{"id":3462,"date":"2021-04-12T23:32:43","date_gmt":"2021-04-13T03:32:43","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2015\/10\/12\/examples-of-intangible-services-their-degree-of-procurement-risk\/"},"modified":"2023-11-30T11:08:50","modified_gmt":"2023-11-30T15:08:50","slug":"examples-of-intangible-services-their-degree-of-procurement-risk","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/","title":{"rendered":"Examples of &#8220;Intangible Services&#8221; &amp; Their Degree of Procurement Risk"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p>Intangible services may be among the most difficult things to procure. As a result, one must be careful when contracting these. If you are not, you may get stuck with an incompatible supplier for an unprofitably long period of time. Here are some tips for service procurement risk management:<\/p>\n<p>We&#8217;re picking up from the <a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/procurement-risk-management\/\">article<\/a>, where we referred to \u201cintangible services\u201d as \u201cwork whose quality you can\u2019t experience before the performance.\u201d<\/p>\n<h6>Examples of intangible services:<\/h6>\n<ul>\n<li><strong>Advertising services<\/strong> \u2013 Just because an ad agency created an effective TV, radio, or print ad for another client doesn\u2019t mean that the one that they create for your organization will result in a spike in business.<\/li>\n<li><strong>Product design services<\/strong> \u2013 Just because a research and development firm designed a high-quality product for another client doesn\u2019t mean that the one they design for your organization will result in a competitive advantage.<\/li>\n<li><strong>Physical security services<\/strong> \u2013 Just because another client had no security problems when it hired a security firm doesn\u2019t mean that your organization\u2019s experience with that firm will be as good.\u00a0 The quality of physical security depends on the specific personnel deployed and the situation in which they are working.\u00a0 There may be a higher chance of disaster if inexperienced security guards are deployed at a socially divisive rally than experienced security guards deployed at a Neil Diamond performance, right?<\/li>\n<\/ul>\n<blockquote>\n<p>Procurement risk isn\u2019t equally high for all intangible services.\u00a0 A few of the general variables that affect your degree of risk include similarity to previously done work and frequency of performance.<\/p>\n<\/blockquote>\n<h6>Examples:<\/h6>\n<ul>\n<li>If you were procuring voice-over services, the chances are that if you heard recent samples of the voice-over talent\u2019s work on projects that are similar to yours, quality should not be dramatically different.<\/li>\n<li>If an interior designer who you are hiring to design the interior of your company\u2019s new facility has designed hundreds of office spaces, results should not vary too much if you have a decent specification for the work expected.<\/li>\n<\/ul>\n<p>But it\u2019s those intangible services where the work you want is not similar to what the supplier has done before and\/or is not something done frequently that can give you those procurement headaches for the ages.<\/p>\n<p>Bottom line: Be careful and use the three tactics described in the article when you procure these services.<\/p>\n<p><a href=\"https:\/\/www.certitrek.com\/nlpa\/individuals\/membership\/\">Become a member of one of the world\u2019s largest procurement associations today.<\/a><\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/procurement-risk-management\/\">How To Manage Service Procurement Risk\u00a0<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/appetite-for-taking-risk-in-your-supply-chain\/\">Appetite for Taking Risk in Your Supply Chain<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/supply-risk\/\">Supply Risk<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/courses\/supply-risk-and-sustainability-management\/\">Supply Risk and Sustainability Management<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/appetite-for-taking-risk-in-your-supply-chain\/\">Appetite for Taking Risk in Your Supply Chain<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/risk-checklist\/\">Risk Checklist<\/a><\/li>\n<\/ul>\n<p>Visit <a href=\"https:\/\/lms.nextlevelpurchasing.com\"><strong>NLPA Learning<\/strong><\/a>, the new home to all of our certifications and online courses. NLPA Learning also includes learning resources, including live and on-demand webinars, publications and reports, articles, templates, white papers, and more!<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":12,"featured_media":4133,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,22,103],"tags":[],"class_list":["post-3462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement","category-procurement-processes","category-risk-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Examples of &quot;Intangible Services&quot; &amp; Their Degree of Procurement Risk - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"description\" content=\"Intangible services may be among the most difficult things to procure. As a result, one must be careful when contracting these.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Examples of &quot;Intangible Services&quot; &amp; Their Degree of Procurement Risk\" \/>\n<meta property=\"og:description\" content=\"Intangible services may be among the most difficult things to procure. As a result, one must be careful when contracting these.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-13T03:32:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-30T15:08:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-143.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Examples of &#8220;Intangible Services&#8221; &amp; Their Degree of Procurement Risk\",\"datePublished\":\"2021-04-13T03:32:43+00:00\",\"dateModified\":\"2023-11-30T15:08:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\"},\"wordCount\":690,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Procurement\",\"Procurement Processes\",\"Risk Management\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/examples-of-intangible-services-their-degree-of-procurement-risk\/\",\"name\":\"Examples of \\\"Intangible Services\\\" &amp; Their Degree of Procurement Risk - Next Level Purchasing Association (NLPA)\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#website\"},\"datePublished\":\"2021-04-13T03:32:43+00:00\",\"dateModified\":\"2023-11-30T15:08:50+00:00\",\"description\":\"Intangible services may be among the most difficult things to procure. 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