Integrated Service Provider
Encyclopedia
An Integrated Service Provider (ISP) is a for-hire firm that performs a variety of logistics
service activities such as warehousing, transportation, and other functional activities that constitute a total service package, as defined by the American Marketing Association
. Firms that provide such services typically have a good understanding of their customers needs and are responsible for executing services in accordance with contract
documents. Normally the scope of work (SOW) and the ISP contract are finalized only after an extensive due diligence
period.
to cut costs. In addition, the ISP and the customer normally will use key performance indicators
that provide constant feedback
on the performance of the ISP program.
Management of an ISP contract is typically a joint effort with both sides designating an ISP Manager. These managers will normally have quarterly review meetings to review performance and feedback with the customer's facility management team. Managers will also develop and review strategies related to spend management
.
ISP firms may be required to hold certain permits or licenses in order to perform services. To obtain information on state requirements, a firm may check with the Contractor's License Reference website as well as the National Contractor's website.
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
service activities such as warehousing, transportation, and other functional activities that constitute a total service package, as defined by the American Marketing Association
American Marketing Association
The American Marketing Association is a professional association for marketers. As of 2008 it had approximately 40,000 members. There are 76 professional chapters and 250 collegiate chapters across the United States....
. Firms that provide such services typically have a good understanding of their customers needs and are responsible for executing services in accordance with contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
documents. Normally the scope of work (SOW) and the ISP contract are finalized only after an extensive due diligence
Due diligence
"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
period.
As a service
The ISP provider may be contracted to perform a function or consolidate any number of activities required to support the customer's needs. In any case, normally the primary goal of the ISP is to achieve an overall cost savings for the customer. ISP providers normally work closely with the customer's management team within a facility to provide strategic sourcingStrategic sourcing
Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. In a production environment, it is often considered one component of supply chain management...
to cut costs. In addition, the ISP and the customer normally will use key performance indicators
Key performance indicators
A performance indicator or key performance indicator is an industry jargon for a type of performance measurement.. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged...
that provide constant feedback
Feedback
Feedback describes the situation when output from an event or phenomenon in the past will influence an occurrence or occurrences of the same Feedback describes the situation when output from (or information about the result of) an event or phenomenon in the past will influence an occurrence or...
on the performance of the ISP program.
Management of an ISP contract is typically a joint effort with both sides designating an ISP Manager. These managers will normally have quarterly review meetings to review performance and feedback with the customer's facility management team. Managers will also develop and review strategies related to spend management
Spend management
Spend management is the way in which companies control and optimize the money they spend. It involves cutting operating and other costs associated with doing business...
.
ISP firms may be required to hold certain permits or licenses in order to perform services. To obtain information on state requirements, a firm may check with the Contractor's License Reference website as well as the National Contractor's website.