RAQSCI model - Business Need Identification Tool

Clarity and priority are very important when defining business needs in procurement process. One of popular tool to help is RAQSCI model.

RAQSCI stands for Regulatory, Availability, Quality, Service, Cost, and Innovation. The sequence of RAQSCI is suggesting of what should be defined first than the others. RAQSCI model usually represented as a ladder.

Each step on the ladder represents a business need which should be identified and carefully defined before starting the sourcing. The ladder approach helps procurement to engage with stakeholders in a structured manner.

RAQSCI will help both user and procurement to consider a broad perspective of business needs and do not focus only on costs. Each of element of RAQSCI are as follows:

REGULATORY

Legal requirements that relate to the goods and services needed. E.g., regulatory body product certification, product safety regulation, national industry standard, etc.

AVAILABILITY

Factors associated with the availability, accessibility, and supply continuity of goods and services when required. E.g., capacity, financial stability, backup supply plan, etc.

QUALITY

The ability of the supplier to ensure consistency and repeatability of production of the goods or services. E.g., quality management system, compliance with specification, reliability, lab capability, etc.

SERVICE

Requirements of the way the goods or services are supplied or provided, and any support activities.  E.g., lead time, inventory holding, order processing, level of flexibility, customer support, training, communication, etc.

COST

Factors related with cost or price including all commercial terms to supply the goods or services. E.g., expected total cost, aspiration of cost reduction, preferred pricing scheme, term of payment, charging method, etc.

INNOVATION

Supplier capability to perform continuous improvement to reduce costs in long term, offering innovation that can increase value and competitive advantage.