-evaluation of the purchasing activities of an organisation.

Ericsson Hewlett Packard Telecom (EHPT) was a Swedish consortium made up of 60% Ericsson interests and 40% Hewlett-Packard interests. The company was founded in 1993 as a joint venture owned by Ericsson and Hewlett-Packard. It was an independent, world-class provider of application software and services to telecom operators and has installed 450 operations support and business support systems in 65 countries. Set up by Hewlett-Packard and Ericsson to address the telecoms industries "huge technological challenge in the early 1990s: that of moving from memechanical to electronic switching platforms"...

Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk.

Military Theory is the study of the theories which define, inform, guide and explain war and warfare. Military Theory analyses both normative behavioral phenomena and explanatory causal aspects to better understand war and how it is fought. It examines war and trends in warfare, beyond simply describing events in military history. While military theories may employ the scientific method, theory differs from Military Science. Theory aims to explain the causes for military victory and produce guidance on how war should be waged and won, rather than developing universal, immutable laws which can bound the physical act of warfare or codifying empirical data, such as weapon effects, platform operating ranges, consumption rates and target information, to aid military planning.

<span class="mw-page-title-main">Bidding</span> Method of competitive price determination used in auctions, stock exchanges, etc.

Bidding is an offer to set a price tag by an individual or business for a product or service or a demand that something be done. Bidding is used to determine the cost or value of something.

On-demand outsourcing is a trend in outsourcing wherein major internal operations processes of a company are being shifted to a provider that is paid for by the number of transactions involved. The business transferring the services pays for the quality, special skills and the competence of the service provider's employees. There has been an expansion of the outsourcing concept to include on-demand outsourcing. This refers to the process undertaken by business managers to adopt an outsourcing policy that ensures that the specific business and supplies including technical manpower are accessed as the need arises. It focuses a business strategy to improve its goods and services and to drive a business towards quality improvement.

<span class="mw-page-title-main">I-35W Saint Anthony Falls Bridge</span> Bridge in Minneapolis, Minnesota

The I-35W Saint Anthony Falls Bridge crosses the Mississippi River one-half mile downstream from the Saint Anthony Falls in Minneapolis, Minnesota in the U.S., carrying north–south traffic on Interstate Highway 35W. The ten-lane bridge replaced the I-35W Mississippi River bridge, which collapsed on August 1, 2007. It was planned and is maintained by the Minnesota Department of Transportation (MnDOT). The planning, design, and construction processes were completed more quickly than normal because Interstate 35W is a critical artery for commuters and truck freight. The bridge opened September 18, 2008, well ahead of the original goal of December 24.

Online outsourcing is the business process of contracting third-party providers, which can be overseas, to supply products or services which are delivered and paid for via the Internet.

A relational contract is a contract whose effect is based upon a relationship of trust between the parties. The explicit terms of the contract are an outline implicit terms and understandings that determine the behaviour of the parties.

Vested outsourcing is a hybrid business model in which contracting parties create a formal relational contract using shared values and goals and outcome-based economics to create an agreement that is mutually beneficial for each party. The model was developed out of research by the University of Tennessee led by Kate Vitasek.

Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.

Performance based contracting (PBC), also known as performance-based logistics (PBL) or performance-based acquisition, is a product and services purchasing strategy used to achieve measurable supplier performance. A PBC approach focuses on developing strategic performance metrics and directly relating contracting payment to performance against these metrics. Common metrics include availability, reliability, maintainability, supportability and total cost of ownership. The primary means of accomplishing this are through incentivized, long-term contracts with specific and measurable levels of operational performance defined by the customer and agreed on by contracting parties. The incentivized performance measures aim to motivate the supplier to implement enhanced practices that offer improved performance and cost effective. This stands in contrast to the conventional transaction-based, or waterfall approach, where payment is related to completion of milestones and project deliverables. In PBC, since a part or the whole payment is tied to the performance of the provider and the purchaser does not get involved in the details of the process, it becomes crucial to define a clear set of requirements to the provider. Occasionally governments fail to define the requirements clearly. This leaves room for providers, either intentionally or unintentionally, to misinterpret the requirements, which creates a game like situation.

Relational capital is one of the three primary components of intellectual capital, and is the value inherent in a company's relationships with its customers, vendors, and other important constituencies. It also includes knowledge, capabilities, procedures and systems which are developed from relationships with external agents.

References

  1. ↑ "Kate Vitasek". Haslam College of Business. Retrieved March 18, 2018.
  2. ↑ Mark, Ken (October 2011). "Beyond the Shell Game" . Canadian Transportation & Logistics. 114 (10): 16–19 – via EBSCOhost.
  3. ↑ Moore, Peter (February 2013). "Re-Imagining the Shipper/Carrier Relationship" . Logistics Management. 52 (2): 21 – via EBSCOhost.
  4. ↑ Mullen, Hank (February 2010). "Masters class: Negotiating LTL costs". Logistics Management. Retrieved November 5, 2023– via TheFreeLibrary.
  5. ↑ Frydlinger, D., Vitasek, K., Bergman, J., Cummins, T., Contracting in the New Economy: Using Relational Contracts to Boost Trust and Collaboration in Strategic Business Relationships, (New York: Palgrave Macmillan, 2021) ISBN   978-3030650988, 1st edition
  6. 1 2 Frydlinger, David; Hart, Oliver; Vitasek, Kate (September 1, 2019). "A New Approach to Contracts". Harvard Business Review. ISSN   0017-8012 . Retrieved November 19, 2021.
  7. 1 2 Moss, Hollye (June 27, 2010). "How to Outsource Your Business to Success". Asheville Citizen-Times. Retrieved March 18, 2018– via Newspapers.com.
  8. ↑ "The five golden rules to transforming outsourcing partnerships: as co-author of a new book entitled 'Vested Outsourcing,' Kate Vitasek – a leading academic from the University of Tennessee – the ten key ailments that commonly afflict outsourced partnerships, and presents five golden rules for success". Supply Chain Europe. May 2010. Archived from the original on March 19, 2018. Retrieved March 18, 2018– via HighBeam Research.
  9. ↑ Carroll, Mary (July 2012). "Vested: How P&G, McDonald's, and Microsoft Are Redefining Winning in Business Relationships" . Booklist. 108 (21): 19 – via EBSCOhost.
  10. ↑ "Kate Vitasek | Outsource magazine: thought-leadership and outsourcing strategy". archive.outsourcemag.com. Retrieved March 18, 2018.
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