Introduction PART I: LAYING THE FOUNDATION Review of Vested Outsourcing 5 Rules Creating a System that has a flexible framework WIIFWe/ Creating a Shared Vision PART II: CREATING A PROCESS BY THE RULES Rule 1: Outcome-Based vs. Transaction-Based Business Model Intent Rule 2: Focus on the WHAT, not the HOW Statement of Objectives Rule 3: Clearly Defined and Measurable Desired Outcomes KPIs/Metrics Rule 4: Pricing Model with Incentives to Optimize Cost/Service Tradeoffs Matching Incentives Continuous Alignment Rule 5: Insight vs. Oversight Governance Structure Relationship Management Framework Change Management/ Agility Transformation Management Process Exit Management, People Changes Other PART III: GETTING TO WE Collaboration, not Negotiation Writing the Contracts Conclusion Appendix

KATE VITASEK is Lead Researcher and Faculty Member for Vested Outsourcing at the University of Tennessee’s Centre for Executive Education, USA. Vitasek is also Founder of Supply Chain Visions, a consulting firm that specializes in supply-chain strategy and education. She is a guest faculty at dozens of Universities and also teaches seminars for the Warehouse Education Research Council, Council of Supply Chain Management Professionals and is on the peer review board for the
Journal of Business Logistics with Jeanette Nyden, JD,  Jacqueline Crawford,  and Katherine Kawamoto.