How do we mitigate against the risks of dependence upon a single supplier? Wouldn having two or three vendors reduce risk?
The possibility of procuring two or more ERP solutions was carefully examined during the course of the evaluation process. However, the cost to the State of implementing even two widespread ERP solutions was considered to be too high. No compelling reason could be found as to why the State’s investment should be spread beyond the recommended consortia bid. Indeed, there are strong cost, standardisation and integration benefits in a single solution. Risk mitigation will be achieved by careful negotiation and crafting of the final contract which will include appropriate SLA’s and damages clauses should the contractor fail in their obligations. It should also be noted that the State will have other business system solutions in place, given that SAP will be retained by the WA Police Service and Peoplesoft will continue operating in the Department of Education and Training (for HR and payroll only).
